Evening star., 1936-01-23
TAX SPECULATION
ARISES AS BONUS
BILL ACTION WAITS
Politicians Try to Figure
Taxpayers Attitude if Veto
Is 0verridden.
PREFER TO SHUN LEVIES
UNTIL AFTER ELECTION
Roosevelt Sends Measure to Vet.
erans' Administration for Inspec.
ton, but Is Silent on Decision.
BACKGROUND

BACKGROUND
Speed has been the keynote of
the latest dri1e in the 17-yedr-
battle to pay World War Ueterans
bonus. Despite diSapproual OF
four Presidents the campaign up
to noD has been successful enough
to prouide, first. for issuance OF
adjusted compensation certificates
to be casted in 1915, and later for
lending privileges on those certif-
Gates. Demand for immediate pay.
ment has been constant but unsuc-
ceSStul. HoUeuer, in December
Speaker Byrns announced Uictory
Uas assured Major ueteran or
ganisations agreed to back one
measure, uhich reached the floor
OF the House fUe days after Con-
gresS met. Nineteen days after
Congress conuened the compromise
bill was on the Presidents desk.
BY the Associated Press.
Intimates of President Roosevelt
hazarded the guess today that he
would veto the baby bond bonus bill
which reached his desk from Congress
yesterday, but the President himself
gave not the slightest hint of his at.
titude
On Capitol Hill, where the measure
swept through the House yesterday,
346 to SO. after previously passing the
Senate. "a to I6, leaders reiterated
that the veto question was merely
academic, so far as the fate of the
bill is concerned
Legislators we're so confident the
bill would pass over a veto that they
were already specializing as to wheth-
er Mr.. Roosevelt will demand new
taxes to finance the payments to
veterans
According to the lowest estimates,
81 900 100000 will be needed within
few months if the bill becomes law.
The Government, after passing out
baby bonds of $50 denomination to
pay off 3,500000 adjusted service cer-
tificates, will stand ready to cash the
bonds next June Is.
New Taxes Speculated Upon.
While the ultimate cost is esti.
mated at S2,49l ,OOO0 900, bonus lead
ers continued to insist that holders
of only about s100O,0 100000 will call
for cash on or Immediately after
June Is. Some others say the quick
demand for cash will total s2,00O,000
~ fan yratn
draw per cent interest if they hold
the bonds.
The President. who made no provi-
sion for such expenditures in his
budget, has intimated he feels new
taxes will be necessary if extra
pudgetary expenses are incurred.
Many legislators, however, would
much prefer not to levy new taxes on
their constituents in a campaign year
With Mr.. Roosevelts own legislative
leaders lined up behind the measure
there was much speculation as to what
effect the whole problem would have
on the November elections. Politicians
tried to figure how the voters would
feel if, as many predict, the President
vetoes the bill, and his supporters then
override him.
Bill Sent to Veterans Bureau.
The President has 10 days in which
to decide. II he does not sign or veto
within that time. the bill becomes law.
In the meantime. he has sent it on a
routine journey through the Veterans
Administration for check-up. Thus,
it is likely to be several days before
he takes action.
Yesterdays tusillade of "ayes" in
the House had hardly ended when
Speaker Byrns and Vice President
Garner affixed their signatures. Repre-
sentative Parsons Democrat, of Illinois,
chairman of the House Committee on
Enrolled Bills. personally rushed the
measure to the White House and
handed it to a clerk there
Almost at the same instant, there
arrived a telegram to Mr. Roosevelt
from Henry H. Curran, director of the
National Economy League
Give them the same good veto
message you gave them year ago."
it said.
Curran referred to the Presidents
veto of the inflationary Patman bill,
which died in Congress after the veto.
Doughton Justifies Prepayment.
In the brief debate in the House
yesterday, Chairman Doughton of the
Ways and Means Committee gave his
reply to critics who point out that
the adjusted service certificates do not
mature until 1945, under present law,
and say that the new bill gives ex-
soldiers more than their original
contract"
1T will not give them more than
that contract should have provided"
Doughton said.
Speaker Byrns was among those
voting for the bill. Among its Re-
publican supporters was Representa-
tive Fish of New York, who said it
would not impair the soundness Of
the dollar" Representative Rich, Re-
publican. of Pennsylvania, said it
would give veterans SIS more on each
certificate than they were entitled to.
Readers Guide