Evening journal., 1922-03-13

(ConUnueQ FROM flthN 1dbc'J ,
estimates. Of perhaps 10000
600 during this and the next fiscal
year. and that II Congress should
decide to adopt the policy Of pay
ing a soldiers bonus il would be
necessary at the same time to pro
vide the additional taxes 70 meet
IT,
on the basis OF the bill then un-
der consideration / estimated that
the minimum cost OF the bonus
for the first two years would
amount to about $3.50. 900, 900, and
that IL might amount to over
billion dollars II enough OF the
veterans should choose cash.
Since that time the President, In
his letter OF February 16, 1922.
has advised that it continues to be
his best Judgment that any bonus
legislation should carry with it the
provisions for raising the needed
revenues. that he found himself
unable to suggest any commend
able plan other than a genera
sales tax, and that II Congress
should not wish to adopt such
plan it would be wise to let the
legislation go over.
The bill now in question Oh. r.
1O769) has presumably been
framed with a view TO reducing
the apparent cost OF the measure
TO the Government. and with that
purpose in mind has eliminated
the cash bonus. except for lin
tied number Of ex-service men
who served for so short a time
that their total adjusted pay on
cash basis would not amount to
more than $50.
Total Cost of Provision.
The total cost Of this provision,
81 is estimated. would be about
$4,000. 600. The bill retains,
however. the other four OF the
five bonus plans, including farm
and home aid land settlement aid
and vocational training. IL pro-
vides as the principal bonus plan.
for so-called adjusted service GER
tifcates. which amount, in effect,
to paid-up endowment insurance
policies issued by the Government
to mature at the end OF twenty
years. or earlier upon the death OF
the veteran.
The maturity value OF these
policies is calculated on the basis
Of the so-called adjusted service
credit (which corresponds rough
~ to the adjusted service pay that
would have been allowed under
the cash bonus plan), plus an in
crease Of 25 per cent, with In
terest in combined figures at the
rate of AZ per cent. per annum,
compounded annually for twenty
years. The adjusted service GER
tlncates would be negotiable
and there is no provision for d.
rect policy loans by the Govern
ment until after September 80,
1925, but in the meantime ma
tional and State banks and trust
companies are authorized to make
loans TO holders OF certificates up
to so per cent. OF the adjusted
service credit. plus interest there
on at the stated rate to the date
OF the loan.
Mandatory Redemption.
As to veterans who borrow on
their certificates from the banks
and fail 20 repay the loans within
six months after maturity. or be-
fore September 80. 1925, the bill
provides that the Government
must redeem the certificates In
cash upon demand. between May
80 and October IS. 1925. at so
per cent. Of the adjusted service
credit. p.us.@~-erest thereon at the
stated rate TO the date Of redemp-
tlon. and apply the proceeds OF
such redemption, first, to the pay
ment Of the bank loan, with prln-
cipa and interest, and then any
balance 20 the veteran or his bene-
ficiary
After September 80. 1925, the
bill provides for direct loans on
the certificates from the Govern
ment. The bill makes no provision
whatever for sinking fund, amor
tizatlon or other reserves against
either the liability that would be
thrown upon the Government In
1925 OF against the liability on the
certificates al the end OF twenty
years. nor does Il make any pro-
vision for the payment which
would accrue in ordinary course
from year 10 year on account Of
the death Of veterans.
The direct cost TO the Govern
ment OF a bill carrying these pro-
visions for about 100000 ex-
service men is almost impossible
10 estimate because OF the uncer-
tainty as TO which Of the plans
will be chosen and in what pro-
portions.
Farm and Home Aid.
with the cash bonus eliminated
except 10 the extent OF payments
OF $50 or less the provision Of
the bin that offers the nearest ap
proach TO cash Is the plan fol
farm and home aid. under which
The veterans would be able 20 get
beginning January /. 1928, for IN,
purpose OF purchasing, improving
or making payments on a city o
suburban home or farm. the ful