New-York tribune., 1921-03-01
2O-Year Bonus
Plan Will Cost
Five Billions
McCumber Explains, How
ever, That if All Should
Prefer Cash the Amount
Would BeS1, ,547. 9O4, ,393
Yearly Demand Forecast
Senator Contends Interest
on the Allied Loan Will
Cover Entire Obligation

From The Tribuuss Washington Burea.
WASHINGTON. Feb. Ex-senator
McCumber, of North Dakota. explain
'ng the report on the soldiers bonus
bill from the Finance Committee to the
Senate to-day, said that if every vet
cran accepted the cash plan ,ne total
cost would be 1,547 ,904, ,395 Under
the certificate plan. he said, # all vet
Grams accepted it, the total amount III
l943, or twenty years after .he act
took effect, would be S5,251 ,364.907.
These figures were given as the pos
slblc maximum costs. He held that
they did not indicate what in practice
would result from operation of the
aw. AS to what proportion would
favor one plan and what proportion an
other he did not predict.
Senator McCumber predicted that IL
the bill did not pass this session il
would pass next. This led Senator
Jones, of New Mexico, to infer that
passing it this session. This was de-
nied by Senator McCumber. who cx
pressed the hope, in reply to Senator
Jones, that it would pass.
Senator Jones advocated taking up
The bonus bill now, instead of the
naval bill. and expressed the belief that
it could be amended so it would not
burden the Treasury unduly.
Shows Prospective Demands
Referring to the fact that if very vet
cran accepted the cash plan the total
cost would be 81 SAT ,904.395, Senator
McCumber said that of this sum S9G9,
337 500 would need to be appropriated
in 1928, S60O0l4, ,102 in 1924 and $685.
532 693 in 1925.
On the basis of every veteran ac
cepting the certificate plan and MAX
ing all allowances for annual payments
on account of death, the total amount
in 1943 would aggregate S5,251 ,364 ,9O7.
1t would be necessary to appropriate
in 1923, on this basis, S44 .256, ,1S0. This
sum, he said. increases yearly up to
1912, when the amount required would
be S56962 100. leaving all the balance
to be paid in single payment due in
1943 of S4,290 ,280,031.
Senator McCumber offered table
which shows the number of men who
would be eligible for the benefits as
1879 S53, of whom 2,244,S had home
service and 2.435 900 overseas service.
The total cost for home service rlen
would be 1857 ,052,902 and for overseas
men $3.50. .S5l ,493, making total of
ST ,547 ,904.39
The general assumptions" said SEN
ator McCumber that the enactment of
this bill into law will immediateiyly
load upon the backs of an already ex-
cessively taX-burdened public an i'm
mense sum of money is not warranted
'lt will be seen that no payments
whatever Will be required until the
year 1928, giving ample opportunity to
adjust the estimated Treasury deficits
and. by reasonable economy, to meet
the added liability incurred by this
legislation without any increase in
taxation"
Interest on the Allied loan is a
source from which help will be derived
in meeting payments, the Senator said.
"Without attempting the allotment
OF any prospective receipts, but merely
as a suggestion of one means of meet
ing the obligations of this measure, the
committee begs to remind the Senate
that there will undoubtedly be funded
INTO long time bonds the debts due this
country advanced our associates in the
world war; said Senator McCumber.
he interest on these bonds will
probably more than care for the pay
ment required each year And if. by
reason of larger number of applica-
tons for the cash plan than contem-
plated, it is found that such interest
is insufficient to cover the amount due