Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-12
BOND ISSUE
MAY PROVIDE
BONUS FUND
u. S. Will Consider
British Security
Offering.
J PLAN LOOKS GOOD
Proposed System Also
Seen as Business
Remedy.
BY !. BART CAMPBELL.

WASHINGTON, Jan. 12.-Four
billion dollars worth Of British gov
eminent bonds, underwritten by the
United States Government, will pro-
vide for the soldiers bonus" if the
present plan Of Administration lead
ers, decided upon today, is carried
out.
Administration leaders are understood
to be prepared TO go before the country
with such q plan intended at once to
take care Of adjusted compensation for
American ex-serVice men, and the British
Indebtedness to the United States
1t is proposed 100000 worth Of Brit
ish government securities, guaranteed by
the United States Government, will find
a ready market i9 this country If offered
for general sale and will lead to an
early and speedy solution of the diff
culties confronting the Administration
relative to the soldiers bonus" and the
foreign debt
AS a practical business proposition,
Administration leaders believe the plan
viii meet with popular approval
Negotiations between the American and
plan for satisfactory readjustment of
the British debt are said to have been
started since the beginning of the present
armament conference
1t is pointed out thai the value of Brit
ish bonds. underwritten by the United
States, could not be over-estimated, and
that if they were placed on sale they
would have a tendency to bring about a
marked Improvement in economic and
financial conditions generally both here
and abroad.
It also Is explained the present plan
for the linking Of soldier bonus" with
the refunding OF the foreign debt was
discussed at considerable length at the
conference which took place Saturday
night between President Harding. Secre-
tary Of War Weeks and Attorney General
Daugherty on one hand, and Republican
leaders Of Congress, who included Sena-
tor McCumber Of North Dakota, the new
chairman of the Senate Finance Commit
;tee; Representative Madden of Illinois.
chairman of the House Appropriations
Committee and Representative Fordney
of Michigan, chairman Of the House
Ways and Means Committee, on the
other
Republican National Chairman John T.
Adams took q leading part in the con
ference, at which it was agreed the issue
presented by the soldiers bonus" and
the foreign debt must be met By the
Republican party IN the coming Con
gressionaI campaign in 2 way that would
prove satisfactory to the American PEG
pie
L it were to be pointed out 70 The
American people, 1t was suggested, the
American public is prepared TO enter
into financial arrangement with its chief
debtor, whereby $4,000 100000 worth of
bonds, guaranteed by the two wealthiest
nations of the world are to be offered
for sale as a means Of overcoming one
of the main obstacles in the way Of
world prosperity, there could hardly be
any reasonable objection to such a plan.
While the President and his advisers
first favored a sales tax, or some other
form OF tax, as q means Of financing he
soldiers bonus" II finally was agreed
the most practicable method Of meeting
the Issue would be acceptance Of the pro-
pOsal that Great Brltains Indebtedness
to this country be turned into bonds,
which underwritten by the United
States, would be sure to proyice ell
necessary funds to finance whatever ex-
service mems adjusted compensation
may have to be provided for
The rate tentatively decided upon for
the bonus was $1.75 a day for each sol
der 1t is estimated fully 2 per cent
Of those eligible for the compensation
viii accept the cash bonus, which would
consume practically an OF the 81. 000, 0O0, 600
raised through the British bond issue
may have to be provided for.