Middletown transcript., 1922-06-17
BONUS BILL IS
BEFORE THE SENATE
McCumber Reports Measure
and Argues for Its Passage
OUTLAY Of $3,845, ,65s, ,481
Counts On Interest Payments BY
Foreign Nations To Meet It.
Plan To Rush
Bill.

| SnlngtOn.-IgnOrlng the SuggeS
| tions that the Treamry cannot stand
bonus drain and hints from Admin
istration circles that President Hard
ing Will veto the measure, Senator
Porter ]. McCumber, Republican, OF
North Dakota, reported the Soldiers
Bonus bill to the Senate, with a
lengthy report favoring it's passage.
The bill puts squarely up to the Ad-
ministration the payment Of a soldiers
bonus from interest to be collected
from the British and other war debts
McCumber cited funding operations OF
the Treasury to show the Govern,
ment's financial condition is steadily
improving.
The bill is expected to slumber on
the Senate calendar for a few days,
and then an effort will be made to dis
place the tariff and rush It to passage.
McCumber explained that the bill, a
modification of that passed by the
House, was intended to correct the
inequalities suffered by those who per.
formed actual soldiers duties and re.
ceived meager soldiers wages" and ex-
cluded from its benefits "all those who
were given commissions while per-
forming merely clerical service in the
departments" It's benefits were also
limited to those below the grade of
captain in the army or Marine Corps
and lieutenant in the navy, he stated.
In discussing the application of the
foreign debt to the bonus, McCumber
expressed the hope that the World
War Debt Commission would make
such progress toward refunding the
demand obligations OF foreign coun.
tries into long-term obligations as to
secure the latter sin the very near
future" and render it possible for the
foreign governments to provide for
the immediate payment of interest
thereon" SO that such interest "can be
used toward defraying the expenses
of the bonus.
The budget recently presented to
the House of Commons provides for
the installment of interest due the
United States on the Indebtedness of
Great Britain payable November,
1922" McCumber pointed out. "In
view of this fact, it is believed that
the United States can count on re-
ceiving interest payments from Eng
land from now on, such payments ag-
gregating about S200,0O0,O00 per
annum.
"The March, 1922, revised estimates
of receipts for the fiscal year ending
June so, 1928, contained an estimate
of 1925, 100000 for interest on foreign
obligations.
This would be nearly three times
the amount necessary to meet the OBJ
legations created by this bill for the
first two years"
The highest cost the bill would i'm.
pose would be 4,4S6,545,975, McCum-
Der estimated, but only in the event all
the veterans should avail themselves
of the 20-year endowment insurance
certificate plan, with its borrowing
provision.
But even if this were possible" he
added, the payments would be scat
tered over 40 or more years." his judg-
ment being that many ex-service men
would not actually apply for compen-
sation until they required it, or for at
least number of years after the bill
became a law.
The actual estimated cost of the va.
rious forms of compensation provided
by the bill he figured however, at $3.-
845,659,4S1 on the basis that rs per
cent. of the ex-service men would take
the insurance certificate plan 22k per
cent. farm, home and land settlement
aid and 2k per cent vocational train
ing, while but s16,0O0,OOO would be
needed to meet the provision for a
cash bonus for those entitled to $50
or less
THE purpose of this bill," McCum.
ber emphasized, "is to give the soldier
who offered his service a compensa-
ton that will more nearly approach
that of the laborer who remained at
home, secure from danger and whose
compensation increased from 200 to
800 per cent, and, measured by the
amount of labor actually performed
percentage far beyond those figures.
During the war we paid our sol
diers $50 per month, or 81 per day. A
fair estimate of the cost to the Gov
ernment for his maintenance and
clothing would be about 81 per day.
We might therefore say that the pri-
vate soldier received a compensation
for his services equivalent to about SO
per day, which was very much less
than that received by the lowest class
of labor at home.
at is the opinion of your committee
that during the next three-year period
the payments under the bill can be
made without additional taxation. 1t
is hoped that by the end of the three
year period the reduction in govern
mental expenses, plus the payment of
interest upon foreign obligations, will
be sufficient to obviate the imposition
of additional taxation.
PockETBOokS ARE LIGHTER.