Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-01-26
VETO NEAR DEATH
BONUS TAXFOUGHT.
Congress Chiefs Deny Need
for New Levy-InfIation
Debate Spreads.
BACKGROUND

BACKGROUND
Conscious of political poUer, or.
ganized Deterdns' groups OF Amer
icd's tDars haze been uniformly
successful in persuadin0 Congress
to grant cash reDGrds. Veterans
Administration in present fiscal
year has budget OF nearly $780,
100000. about halt OF Which is er-
pended in pensions.
Veterans of World War haze
sought bonus since early 1920s.
scoring first pictory NTH creation
of adjusted compensation certif-
Gates in 1924, payable in 1915. In
recent years fight has conferred on
settlement OF 1915 obligation. Leg
islation expected to gain final ap-
propal tomorrow Mould effect cash
settlement after June IS, 1886.
Sharp argument over possibility Of
new taxes or of imitation spread in
Congress yesterday as a prelude to
the apparently certain Senate over
throw of President Roosevelt's bonus
veto.
The baby bond measure, presenting
the Government with a bill for 81
49l 600, 900, will be brought up forth
with in the Senate tomorrow for
tive leaders predicted almost as sharp
a reputation of the Executives veto
as the 324-to-6l House overthrow.
Majority chiefs on both the House
and Senate sides definitely moved.
however, to build a backfire against
talk of new levies to foot the bill.
Harrison mot Called In.'
Chairman Harrison, Democrat, Of
Mississippi of the Senate Finance
Committee, one of the authors of the
bond bonus bill, replied to reports that
the President and his aides had some
tax proposal in mind with a prompt
comment that they haven't called
me in"
Harrison, one of the staunchest ad-
ministration supporters in the Senate,
reiterated that he would vote to over
ride" President Roosevelts veto Of
the bonus bill.
Speaker Byrns paralleled Harrison
in denying knowledge Of any down
town" tax suggestions, adding his view
that there was little possibility of
new income taxes. He felt the income
tax base should not be lowered and
that taxes on higher brackets bring
less money than commonly thought. :"
Questioned about any possible al
tentative tax, the white-haired
Speaker simply said:
ASK Morgenthau"
Imitation Talk Widespread.
Few of the leaders joined in the
talk of imitation 1t was widespread.
nevertheless, with several plans ad-
vanced, and with one segment of the
inflationary bloc planning a concerted
effort when an appropriation measure
is advanced to pay the bonus. Some
have indicated bonus money bill will
be attached to one of the regular ap-
preparation measures.
One high Capitol authority, who
declined to be quoted by name. went
even further. He predicted the money
question should be thrust up as a
campaign issue.
Il am satisfied" he said, that the
administration is content to initiate
the Governments credit $4,000, 600, 600
20 pay It off. but it is likely to wind up
with this currency expansion issue
being carried into the coming cam
paign."
c. Of c. Expresses Dismay.
Entering the discussion. the Cham
Der of Commerce Of the United States
expressed dismay at the outlook in
the face of the bonus and other pos
sible ortlays which it Jumped into the
phrase of huge new prospective ex-
penditures."
Such OUTLAWS, the chamber said in q
periodic summary. were mot contem-
plated in the Presidents budget" ano
look disquieting. particularly as they
begin to appear when the hope hao
been that the expenditure trend would
be downward.
las result, therefore, earlier off,
cial assurances of balanced budget
and more recent administration prom
ises Of decline in spending are OBJ.
viously hopeless of fulfillment despite
the fact that business has improved
bringing increased revenues. and that
requirements for unemployment relief
are gradually lessening."
New Taxes Held Inevitable.
The Chamber of Commerce con-
c1,Ided with contention that "neu