Economy Bill

Reduce all Civil War pensions 10%.

Repeal all Spanish War pension laws.

Repeal all World War compensation and allowance laws.

Create four groups of pensioners: 1) veterans disabled in military service; 2) veterans totally and permanently disabled in civil life; 3) widows and orphans of veterans dying as the result of military disabilities; 4) widows and orphans of all veterans in service before 1917.

Fix disability pensions at from $6 to $275 per month, death pensions from $12 to $75.

Authorize the President to classify all eligible pensioners and decree the payments to each.

Set Nov. 11, 1918 as the end of the World War, thereby outlawing "military service" after that date.

Reduce Congressional salaries from $10,000 to $8,500.

Authorize the President to cut all Federal salaries, civil and military, up to 15% by means of a "cost-of-living" yardstick.

No sooner had Congress passed his emergency banking bill last week than President Roosevelt executed his second bold stroke in two days by asking it to enact such breath-taking proposals. His demand in a special message for "courageous, frank and prompt action" was predicated upon the necessity for balancing a budget more than $1,000,000,000 out of plumb. His economy reforms were designed to save at least half that sum. The measure giving him dictatorial power over veterans' expenditures and Federal salaries was entitled: "A Bill to Maintain the Credit of the United States."

For 14 years Congress has bowed fearfully before the most potent organized minority on record--the War Veterans. The lobbies of the American Legion and the Veterans of Foreign Wars whipped through the Bonus (1924) and forced its part-payment (1931), both over Presidential vetoes. Spanish War pensions were upped and widened. The presumption date whereby veterans could legally attribute any ailment to World War service and thus draw full military compensation kept moving forward through the years. Finally a browbeaten Congress voted to compensate all veterans disabled in civil life, with pensions for all widows and orphans of all veterans as the next objective. The cost of these accumulating pension payments passed the $900,000,000-per-year mark--nearly one-quarter of the Federal budget.

President Hoover's soft-voiced pleas to purge the pension rolls fell on deaf ears at the Capitol. Special Congressional committees investigated only to report disagreement and deadlock. The National Economy League took the field in response to widespread sentiment against nonmilitary disability allowances. But the thumbscrew tactics of the veterans' lobbies blocked all legislative action.

What a House & Senate majority could or would not do in the way of specific pension reform President Roosevelt was now ready to undertake if given full power. Gladly would he become the "whipping boy" (his word) for the veterans, thus letting timid members of Congress pass the blame to the White House. His proposal amounted to sweeping the whole patchwork pension system aside and starting afresh on a merit basis. Those with real War hurts would be fully cared for--but not malingerers. If a veteran was so permanently and totally disabled in civil life as to become a public charge, the Government would help him--but no other.

The President's economy bill reached the Capitol before the veterans' lobbies could get into action. House Democrats promptly caucused, with their leaders bent on pledging their huge majority solidly for the measure. But, as always, pensions spawned mutiny. Tennessee's hulking Browning, A. E. F. field artillery captain, induced the caucus to adopt an amendment prohibiting the President from discontinuing a single pension now on the rolls and limiting his cuts to 25%. For the moment Speaker Rainey and Leader Byrns had lost their grip on their party, for the Browning amendment practically nullified the bill's purpose. If the caucus had bound itself to that proposition, President Roosevelt would have been ditched by his own House. But it takes a two-thirds caucus vote to bind. The party leaders, no greenhorns, skilfully shifted their objective, mustered more than the one-third necessary to send every Democrat marching out of the meeting free to vote as he chose.

House debate was limited to two hours. Excerpts:

Mississippi's Rankin--This is no time to make the veteran bear the brunt of this depression.

Massachusetts' Cannery, A. E. F. veteran--When we went across they said there was nothing too good for us. Now they're going to tear the heart out of us.

Texas' Patman, veteran--The country is in good financial condition. . . . The Morgans, Millses and Mitchells will benefit by such legislation.

Kentucky's Brown--I'm a veteran and the rank & file of veterans don't want you to repudiate the President in their name. If he is to be shot down, I hope the fire doesn't come from the Democratic side.

Virginia's Woodrum--When the Congressional Record goes to President Roosevelt tomorrow morning and he looks over the roll call, I warn you Democrats to be careful where your names are found. This vote is the test of loyalty. [Loud boos & hisses.]

New York's Snell, Republican Leader--I'm not going to throw a monkey wrench.

Before the final vote only one motion was in order--to recommit the bill. Here again the House leadership demonstrated its parliamentary skill. By prearrangement Representative Connery rose to move to send the bill back to committee without instructions--that is, to kill it. Also on his feet was Representative Browning with his eviscerating amendment as the recommittal instruction. When he began to talk of the caucus' approval, Speaker Rainey sat him down hard. Representative Connery was recognized and his motion overwhelmingly beaten. To show up weaselers and establish a "loyalty-to-the-President" record, Representative McDuffie demanded a roll call vote.

The bill was passed, 266-to-138. Ninety-two Democrats deserted their President, 69 Republicans gave him non-partisan support. The Speaker, who rarely votes, asked the clerk to call his name, answered, "Aye." New York's Cullen, the new assistant majority leader, voted against the bill and his President--a vote that brought to the White House a prompt apology and repudiation from Cullen's local leader, Boss John H. McCooey of Brooklyn.

Proudest boast of Lobbyist John Thomas Taylor of the American Legion has been that at his command 100,000 imperative telegrams can be rained upon Congress from Legion posts throughout the land. Last week he turned that deluge loose upon the Senate but it failed to dampen that body's ardor for the economy bill. Democratic leaders were confident the Senate would pass it after a few days debate. Two opponents who promised to make themselves heard:

Indiana's Robinson--These veteran benefits represent vested rights that have been granted by Congress and only Congress can take them away. . . . Americans want no dictator.

Louisiana's Long--I didn't go to War but they haven't compensated the people who did go. Talk of balancing the Budget! Let them balance it by scraping a little off the War profiteers' profits.

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