Evening star., 1922-04-26
Reports House Bill Had Been
Abandoned Are Brand
ed as Untrue.
Ex-S0LDIERS REFUSE
PROPOSAL BY SMOOT
Seven Vital Points Taken Up in
Informal Talks-HoW to Raise
Funds Not Mentioned.
BY DAVID IAWRESCE.
BY DAVID LAWRENCE;


Negotiations between the American
Legion and the Senate finance COM
mittee are proceeding satisfactorily,
but the reports of an abandonment
of the House bonus bill are untrue.
The suggestion of Senator Smoot that
paid-up insurance policy be given
AS substitute for adjusted COM
pensation certificates has been de-
cliEed by the legion. 1t was Mr..
Smoots own proposal and not that
of the finance committee.
I'VE have neither abandoned the
House bill nor agreed upon any sub
stitute,' said Senator McCumber,
chairman of the Senate finance COM
mittee. to this correspondent today
Inquiry at American Legion head
quarters disclosed the fact that with
the exception of a few minor details
there is virtually no change in the
position OF that organization which
is insisting that the House bill be
adopted.
Chief Points in Proposals.
The fundamentals in the new pro-
posals made by the Senate finance COM
mittee in its informal talks with the
American Legion are substantially
these:
First. the House bill provided that
payments in cash be made in October
i922, and the Senate wants to make
It three months later-January, 1923.
TO this there is no objection on the
part of the legion.
Second. there has been suggested
limit heretofore on the time the SOL
dier could make his application for
any of the five ways of receiving a
bonus, and the Senate committee pro-
poses the elimination of the time
limit, which, of course, satisfies the
legion.
Third. The House bill provided tba.
II the number of days a man served
entities him at the rate of 81 or Sl25
depending upon overseas duty) to
a total of $50 he shall receive cash.
The Senate suggested that the total
cash be raised to 500. To this raise
the legion does not agree, because
the outlay under the House bill would
be about $16.000.000, while it might
cost 100000 under the Senate
plan. The legion is anxious that the
immediate cash outlay shall not
prove an embarrassment to the gov
ernment and believes the House bill
is the better.
Fourth. The Senate committee pro-
poses also that even If the total due
an ex-service man amounts to slO0
or less, he shall be privileged to
choose the adjusted certificate plan.
This, of course, does not displease the
American Legion.
Funds for Homes and Farms,
F1fth-Aid in the purchase of a home
or farm as covered in the House bill
would enable a man with $500 due
n fraf hat
mortgage. The Senate committee sug-
gests that $500 be the limit and that
the payments be made in instalmants
of $500 a year beginning January, 1929.
The American Legion feels the total
amount should be advanced at once SO
that it can be more useful, as many
homes can be bought by the payment
of $500 down.
SiXth-The Senate committee has pro-
posed that as an incentive toward the
taking Of the certificate plan, twenty
five per cent be added to the total
amount On the face of the certificate.
this being the equivalent of four and
one half per cent interest compounded
in twenty years. But the American
Legion counters with the suggestion that
it be made 40 per cent, arguing that this
WAS lIlt IN The Dill
which was twice reported favorabIy by
the Senate finance committee and which
passed the House a year ago.
Seventh. under the House bill the
loans upon certificates would be made
at the banks. The Senate committee
would permit service man to borrow
from the government 25 per cent the
first year. 80 per cent the second year
and 80 per cent during the third year,
increasing per cent each year until
it natures. The borrowers would, of
course, pay 4 u per cent interest. The
American Legion hasn't taken sides
in this phase of the matter, but it is
apparent that government financing
would mean an administrative eN-
pense while borrowing from the banks
wouldn't add to the government
cost, so, naturally, the Legion proba-
bly, would prefer the borrowing to be
done through the banks, as proposed
in the House measure.
Whils some members of the Amer
ican Legion, who came from INDUS
trial communities, are not particular
ly interested in land settlement, there
are thousands of eX-service men from
the west who want II. The American
Legion convention went on record in
favor of five ways of compensation.
and one of these was reclamation. so
il is difficult for the American Legion
leaders to agree to eliminate reclama-
tion. though it would not be surpris-
ing If the Senate committee finally
did SO.
Senate finance committee that III
wants to see made as attractive as
possible the productive features of
the bill, and for this reason recon-
mends that home and land aid and
the twenty-year certificate be made
worth 40 per cent more than the
amounts due if certificates of credit
are selected by service men. Similar
Iy the vocational aid plan, as en-
braced in the House bill, is preferred
AS to the financing of the cash
features of the bill, the legion main
tains that it should not suggest to
Congress the way the revenue should
he raised The Senate committee has
proposed that amounts obtained from
foreign governments on the war debt
shall be used to finance the bill. The
legion men understand that the Brit
ish government will pay its interest
this year, and that when part has
been applied to sinking fund the re-
mainder can be used by the Treasu{E
for general purposes, and this woule
include the obligations of the bonuo
act.
Copyright. teo4.l