HEAVY DEFEAT OF PRESIDENT

Timaru Herald, Volume CXLI, Issue 20326, 27 January 1936, Page 7

HEAVY DEFEAT OF PRESIDENT

VETO IGNORED BY HOUSE DOLLAR SLUMPS IN UNCERTAINTY United Press Association —By Electric Tel egraph—Copyright (Received January 26, 6.30 p.m.) NEW YORK, January 24. With the Government’s fiscal situation steadily appearing more complicated, and rumours persisting of some new monetary move being considered in Washington, the dollar fell heavily in the foreign exchange markets to-day. Sterling advanced to 5.021, the highest since September, 1934, and the franc was quoted at 6/68. Government bonds are universally lower in Washington. President Roosevelt sent to Congress a 100-word message vetoing the veterans’ bonus payment, but within twenty minutes of receipt of the message, the House of Representatives over-rode it by an astounding vote of 324 to 61. This is the worst Legislative defeat President Roosevelt has thus far received, and indicates a similar defeat in the Senate, when it is convened on Monday. Under the scheme to pay the bonus by “baby bonds,” the United States Treasury will probably be forced to raise 1,500,000,000 dollars within a few months to cash the bonds for veterans wishing to secure the money. Heavy Treasury financing is also likely to pay for the Agricultural Adjustment Administration contracts and other purposes. At a press conference to-day President Roosevelt lightly pushed aside the questions which were asked regarding the fiscal situation, and refused definitely to deny or confirm that any new moves were planned.