U.S. CRISIS

Hawke's Bay Tribune, Volume XXIII, Issue 77, 13 March 1933, Page 7

U.S. CRISIS

ROOSEVELT’S SECOND BLOW I CUT IM VETERANS’ COSTS. BIG FIGHT AHEAD. (Received 13, 11.15 a.m.) Washington, March 11. His second attack on the United | States economic crisis found the Pre- ■ sident calling on Congress for author, ity to effect a 500-nulliou dollar slash in veterans’ costs and Government salaries, and his swift-developing emergency programme brought forward a proposal for a 500-million dollars bond issue to be used in employing approximately 500,000 men in internal improvements. The cut in the veterans costs would amount to between 330 million and 400 million dollars from the present annual billion dollars. Senators and representatives have been deluged with telegrams of protest from veterans’ organisations, and a big fight looms ahead, but the Democratic leaders expressed confidence that the President would win out. The President asked Congress yesterday for authority to reduce veterans’ compensation and Governpient salaries, to take effect immediately. Pointing to the prospective Treasury deficit this fiscal year of 1200 million dollars, tho President demanded emergency action for balancing the Budget. “The very stability of our Government itself is concerned,” he told Congress, “and when that is concerned the benefits of some must be subordinated to the needs of all.” Permanently and totally disabled veterans are not likely to be touched, nor veterans whose disability is traceable to service origin, but thp President would be given full authority to fix rates of compensation for all the thousands of other veterans not in these classifications, but receiving allowances. Following the President’s economy message to the House of Representatives, the Democratic leaders arranged to bind their preponderant majority in the caucus to get the Bill through by Wednesday if possible. The Democratic membership of the House, however, refused m caucus to be bound to support the Bill. Mr Roosevelt to-day decided to withhold indefinitely his special message recommending a bond issue and enlisting 500,000 unemployed into camps. The House rallied behind Mr. Roosevelt this afternoon to pass his Economy Bill, Republication support more than making up for Democratic defections on the legislation. The voting was 262 to 138. The decision followed a twohours’ sharp debate in which both parties split, a stormy fight centring on the proposals to reduce expenditure on veterans. The Senate Finance Committee favourably reported the Bill with a few minor changes, but the Senate Democratic leaders decided to postpone calling the Bill until next week. The prospect in the Senate is doubtful in view of the apparently increasing opposition promoted by the veterans’ and Labour organisations. There are indications that the farm leaders will ask Mr Roosevelt to beI come a “Farm Dictator” in order to i cope with the emergency in agricul- | ture.