Norwich bulletin., 1922-03-02
Notifications For
 Soldier BOnusFund
Committee Endeavorlng to
 Devise Means With o u t Heavy Draft on Treasury.

0CFISC NAC0AlS w II U 0
 Heavy Draft on Treasury.
 Washington, March 1-Elimination of the cash feature of the soldiers bonus bitl, but under 8. plan which would enablr former service men to obtain funds from banks on adjusted service certificates inn medfately after they were issued, is under consideration by majority menbers of the house ways and means committee as a possible solution of the bonus problem.
 This would make unnecessary any heavy draft on the federal treasury dur ing the next two years while the refund ing of the $6.500 ,000. 900 short dated debt Is in progress and, it was said would re- move the fundamental cause of the diff ferences in congress and between the ad- lmindstration and congress over the bonus question The task of working out the plan was assigned today to a special sub committee which was appointed by what was described as unanimous consent" after the majority members had failed to agree on any method of financing the cash payments which 1t had been planned should be spread over a period of two and one-half years from next October l. The subcommittee had its first meeting late today and 1t Is understood plans to cali in Secretary Mellon and possibly members of the federal reserve board for discus sion of the whole proposal.
 | Emphasizing that the suggested plan was only in the "incubation'' stage, Rep
 resentatiye Longworth, of Ohio, a mem Der of the subcommittee, said it probably
 would be a week or more before the suo> committee had completed it's work. What | ever program Is agreed upon must be
 submitted to the other majority members
 for a decision and it appeared probable 1 that it would be at least month before
 whatever bill was agreed upon would be
 ready for the house.
 Under the plan now contemplated, the face value of the adjusted certificate would be equal to the sum Of the adjusted
 service Gay of the veteran one dollar day for domestic service and S1,25 a day for
 foreign service less the $60 bonus paid at the time of discharge), increased by forty per cent, plus interest therefor for twen-
 ty years at the ra te of four and ore-half per cent. a year, compounded annually. The total face value thus would approx irnately 338 times the amount Of cash
 that a veteran would have received under
 the cash feature.
 Immediately after the certificate was re-
 ceived the service man could obtain from
 8 bank an amount equal to fifty per cent.
 of the total of the adjusted service pay. l II, dL the e8plTdllOn OI LIlTGS years tlle
 sum thus obtained plus interest had not kbeen paid by the service man, the bank
 could make demand on the federal treas
 ury for the amount due The govern
 ment thus would take over and carry the
 loan.
 Provisions respecting loans to be made
 by the government on the certificates after
 three years from their issue would be re tained in the bill, it was said. Under these
 provisions, if the loan were made within from thre etto five years after issue the
 amount could not exceed ninety per cent of the sum. of the adjusted service pay plus interest from the date of issue at z rate of 4 1-2 per cent compounded an ] nually. If the loan were made after hv' [ years the amount could not exceed eighty per cent of the sum Of the adjusted ser
 vice pay increased by forty per cent. plu! r interest from the date of issue at the rat , of 1-2 per cent compounded annually, Representative Longworth expressee 9 the opinion that the suggested plan if 1 - could be put into workable form would meet the approval of President Hardin; s and also of both the house and senate. H : also thought it would be acceptable to tn . service men. This view was shared b. 8 several other members of the committed
 who said the program would enable mel l in immediate need to obtain fairly larg e 1 sum of cash and at the same time retail : to them more lasting benefits perhap 2 than would have been obtained througl : an all-cash adjusted compensation. n The agreement arn0ng the way an . means committee republicans to under s take the working out of a oomprornis . plan was reached after there had bee e | another test of strength on the proposa
 made by President Harding that the cas
 bonus be financed by means of sales tax
 It was learned today that a motion { 7 write a tax provision into the bill was re
 jected late yesterday by a vote of nine t A six, with one member absent
 q This left the question of reporting n bill without any means of financing th l- cash payments This was vigorously o9 - posed by some members and the discus = sion finally got around to the basis of |. possible compromise along the lines roN . under consideration with officials of tn
 American legion. :, Restriction of the cNsh feature prev i, ouely had been approved by several mem :. bers of the house who served with tn /. colors during the world war and 1t wa v said there had been a growing sentimeE Il among the house membership for this pla '~ as compromise. Representative Flsl ' republican, New York, 8 foramer servic
 man, had drawn an amendment restrictin u the cash to those taking vocational trair ,s , ing, the sick and the unemployed. Anott CT plan suggested was that of insuranc . for all of the men with sick and uneT r bloyment benefits and a monthly cas payment after the beneflciaries reacae = the age of sixty-fve.
 'i Mir Fish submitted his amendment ,0 , President Harding today at the Whit i- House and said afterwards that M le Harding favored a restriction of the cas- u feature and had expressed the hope tht T. congress would not be swap- off the '- feet on the bonus question.
 ct FURNITURE OF SENATOR
 NJ PENRnsE snI.n AT ArrTTn