The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1922-03-17
VALUE OF
BONUS CUT
Reduction From 4O%o Cuts Ger
tificate Plans Cost S5O0,000,-
600; Main Features Unaltered.
AWARD is ABOUT $1,100.
Insurance to Be Worth Entire Accrued
Value Inmediateiy-lf Man Dies
Day After Getting Certificate,
Beneficiary Collects in Full.

Washington.-The House Ways and
Means subcommittee Topped $5OO,OOO,-
600 off the expected cost of the soldier
bonus under the adjusted service GER
tificate" plan. 1t had been planned TO
add a premium of 40 per cent to the
amount of adjusted service pay due
each soldier, but the subcommittee de-
cided that % per cent prenHum
would be generous enough. This
would still leave the certificate plan
more attractive to veterans than the
original cash proposal.
At the same time it was felt that
the difference between 25 per cent and
40 per cent would mean great saving
to the treasury and probably cause
wider distribution of the cost burden
over the other options, farm and home
aid, vocational training and land set
tlement. In making the change the
subcommittee did not alter the other
elements upon which the value of an
adjustment service certificate would
be computed.
1t was Indicated hat with this reyi-
sion agreed upon there are now only
some technical details to be settled,
with the aid of treasury experts, upon
such angles as The terms of the loan
privileges, rates of rediscOunt and pro-
lection of the titles Of the certificates.
The subcommittee expects to complete
this work by next week and call In
Immediately the full membership of
the Ways and Means Committee, in
Guiding the minority.
The certificate plan, as now agreed
upon UNANIMOUSLY by the Republican
majority in the subcommittee and as
1t will be reported to the full commit
tee, calls for the issuance of twenty
year interest-bearing certificates hav-
ing a loan value as one of the four
forms of bonus offered to ex-service
men. The original vocational train
ing aid," "homa and form aid" and
'1and settlement aid" proposals are re-
tanned. The face value Of the certif-
Gates will amount to adjusted service
pay plus a premium Of 25 per cent
compounded annually for twenty
years. If the amount Of pay due Is
less than $50 this amount would be
available in cash.
The committee plans to specify that
loans made by banks that accept the
certificates as security shall not ex-
tend over period of more than three
years and shall not bear interest more
than per cent higher than the cur
rent rediscount rate where the bank Is
located. Three years after the plan
went into effect loans not repaid by
the borrowers would be made good by
the United States treasury. In these
cases the treasury would pay the bank
the money due, and If the face value
Of the certificates was greater than
the amount of the bank loan the diff
ference would be paid to the veteran.
No effort has been made by COM
mittee men to estimate how much
money would be borrowed by former
service men on their certificates, either
from banks in the first three years
the plan is in operation or in the sub
seuuent years, when the borrowing
would be done directly from the Unit
ed States treasury. They feel that 1t
is impossible to figure out how many
service men among those who select
the certificate plan in preference to
the other three options would elect to
borrow money on their papers.
Chairman Fordney issued a state
ment saying:
at is hoped and believed that when
these Insurance certificates become due
and payable the money may be secur-
ed by the sale of property and securi-
ties owned by the federal government
and without any special charge on the
treasury. This plan seems to meet
with the general approval Of the men,
bers of the house Of representatives,
as we'll as the public generally"
The Chamber of Commerce of the
United States launched the first SUBJ
stantial attack against the certificate
plan. A return to war conditions un-
der which the reserve banks Of the
country held large amounts of loans
secured by government war obliga-
tions was predicted by the Chamber
Of Commerce should the certificate
bonus bill be enacted. The progress
that has been made in the great prob
lem of readjustment would be COM
pletely undone and imitation and other
evils would be inevitable, it is de-
clared.