Evening star., 1936-02-02

Continued From First Page)
powers to increase currency in clrcula-
ton. with the backing of the Treas
ury's gold and silver stocks.
There was general agreement that
use of currency imitation to wipe out
the bonus debt would sidetrack effec-
lively the administrations opposed
Frazier-Lemke bill to refinance farm
mortgages by issuing $4,000, 900 900
of new currency. A petition to force
House vote on that measure has 2l5
signatures. only three short Of the
number needed to Whisk it onto the
| floor.
White House Word Awaited.
Congressional leaders still were
awaiting a more definite expression
tional taxes before making any move
They noted with interest that reports
from high official sources indicated
consideration was being given tax
bill that might raise S730000, 000-
$500, 100000 for the farm program and
$3.50 900 900 as start toward amor
tizing the bonus.
James E. Van Zandt, commander
in chief of the Veterans of Foreign
Wars, issued statement asserting no
new taxes are necessary to pay the
so-called bonus"
In New York, DR.. o. NJ. w. Sprague
OF Harvard University. one time New
Deal fiscal advisor, asserted the ma
tional debt could increase to $40 O0O.-
100000 without any weakening of
credit provided the total is approa ched
on the basis Of smaller annual deficits.
Bonus Fund Rider Planned.
Plans went forward, meanwhile to
| meet Mr.. Roosevelts request for a
bonus appropriation by cementing it
! onto the independent Offices appropri-
alton bill in the Senate.
Similar strategy was behind the
program TO obtain funds for carrying
out the farm bill. There were indica-
| tions Of speedy action on both.
In the interim, the House proposed
to work next week on the Treasury
Post Of1lce appropriation bill and per-
haps the administration permanent
neutrality measure
Called together by Representative
Patman. Democrat, of Texas, peren-
NAL sponsor Of legislation to pay the
bonus In new currency, the House cur
rency inf1ationiSts went on record as
opposing any effort that might delay
or block the bonus appropriation.
Representative Lee, Democrat. of
Oklahoma, said the best method of
putting their demands across was to
force vote, probably by the petition
! route, on separate bonus imitation
| bill.
Patman said the Steering Commit
tee, which he is to name, would get to
work promptly on strategy that would
take every possible parliamentary
device into consideration.
Declaring Congress must turn either
| to currency expansion or new taxes.
Representative Rankin, Democrat, of
MISSISSIPPI, said imitation Is the "only
hope now for not levying on the man
least able to pay"
Representative Greenwood said
those present were not advocating
| 'greenbacks."
Byrns Sees Peril.
Speaker Byrns said at his press con-
ference that many signers of the
Frazier-Lemke petition were present
at the meeting He added:
"The chances of putting over ex-
panded currency for the bonus may
be hurt If the Frazier -Lemke bill is
considered first, because under the
bill the House would be called upon to
vote $3,000,000,000 even before the
bonus consideration comes up."
Charging the farm refinancing bill
involved fiat money" the Speaker
said 1t would provide for only third
OF the farm mortgage and the ultimate
cost would be 100000, 900.