INFLATIONARY CRISIS

Hawke's Bay Tribune, Volume XXV, Issue 124, 11 May 1935, Page 8

INFLATIONARY CRISIS

U.S. Veterans Bonus Bill Agitation WASHINGTON, May 9. The Administration faces something of a crisis, paper money inflationists having begun a drive to pass the Patman Greenback Bonus Bill. A great campaign is being organised behind the scenes, with indications that the House of Representatives is likely to pass the measure. President Roosevelt called Mr Morgenthau, Secretary of the Treasury, and the administrator of veterans’ affairs, Mr Hines, into an emergency conference, apparently to work out a plan to prevent over-riding his veto or to formulate a substitute measure. In face of the promised veto by President Roosevelt, the Senate on Tuesday joined the House of Representatives in voting for cash payment of the soldiers’ bonus by a 2,000,000,000dollar issue of new currency. BUSINESS STABILITY New U.S. Bank Reform Bill WASHINGTON, May 9. The House of Representatives by 271 votes to 110, passed the Administration’s Bank Reform Bill, giving the Federal Reserve Board central banking powers. The full measure, which now awaits Senate action, permits the board to fix the reserve that member-banks must maintain against deposits and directs the board to use its powers to promote business stability. NAVY APPROPRIATIONS Largest for Many Years • WASHINGTON, May 9. The Senate Appropriations Committee reported the Navy Appropriation Bill to the Senate after restoring 23,380,000 dollars for beginning the construction of 24 new replacement ships which the House of Representatives reduced by half. The Bill carries a total of 459,606,840 dollars, the largest for the navy for years. A total of 530,600 dollars was added for the operation and maintenance of aircraft.