The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-03-09
Unanimous Agreement j
Reached for Adjusted
Compensation for Men
BANKS TO AID WOR.
Adjusted Service Certificate
to Be Issued and Men Ben
Gifted Can Borrow on Them.
tBy Associated Pres, Leased Wire,

tBy Associated Press Leased Wire.l
Washington, D. C. = Unanimou
agreement to eliminate the cash fea
ure of the soldiers bonus except in tn
case of men whose adjusted service pa
would not exceed fifty dollars, was re
ported today by the special sub con-
mittee of Republican members of tn
House Ways and Means committee t.
which the whole bonus question wa
referred yesterday.
In lieu of cash for the other servic'
men it was agreed to add a new prov
sion to the bonus bill under which tn,
men accepting adjusted service certi
ficates could borrow Immediately 0.
those certificates from banks a SUI;
equal to fifty per cent of the total ad
justed service pay computed at the rat
of $1.00 day for domestic service an,
$1.25 day for foreign service.
Issue Official Statement.
An official statement of the agree.
ment of the sub committee was ISSUED
by Chairman Fordney. The agree
ment provides:
"The elimination of the cash feature
of the bonus bill where the veterans
are entitled to more than $50 adjusted
service pay, but adding a new loan pro-
vision to the adjusted service certi-
ficate title which will enable holder.
of such certificates to borrow from
any national bank or trust company
incorporated under the laws Of any
state, fifty per cent of the sum of the
adjusted service pay prior to Septem-
Der 30, 1926. This date was fixed be
cause after that time the bill as
originally drafted by the committee
provides for larger percentage of
loan by the government and has not
been changed by the sub committee"
Expected to Gain Approval.
Chairman Fordney said this plan
was expected to meet with general ap-
proval since it enabled the soldiers
who may be in need to obtain cash i'm
mediately after the issuance of the
certificates; would relieve the treasury
of any large cash payment during tn
enormous refunding operations viii,
must be carried out in the next IT,
years and would place no additional
tax burden on the public.
Many details of the proposed amend
ment to the bonus will remain to be
worked out and Mr.. Fordney said it
probably would be a week before the
plan was ready for submission to the
entire Republican membership of the
committee. He declared there would
be provisions regarding the rights Of
the holders of the certificates and linn
ting the amount of interest which the
banks could charge for the loans.
Governor Harding of the federal re-
serve board was before the sub commit
tee today discussing the interest and
other questions. 1t was suggested that
the interest rate should not exceed
figure greater than two per cent
above the re-discount rate of the re-
gional reserve banks.
Men to Keep Title.
Under another tentative provision
being considered the title to the Ger.
CUuiQ uOL ne ujS@PRss-f3 - ~"
the service men. The loans could be
made only by national or state banks
and trust companies, the idea being Mr..
Fordney explained, to prevent the Ger
;ifcates falling into the hands of LOAF
sharks. If the loans advanced by the
banks were not paid by the service
men on October 1, 1925 the banks
could make demand on the treasury for
The amount due by the service men
,lus interest at what would be made
he legal rate in the law.
Before obtaining any money from
he treasury the banks would have t.
submit affidavits that they had not
charged more than the legal rate of
interest. Where greater charge was
made penalties would be provided.
It was explained that the $50 cash
payment was retained in the bill be-
,ause the men entitled to only this
mount undoubtedly would prefer the
lash to twenty year certificate. II
vas estimated that the cost to the
treasury in paying this amount would
be around $16,000.00o.