The New York herald., 1922-04-23
BONUS
NOW SENATE PLAN
Continued from First Page.

mature at the end of twenty years.
Tt was urged in support of this plan
that it would be economical to the
people, head off pensions and pay the
war bin in FULL"
The supporters Of the plan, which
seems to lave its origin in sugges-
tions made by Secretary of Commerce
Hoover, Senators Calder IN. ".
Frelinghuysen IN. J.) and Smoot
(Utah), urged that TIE insurance GER
tificate be based on the length of SER
vice of each man, who would be
credited with 81 day for home SER
vice and $125 day for oversee duty
compounded annually at Az per cent.
interest.
Senator Smoot is said to have
strongly advocated the paid up insur-
ance policy scheme, arguing that 1t
would prove of great benefit to the
ex-service men at time when their
earning capacity would be at low
ebb. The Utah Senator also contended
that the adoption Of the paid up in
surance policy plan would Offset any
move for pension later.
Cost of Proposed Bonus.
1--WE figured that to carry out this
plan," said Senator Smoot, 'it would
cost only $2,9OO,000, 900. as compared
with, $4,000, 100000, which it is esti-
mated would be required to finance
the provisions of the House bill. To
finance the paid up insurance policy
plan $150,C00,000 annually would be
needed to rly the premiums" Va
Senator McCumber objected to the
insurance certificate policy scheme be-
cause it did not contemplate the be-
stowal of cash on the men trying to
commercialize their patriotism. He
suggested that some provision be made
whereby ex-eervice men who are clam
oring for cash should be satisfied. AS
a step in this direction he urged that
the bill provide for the payment OF
cash to all dollar patriots who would
he entitled to 500 or less under the
per diem system.
The one concession made by the Re-
publican conference % the executive
branch of the Government was to in
vite the Treasury experts to make q
report as to the approximate cost o!
the insurance certificate policy scheme
Until the estimates are received the
insurance plan VIII be held in abey-
ance.
OF course it will be submitted to the
officials Of the American Legion. those
of the veterans oe foreign wars and
volunteer propagandists demanding the
bonus. Senator McCumber intends To
n
American Legion before the commit
tee early next week "in order to find
out wnat the beneficiaries Of the pro-
posed legislation want"
McCumber for short Term Notes.
The North Dakota Senator repeated
his objections to any form OF taxation
to carry out the bonus plan and per-
sisted In his advocacy of the issuance
Of short time certificates OF Indebted
ness TO be retired when payments are
made by foreign debtors.
President Harding and Secretary
Mellon have repeatedly explained the
impracticability of such procedure.
There is no telling when any of the
foreign Governments will begin repay
ing the money they borrowed from this
country during the war. The Presi-
dent told Senator Watson the other
day that .he would not approve any leg
islation which calls for the diversion
OF foreign debts until the money is
actually in hand. W
Secretary Mellon has also pointed
out the language of the Liberty loan
laws, which stipulate that payments
ON account OF foreign debts must be
used to -etire domestic war bonds.
The Republican members of the FL
nance Committee paid only casual at
tention to the suggestion that the
needed revenue for the bonus bill
should be provided In "rider" to the
tariff bill. All the Senators present
objected strenuously to this proposal
on the ground that 1t would be likely
to interfere with the passage of the
bonus bill, which probably will have
hard shedding enough without addi-
tional complications.
Meantime Senators objecting TO the
bonus on general principles. including
the rather important matters OF pa
triotism and economic necessity, arc
preparing to demand that the wishes
OF the President, Secretary Mellon and
other Treasury officials-to say moth.
ing OF the views OF the citizens who
must pay the biii--be considered an
integral part Of bonus legislation" as
resolved by the conference OF thirty
FIVE Republican Senators. the other
day.
Opposing Senators OF both partie.
will insist that the wishes Of both th,
President and the Treasury Secretary
be consulted before the Senate sur.
renders TO the demands and threat,
OF the members Of the American lie.
gion and other bonus claimants.