Evening star., 1936-02-01
IMITATION GROUP
ASKS NEW MONEY
ISSUE FOR BONUS
Added Taxes Held "EntireIy
Unnecessary" in House
Factions Session.
TWOSCORE MEMBERS
PRESENT AT MEETING
Thomas Announces Similar Move
in Senate-Resolution Hits
Tribute to Banks
BACKGROUND

BACKGROUND
With the skeleton of soak
the-rich" tar program enacted last
Summer still to become effective,
President Roosevelt and Congress
both hoped to auoid nelG legislation
OF this type this year; in his jan
uary budget message the Chief En-
ecutiue said no new leuieS appeared
necessary.
Almost Immediately collapse OF
the A. A. A., NTH It's processing
tar receipts. and passage OF a ST.
100000, 900 bonus plan left the dd-
ministration facing need for about
$4,000, 900 900 more than estimated.
Since then President Roosevelt has
spoken of nep tdres, congressional
blocs haze preached imitation and
administration leaders on Hill hdue
tried to dismiss both.
The House infationary bloc adopted
a resolution today for payment OF the
soldiers bonus in new currency.
The resolution opposed any new
taxes as entirely unnecessary" 1t
was adopted as word of a s730 900, 900
tax bill to meet bonus and farm relief
costs was passed in high administra-
ton quarters.
There was no dissenting vote as
Representative Patman, Democrat, Of
Texas, leader of the group, put the
question to approximately twoscore
Representatives present
Face Taxes Soon.
"The understanding is, OF course,
that we are going to be faced with
taxes soon" Patman told the group.
THE question is, are we going to sit
idlv by and let the bankers get an
other rake-off on the debt to the vet
erans.'
Representative Blanton, Democrat,
of Texas. asserted that the only rea-
son financiers prefer the issuance OF
bonds to pay the bonus rather than
currency expansion is because they
get per cent interest on the bonds
and a bonus out of manipulation Of
bonds"
The resolution adopted was pro-
posed by Representative Greenwood.
Democrat, of Indiana, who said
MANY of us-in fact all OF us
do not believe in wild initiation that
would see Government credit and
purchasing power imperiled. But We
could issue notes on the metallic base
that lies in the Treasury and belongs
to the Government
Thomas Plans "Senate Move"
After consulting Patman before the
meeting opened, Senator Thomas.
Democrat, of Oklahoma, announced
a similar movement would be initi-
ated in the Senate,
I'VE are going to start movement
in the Senate he said, Ito block all
tax legislation and the issuance of any
more Understanding bonds until the
Treasury has issued currency against
the idle gold and silver"
The Greenwood resolution placed
( the initiation bloc on record as:
Viewing continued issuance of inter-
est bearing bonds with alarm.
Favoring sound and adequate cur
rency controlled at all hazards"
! Tribute" to Banks Fought.
Reafirming that notes should be
issued against the Governments golc
and silver so no tribute" would be
paid large banking corporations.
Deploring new taxes as entirely un'
necessary.
Instructing Chairman Patman tc
appoint a steering committee to carry
through the program.
Democratic leaders continued tc
scoff at the imitation drive. declaring
it had no chance. But Patman also
scheduled for consideration the ques.
ton of forming an alliance between
those who would pay the S2249 ,0000
bonus in new money and farm inf1a-
| tionists.
The latter have been seeking tc
force a House vote on the Frazier
Lemke bill. which would refnance
farm mortgages on easier terms by
printing ur to $4,000 100000 of new
money. There also was talk in in.
fidtionist ranks of financing, in simi'
lar fashion, the new farm program
estimated to cost more than S400,000,'
900 year.
Administration leaders. in scouting
imitation talk, pointed to President
Roosevelt's stand. taken last year, thai
printing press money" has always
| (See TAXES. Page %