The Birmingham age-herald., 1922-06-01
LOAN PROVISION IS RETAINED IN BILL. DATE IS CHANGED
Measure Will Be Reported Within Few Days-Long Fight Is Expected in
 Upper House
By Associated Press

1 Sot0lerS bonus DilI amenueu III SeN-
 eral important particulars, but with
 the much discussed bank loan pro-
 vision retained, was approved today
 by Senate finance committee by a
 vote of nine to four. Chairman Me
 Cumber proposes to report the meas
 ure to the Senate within a few days,
 and said he hoped to get action on
 it before the passage of the tariff
 bill.
 The more important alterations made in the House measure were;
 The changing of the effective date
 of the legislation from next octoper
 to January 1, 1923,
 | Removal of the time limitation on
 the filing of applications by World war veterans for adjusted service compensation.
 1 Abandonment of the reclamation
 plan and the substitution of the pro- vision under which veterans would be given preference In making sntry on pupilc or lnuiai AaHus Hhou oPNaSN
 to entry.
 Elimination of the forfeiture pro- vision under which veterans falling
 to repay loans made by banks of tho government on adjusted service certificates would have forfeited their certificates.
 Reclaim Certificate i Under the amended bill such vet l erans could reclaim their certificate
 at any time before their maturity. 70 | years from the date of issue, upon l the payment of their default plus ln- tercst at 4h per cent compounded
 lannually. 4 provision of the Housa measu.e conmonly called the McCumber plan. i lection, 8 to 5. of measure offered 1 by Senator Shoot of Utah. ranking ], committee republican, proposing paid up life insurance in lieu of all other
 forms of compensation.
 In addition to it's author, senators supporting the Shoot bill were Call 1 der, New York; Dillingham;, Vermont.
 Frelinghuysen, New Jersey. and M':- Lean. coppecticut, all republicans. 1 On the vote for the McCumber measure, Senator Mclean broke the tie that had existed among the 10 l republicans of committee as between 1 two propositions. Besides Mir. Me Lean. those supporting the amended | House measure were McCumber. ] North Dakota: LaFollette, Wiscon- sin; Watson, Indiana: Curtis, Kansas.
 and SoutherIand, West Virginia, all republicans. and Simmons, North Car l oiina; Walsh, Massachusetts. and Query, Rhode Island, democrats. + f.&s f..s s.,ef ] member of the committee. said the democrats supported the McCumber plan not because they favored 1t. bat to obtain quick action on bonus leg islation.
 HardfnE's Views Neither President Harding's views with respect to the bonus nor meth ods of financing the legislation en- tered into committee discussion, sem ators said. Leading proponents of the McCumber plan expressed the belief that this plan would prove not unacceptable to the executive sInce 1t called for no heavy expendi- lures during the next three years that would require either new taxes or any large drafts on the treasury. Chairman McCumber said that aft CT the first three years the neces- sary funds probably could be sup piled from interest on the refunded foreign debt. Senator McCumber ex-
 pressed the opinion that no addition- al legislation would be necessary in order to divert the foreign debt into the channel of bonus financing as ! the interest payments go Into the general treasury fund.
 Present plans for calling up the bonus bill in the Senate are indefi- mite. Senator McCumber said that he did not desire to make it par tisan question but that he hoped to reach an agreement under which final vote could be taken before the passage of the tariff bill Whether the. measure will be considered al- ternately with the tariff bill with a portion of the daily sessions given over to each has not yet been de- cided.
 Long Fight
 The bonus bill is certain to lead long fight in the Senate The democrats express themselves as not at all pleased with It's present form and have indicated that they will have number of amendments to offer. Senator Shoot plans to of- fer hts insurance measure as sub stitute and may introduce the issue of the sales tax Tn the 7ulscussioh' Opponents of bonus in any form, who include Senators Borah. ldaho, Moses. New Hampshire. Wadsworth, New York, republicans, and Williams, Misslssippi, and Myers. Montana. democrats. are preparing for de- termined fight on the bill. Bonus proponents. contend, however, that they have the votes to put adjusted service compensation legislation through the Senate and they are con- fident such legislation will be en- acted before this session Of Con- gross ends. Under the bill, as the Senate will receive 1t. the amount of compensa- tion credit for veterans will be com puted on the length of service less the $50 bonus the men at the time of their discharge from the service. but would not exceed $500 for those who had only domestic service and 3625 for those who saw service over seas.
 X cash bonus would be paid only. to those veterans whose total credit did not exceed $50. Other veterans