The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1922-03-15
BONUS BILL IS BEFORE
THE HOUSE, DRAFT,
Carrying Bank Loan Provision
Agreed on By Committeeman;
Vote Awaits Fordney.


the cash installment- payment plan
originally proposed and once approx
ed by the House, finally was agreed
today by Republican members OF the
Ways and Means Committee. 1t was
introduced later in the House by
Chairman ]. w. Fordney. who an
nounced that Il would not be called
up until Monday, IL then.
Passage of the bill was predicted
by Mr.. Fordney. His opinion ap-
peared to be shared by members Of
the House generally, some of whom
said that on the final vote party lines
would disappear.
Four options Provided
Adjusted service certificate, COM
bining loan and insurance plan.
Vocational training.
Farm and home aid.
Land settlement.
The ultimate cost Of the bonus to
the Government, 1t was said, would
depend on the number of men select
ing each of the options. 1t was esti-
mated that the immediate cash pay
ment to those entitled to not more
than $50 each would be around s16,-
100000.
The final cost might range all the
way from $1,000, 1000, 900 to $4,500,-
100000 the maximum figure being
predicated on all of the veterans Sc
lecting certificates and holding them
until maturity or until their death.
The adjusted service certificates
would be dated October l, 1922;
would mature in twenty years, or at
the death of the veteran, and in
either case would have a face value
equal to the sum of (1) the adjusted
service credit of the veteran increas-
ed by % per cent plus CD interest
thereon for twenty years at the rate
of 4 u per cent compounded annual
ly. The total amount would be ZAP
prximately equal to 3015 times the
adjusted service credit of the vete-
ran"
Basis of Credits
This credit would be figured on the
basis of S1.25 for each day of over
seas service and 81 for each day of
home service, but in no event could
the credit exceed $500 in the case of
a veteran who performed no overseas
service and S625 in the case of a vet
eran who served overseas.
Prior to September 80, 1925, any
national bank or any bank or trust
company incorporated under the laws
of any State, Territory, possession of
the District of Columbia would be au-
thorized to lend to veteran on the
certificate any amount not in excess
of SO per cent of the adjusted service
credit plus interest at ~ per cent
from October 1, 1922.
The loan would have to mature not
later than September 80. 1895, and
the rate of interest charged by the
bank could not exceed by more than
per cent "a year, the rate charged
at the date of the loan for the dis
count of ninety-day commercial pa
per by the Federal Reserve Bank y
the Federal Reserve District in which
is located the bank making the ad-
vance to the veteran.
If a veteran defaulted in tn pay
ment of principal and interest to the
bank for six months after maturity OF
the loan, the bank would be required
to present the veterans note and
certificate to the Treasury not earlier
than May 80, 1925, and not later
than October is. 1925, and the Gov
eminent would cash the certificate.
United States Would Pay Bank
The bank would be paid the princi-
pal and interest up to the date of
payment by the Government, and the
veteran, II living, or. II dead, his ben
'eficiary or his estate would be paid
the difference between the amount
paid the bank and 80 per cent of the
loan value of the certificate at the
time of its receipt by the Treasury.
After September 80, 1925. the Gov
eminent would make loans directly
to vtterans on the, certificates. From
that date to October l. 1928. the max
imum value of the loan would be 50
per cent of the sum of the adjusted
service credit of the veteran, plus in
terest from October l.. 1922. at "a
per cent. compounded annually.
II the loan were made after Octo-
Der /, 1928. the loan value would be
20 per cent of the adjusted service
credit increased by rs per cent and
interest thereon from October !, 10
.22, to the date OF the loan. at VI
per cent compounded annually.
l. ant .t.I