The Birmingham age-herald., 1922-03-08
BONUS MEASURE WIT H BANK LOAN FINALLY APPROVED
Passage of Measure Seen by Fordney, With Members of House Sharing in View
 Generally
By Associated Press

bank loan provision Tn place o1 the cash installment payment plan originally proposed and once ap- proved by the House, finally was agreed to today by republican rhem- bers of the ways and means commit tee. It was introduced later in the House by Chairman Fordney, who announced that it would not be called up until next Monday, if then.
 Passage of the bill was predicted by Mir. Fordney His opinion sp- peared to be shared by members of the House generally, some of whom said that on the final vote. party lines would disappear. There was some speculation in House lobbies and corridors as to President Harding's s views of the compromise plan and also as to whether he would find oc- casion to express those views before the House voted.
 President Undecided
 Chairman Fordney still declined to say whether he had discussed the compromise with the executive. At the White House it was said that Mir. Harding had not studied and con sequently had not formed an opinion as to the bank loan provision. He was represented, however, as main taining the same position that he did when he wrote Mr. Fordney on Feb ruary 16, that the bonus either should be paid by a sales tax or the legis- lation postponed.
 Some of the majority members of the committee believe that since the new plan defers. for three years any large drain on the federal treasury the President will not object to it. They say the compromise will enable needy veterans to obtain cash with out the necessity of imposing ad- ditional taxes on the general public.
 Just when the bill will be called up in the House will not be decided until after MT. Fordney returns from a trip to the west on which he started late today Should the bill be talk en up on Monday. the House would pro ceed to it's consideration under a suspension of the rules which would prevent amendment If taken later, ssAIr. aF ardney said. there would have Co be a special rufev d was expected that this would be so drawn as to give precedence to committee amena- ments, designed to prevent the open ing up of the bill of general amend ment.
 Whole Committee to Meet
 Mir. Fordney said the entire ways and means committee would meet on Saturday when the democrats would have an opportunity to pass judgment on the bill. In the meantime the measure will be printed so they and House members generally can study it's provisions.
 Aside from the substitution of the bank loan provision for the cash payment plan, the bill as introduced is very similar to that previously passed by the House. The only i'm. mediate cash payments proposed are to veterans whose adjusted service pay would not exceed $50. Other veterans could select one of these four options:
 Adjusted service certificate, com bining a loan and insurance plan.
 Vocational training.
 Farm and home aid.
 Land settlement
 May Cost Billions
 The ultimate cost of the bonus to the government would depend upon the number of men selecting each of lhe options. It was estimated that the cash payment to those entitled to more than $50 each would be around Sl6,000,000. The final cost might range all the way from s1 ,000, o00, 900 to s4,75O. 100000. the maximum figure being predicated upon all of the vet erans selecting certificates and hold ing them until maturity or until their death.
 The adjusted service certificat te would be dated October 1, 1922; would mature in 20 years or at the death of the veteran. and in either case, would have face value equal to the sum of CD the adjusted service credit of the veterans, increased by 25 per cent plus CD interest thereon for 20 years at the rate of 4h per cent compounded annually. The total amount would be approximately equal to 3.015 times the adjusted ser vice credit of the veteran
 Figured on Daily Basis
 This credit would be figured on the basis of S1.25 for each day of overseas service and s1 for each day of home service, but in no event could the credit exceed $500 in the ca of veteran who performed no over seas service, and s625 in the case of a veteran who served overseas
 Prior to September 30, 1925, any national bank, or any bank or trust company incorporated under the laws of any states, territory, possession or the District of Columbia, would be au- thorized to loan to veteran on the certificate any amount not in excess of 50 per cent of the adjusted ser vice at interest at 4 per cent from October 1, 1922.
 The loan would have to mature \ not later than September 80, 1925 and the rate of interest charged by the bank could not exceed by more charged at the date of the loan for the discount of 90 days commercial paper by the federal reserve bank in the federal reserve district in which tre bank is located.
 Government Would Pay
 If veteran defaulted in the pay ment of principal and interest to the bank for six months after matur- ity of the loan the bank would be required to present the veterans note and certificate to the treasury not earlier than May 30 1925, ande not later than October Is, 1925, and the government would cash the certifi- cate. The bank would be paid the principal and interest up to date of payment by the government and the veteran, if living, or, if dead, his ben eficiary or his estate would be paid the difference between the amount paid and the bank and 80 per cent of the loan value of the certificate al the time of it's receipt by the treasury
 After September 30, 1925, the gov ernment would make loans directly to veterans on the certificates. From that date to October 1, 1928, the maxi mum amount of such a loan would be l2s ner cent of fha sux,u f,f fha adi,.af a d