The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-03-15
FORDNEY WILL SUBMIT FORMAL
REPORT TO SENATE ON THURSDAY
Time for Calling 1t Up in Senate
Will Not Be Set Until Speaker
Gilett Returns.
NOT EXPECTING MESSAGE
FROM PRESIDENT HARDING
Secretary Mellon and ComptrOI-
Ter Crissinger Oppose Adjust
ed Certificate Plan.
(sy The Associates Press


WASHINGTON, March IA favor
able report on the long controverted
soldiers bonus bin was ordered today
by the house ways and means COM
mittee by a vote of 10 TO 8. Chairman
Fordney plans to submit his formal
report tomorrow or Thursday. but
said the time o. calling the measure
up in the house would not be fixed
definitely until after the return here
of Speaker Gillett, who is in Florida,
with President Harding.
Representative Fordney said he did
not expect Speaker Gillett to bring
any message on the bonus from the
executive and that the subject Of the
conference with the speaker would be
the question OF calling UP the bin next
Monday under a suspension of the
rules.
The vote on the measure today in
the committee was taken after Sec
retary Mellon, Comptroller Crissinger
and Governor Harding Of the Federal
Reserve board had been questioned for
two hours in open session as to their
ideas Of the bank loan adjusted GER
tificate plan.
Before the final vote the commit
tee rejected. 10 70 5, an amendment
to impose for a period of three years
a one per cent tax on WHOLESALERS, de-
signed TO raise $500 600, 600 with which
TO finance the bonus.
Under an amendment suggested by
Governor Harding and adopted by
unanimous vote, banks making orig
inal loans on the adjusted service GER
tificates could have those certificates
rediscounted by other banks author
ized to make original loans on the
certificates. Governor Harding OBJ
jected to having the certificates re-
discountable by federal reserve banks,
saying the general economic effect
would be unfavorable.
The committee rejected an amend
ment to restore the original cash pro-
visions in place of the bank loan
amendment and to reimpose the ex-
cess profit taxes as a means Of rails
ing the required revenue. Another
amendment TO restore the wartime
maximum income surtax rate OF 65
per cent also was rejected.
Secretary Mellon and 8Ir. Crissing
er reiterated their opposition to the
adjusted certificate loan plan, but
Governor Harding declined to COM
ment on the advisability Of bonus leg
islation at this time other than to say
that in his judgment the bank loan
plan would help the beneficiary. but
probably not the banks"
There developed difference %
opinion between the treasury secsSt
tary and the comptroller of the cfs-
rency as to advising banks not to
make advances TO former service men
IN the certificates. Mr.. Mellon said
the treasury would not feel called upon
to give such advice. while Mr.. CriE-
singer reiterated that if national banks
asked his opinion he would advise
against loans on such security.
The comptroller said there were
many banks that held an "uHbeliev
able" amount Of past due and doubt
ful paper and that such banks prob
ably could not make the advances. He
said it would take from one TO five
years for the banks 10 work out the
paper to which he referred.
Secretary Mellon expressed the view
that it would be better from an eco
nonic standpoint for the treasury to
borrow in the first instance the $780,
0O0. 900 estimated the banks would be
called upon to advance on the certifi-
Gates in the first three years from the
effective date Of the bill.