The Washington herald., 1922-03-08
Deferred Pay, or Immedi.
ate Relief in Bank
Loans Disapproved.
MEASURE LAID
BEFORE HOUSE
Introduction by Repre-.
sentative Fordney Fol-
lows Committee Action.

Concurrent with Representative
Fordney's introduction in the House
yesterday of the revised Republican
soldier bonus plan, President Hard
ing expressed in vigorous manner
his disapproval OF the new pro-
posal.
The bill. under which the former
soldiers would receive deferred ad-
justed compensation or immediate
relief through bank loans, with tax
alton to meet the cost deferred. does
not appeal to the President. He has
not changed his mind on the bonus
question and reasserts his position
in the letter to Mr. Fordney that,
unless the bonus can be financed by
a sales tax. bonus legislation should
be postponed.
The President felt impelled to
point out that the arguments for
the new plan had not changed his
mind, disappointing as this would
be to those who think the attitude
OF the administration veers with
the breezes.
Whether this presages a veto OF
the new bill. II il should be passed
without material concession to the
viewpoint of the President, is a
speculation in the Capital last
night.
Agreement on Details.
Introduction of the bill followed
an agreement on all the details by
Republican members of the COM
mittee. A meeting of the full Ways
the Democrats. will be held on Sat
urday. At that time the bill will
he reported formally to the House
The delay in the meeting of the
full committee is due to the alb
sence of Representative Fordney
from the city during the next few
days.
The Fordney bill provides the
same FIVE options as the original
plan. but limits cash bonuses to
those entitled to less than $50. The
| Other four options are an adjusted
service certificate. vocational train
ing aid, farm or home aid and land
settlement aid.
The new feature of the bill. as
worked out during the last week.
Is that which permits all veterans
| to borrow up to SO per cent of the
original value of the adjusted serv-
ice certificate from any national or
State bank. Immediately after oc-
tober /. 1922. the date which the
certificates will bear.
!, 1t Is estimated that IL all former
| service men should take adjusted
| service certificates and keep them
for the full twenty year period be-
fore they mature. the ultimate cost
n he ha q
| $3.50. 900. 900. The actual cost. it
Is expected. will not run as high as
this total. because savings will be
| made in interest payments on GER
tificates on which cash is paid upon
the death of the holders in advance
of the expiration Of the twenty
year period and also because Of the
fact that former service men who
borrow on their certificates and
then fail to repay the loans will
forfeit 90 per cent of the value
of the certificate.
Maximum OF Loans
Members OF the Ways and Means
| Committee estimate 100000. 900 as
| the maximum amount of possible
loans which may be obtained by
former service men from the banks.
This estimate is based on the pos
sibility that so per cent OF the for
mer service men might borrow the
maximum allowed.
The original face value of the ad-
justed service certificatek it is es-
timated. if all veterans elected to
take them. would be not in excess
OF $500. 100000. The original loan
value would amount to $500 600, 900.
and IL half of the men obtained
loans it would reduce the amounts
to be carried by banks to s4oo,-
900 900.
The face value of the certificates
is based on 81 per day for home
service in excess Of sixty days, and
S1.25 for each day of overseas serv-
ice. If the veteran holds a certifi-
cat. FOR the full twenty years he
would be entitled to the sum Of his
adjusted service pay increased by
rs per cent plus 41a per cent inter-
est compounded annually. The ulti-
mate of the certificate is about three
times it's original face value.
After September 80, 1925. veterans
are permitted to obtain loans direct
from the government up to IS per
cent of the original face value plus
interest to that date.
1t is provided in the bill that no
certificate shall be negotiable or as
signable or serve as security for a
loan other than when made through
the banks as provided by the meas
ure. Rights of the veteran are for
feited IL it is found that a certif-
cate has been negotiated or as
signed or has served as security in
violation of the provision.