The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-02-01
PATMAN GROUP
GAINS IN FIGHT
FOR INITIATION
House to Face Issue First
on Frazier-Lemke Bill,
Is Indication.
THOMAS PLEDGES HELP
5 Billions for Bonus, Farm
Mortgages Are Involved in
Expansion Drive.
By United Press

WASHINGTON. Feb. IA House
fight to authorize $5,249, 900, 900 in
currency expansion gained strength
today with the prospect that the
issue would first be presented in a
vote on the $3,OO0,OoO,o00 Frazier
Lemke farm mortgage imitation bill.
At the same time the House in
f1ation bloc voted full support to
drive to pay the $2,249,OO0 900
bonus costs by inf1ationary meth
DDS.
Senator Elmer Thomas Cd.
Okla) promised the Senate infia-
ticn bloc would come to their as
Sistance.
Speaker Joseph w. Byrns re-
vealed that the Frazier-Lemke
light may reach the floor first. A
petition to force House vote on
the issue today hit a new peak of
215 names, only three short of the
number required to bring the
measure to the floor.
Speaker Byrns said this probably
meant the House would come to
grips with the imitation issue in
connection with the Frazier-Lemke
proposal before any bonus pay
ment plan is brought up.
Patman Bloc Maps Strategy
Representative Wright Patman
Cd, Tex called in As members of
his imitation bloc to prepare tactics
in campaign to substitute imitation
for taxes which the Administration
may propose to amortize bonus costs.
The Patman group, strengthened
by attendance of many Frazier
Lemke supporters, adopted a reso-
luton affirming belief that the
bonus should be paid Gin currency
new money, backed by the credit of
this government and its metallic re-
serves"
1t also declared against new taxes.
Representative Patman, said the
question of expansion to meet the
new farm program expense was not
discussed because "the meeting was
the elimination of our old fight to
get the bonus paid"
Greenwood Explains Stand
Representative Arthur H. Green
wood Cd, Ind who insisted that
the program was mot a greenback
Issuance" since it is simply an ex-
pansion against gold and silver re-
serves in the Federal Treasury, said:
IF we went into farm payments"
he said, I'VE would open an unlin-
tied field of other types of mortgages
running into billions of dollars. We
know that the bonus payment is a
fixed sum around $2,500,00O 600 and
thus the issuance is controlled"
Administration plans we're be-
lieved to call for approximately
$500, 100000 in substitute farm taxes
to replace processing levies in addi-
ton to an effort to recover some
5000, 100000 in impounded processing
taxes, probably through retroactive
legislation.
Hold New Taxes Unnecessary
Bonus amortization would add
from $200000,000 to $250,000, 900 to
the tax bill, it was estimated.
Mr.. Byrns suggested that "the
chances of putting over currency
expansion for the bonus probably
would be hurt if the Frazier-Lemke
bill is considered first because the
House would be called upon to vote
$4,000, 100000 even before consid-
ering the bonus"
Inere are more names than
like to see,' he said, referring to
the Frazier-Lemke petition.
He said some members of the
House Ways and Means Committee
felt that it would not be necessary
to issue taxes to pay the bonus now.
AssaiIed as Fiat Money
He characterized the Frazier.
Lemke proposal as issuance of fiat
money" and explained that the
$4,000, 100000 would pay only one
third of the farm mortgages, posi-
bly, opening the way to an ulti-
mate $4,000, 100000 program, if app
proved.
Mr.. Byrns added that many men,
bers of the bonus bloc signed the
Frazier-Lemke petition and that If
an apr ropriation for the bonus Is
made the dependent Offices appro-
priation bill, now before the Senate,
is the place for it."
The S5,249, 100000 total of pros
pective infiationary measures Is
reached through addition of the
s2,249, 10000 bonus cost to the So
000, 100000 F,razier-Lemke measure.