Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-03-04
Bonus PLAN GUT
HALF A BILLION
IN ITS PLUS PAY
Feature Reduced From
40 Per Cent to Is in
Unanimous Outline.
Ultimate Cost to Gov
eminent Estimated as
$4,000, 900, 900.


agreement on compromise soldiers
bonus bill along the. general lines out
lined officially Thursday was reached
Friday by house ways and means com
mittee republicans, who believe they
have found solution of the problem
which has been giving administration
and congressional leaders concern for
several weeks. The revised measure,
however, still has a long road to
travel before it reaches the statute
books.
As now drawn, the bill provides for
cash payments to those men whose ad-
justed pay would mot exceed 500, and
these four optional features:
Adjusted service certificates with an
added loan provision which would en-
able the men to obtain Immediately
from banks sum equal to SO per cent
of the adjusted service pay; vocational
training, home and farm aid, and land
settlement.
Congressman Bowers Plan
In working out details of the GER
tificate loan provision, which was sug-
gested originally by Representative
Bowers, republican, of West Virginia,
the majority committeeman reduced the
face value Of the certificate which
would be the amount of the adjusted
service pay plus % per cent. plus in
terest of Az per cent, plus the in
terest as originally proposed. 1t was
thought this would result in saving
to the government up to possible
maximum Of half billion dollars.
Limit on Bank Interest
Banks in making loans ON the GER
tificates could not charge an interest
rate in excess Of per cent above the
rediscount rate charged by the region
alfederal reserve bank ON 9O-day paper
in the district where the loan was
made, and they could not make the
loans for q period in excess Of three
years from the date of the certificate,
which would not be rediscountable by
federal reserve banks.
If the loans had not been repaid on
September 80, 1925, the banks could
make demand on the government for
the money due. The government, it
was stated. then would cash the GER
tificate. pay the bank and turn the
remainder over to the service man.
The, cash surrender value Of the GER
tificate on that date would be. So per
cent of the adjusted service pay. plus
interest at AZ per cent compounded
annually from the date of the certifi
cate. This also would be the loan value
for federal advances as of that date.
Find Easier Way to Get Funds
Committeeman said it was not pos
sible to estimate how much money the
government would have to advance on
and after September 30. 1925, as this
would depend first upon the number
of men electing to take certificates and
second upon the number borrowing
from the banks and tefaulting in pay
ment or borrowing directly from the
government.
-Tt is hoped and believed" said
Chairman FOrdney. in formal state
ment. ''that when these insurance GER
tificates become due and payable. the
money may be secured by the sale of
pronerty and securities owned by the
federal government and without any
special charge on the treasury. This
plan seemed to meet with the general
approval of the members of the house
Of Representatives as we'll as the pub
lie generally ,-.
Few Details to WORK Out
Some members of the committee
estimated that if all the men took
certificates and held them for full 90
year period. the ultimate cost Of the l!
bonus would be approximately $4,000
100000. Tfey thought. however. that
this sum would be reduced by perhaps
n billion dollars or more through bor-
rowings or forfeitures.
A few details of the revised plan
still remain to be worked out by the |
majority committeeman. it was said. |
but the expectation is that the new bill !
will be ready for consideration by the /
entire ways and means committee next |
Tuesday.
IL favorable report on the meas
ure is ordered and that virtually is as
sured, week may elapse before the
bill is presented to the house. It was
explained that it was desired to give
representatives ample time to study the
details before house consideration is
hoOun