Evening star., 1936-01-14
Government Must Raise
S11,O00,0 900, 900 in Next
1712 Months, Secretary
Tells Senate Group.
SECRET DISCUSSION
REVEALED BY COUZENS
Michigan Senator Says Treasury
Head Offered No Protest and
Couldn't Tell" When Asked,
if Payment Was Too Great a
Burden to Be Assumed Now.
BACKGROUND

Agitation for neto settlement In
longtime issue Of bonus dtodrd to
World War UeterGns got early start
in present congressional session.
Before opening. three principal uet-
eranS' organizations announced
agreement on single measure for
immediate cash payment. On first
day such bill ipds introduced in
House and approved last Friday.
one iDeek later.
MednDhile, Senate Finance
Committee considers compromise
bill for payment in baby bonds"
Yesterday same peterdns' groups
announced approval OF compro-
mise.
President Roosevelt uetoed in
fationary bill last year; has made
no comment on pending measures.
BY the Associated Press.
Despite testimony by Secretary
Morgenthau that the Government
would have to raise a minimum of
sl1 900, 10000 in the next 17R
months, the Senate Finance Commit
tee today approved the new baby bond
bonus payment bill by 15-to-2 vote
Senator Couzens, Republican, of
Michigan, who, with Senator Gerry,
Democrat, Of Rhode Island were the
only members opposing a favorable
report, disclosed Morgenthau's testi-
mony which was given in executive
session. Couzens said he would not
be bound by any secrecy.
The Michigan Senator said the
Treasury Secretary took no stand one
way or the other on the bonus measure
and replied he couldn't tell" when
asked il the Treasury could stand
the added burden of bonus payment.
$4,000, 100000 for Relief.
Couzens further quoted Morgenthau
as saying that the $1l,000, 100000 of
funds needed for the rest of this fiscal
and the next fiscal year included an
estimate of $4,000, 900, 900 for relief
mot included in the Presidents bud
get); $500, 900 900 which the Presi-
dent estimated as next years deficit;
$4,000, ,000, 900 If the bonus Is paid, and
s5,800, 100000 of refunding operations
Couzeus said Morgenthau estimated
this would bring the public debt to
$35, SOC, 900, 900 by the end of next
fiscal year.
Chairman Harrison announced the
vote and said he would try to get
Senate confederation Thursday. Those
voting for the favorable report were:
Democrots-George, Walsh, Barkley,
Gore, Costigan. Bailey. Clark, Loner-
gan, Black, Guffey and Harrison; Re-
publicans-Keyes, Hastings and Cap
per; Progressive-La Toilette.
Substitute Voted, 1870.
BY vote of 18 to the committee
substituted the Senate bill for that
passed last Friday by the House, which
provided for full cash payment of the
certificates, but specified no method of
Secretary Morgenthau, Daniel w.
Bell, acting budget director, and OFF,
GERS OF the three veterans organiza-
tions which are united behind the Sen
ate bill appeared before the committee
in executive session before the final
vote was taken.
I'm sorry, you'll have to see Har-
rison," Morgenthau told reporters after
the meeting.
Harrison refused to divulge Nor
genthau's testimony, but Congress was
not so reluctant.
The bill was approved without
change, Harrison said
Senators not present when the final
vote was taken were: King, Byrd and
Connally Democrats, and Metcalf.
Republican.
Passage This Month Seen.
Senator Robinson, the Democratic
leader, predicted the coalition bonus
bill would be enacted before the end
Of January.
"It is my thought" he said, ''that
action will be taken during the present
month and that the subject will be
disposed Of in satisfactory way"
Robinson made this statement on
the way to the White House to keep a
(see BONUS. Page S.