The New York herald., 1922-03-02

viii not impose any charge on the
Treasury for at least three years.
The idea back of this scheme on
which the bonus members of Congress
pin their hopes for political salvation
i- 10 amend the insurance feature OF
the five way plan the American Legion
aaNors. Under il the Treasury De-
pdrtment will be instructed TO issue
insurance certificates maturing at the
end of twenty years but redeemable by
The Government at any time after
three years.
Basis for Allotment.
The promoters of the venture prob
ably will decide to incorporate pro-
vision that will enable an ex-service
man to take his certificate to bank,
a pawnbroker or a usurer and borrow
50 per cent. upon it. The basis for
insurance allotment now favored viii
he s125 a day for men who served In
the Expeditionary Forces and 81
cay for those who remained at home
lie same rate as paid for actual ser
vice.
Under the new scheme the maxi
mum insurance allotment will call for
SS25, with an average of 1929. If all
the men entitled to this form of bonus
accept it the cost to the Government
win approximate $4,000. 900, 900 at the
end of twenty years
another attractive feature OF the
proposed fiotation which Is urged Dy
its supporters is that great many
men will cash In their certificates at
the earliest possible moment and the
Government will save a lot of money
~ redeeming them at any time after
three years.
Another argument advanced TO
make the scheme appeal to service
men is that the certificates will triple
In value with interest at TIE time of
matufity. The rate of interesc will
be decided on by the subcommittee
after conference with the Federal Re-
serve Board and officials of the Treas
ury. The committee also will attempt
10 work out some rediscount plan and
TO incorporate safeguards against the
certificates falling into the hands of
usurers. Just how the men are to be
prevented from selling their certifi-
Gates for any amount they agree to
take is a problem that the proponents
OF the project have not thought out.
Longworth's Opinion.
The opinion was expressed by Rep
Tesentative Longworth, who while
favoring the bonus, has consistently
opposed all of the wild cat' scLmes
proposed for financing 1t, that the in
sarance system which the subcommit-
lee viii try to work out affords the
most practical and acceptable solution.
Attempts made in the committee to
revive the sales tax scheme to tax agri-
culturists and to report bill without
any machinery for raising the money
We're discarded under the attacks led
by Representatives Longworth and
Copley.
These members and two or three
others declared their opposition to any
plan that will invite a veto from Presi-
cent Harding on the grounds men,
toned in his letter to Chairman Ford
Iey.
The Presidents suggestion that If
he sales tax method for financing the
ssill proves unacceptable to Congress
consideration of bonus legislation be
postponed, found surprising amount
Of favor among Republican members
of The Ways and Means Committee at
both sessions to-day. No test vote was
taken on 1t.
Postponement Finds Favor.
Tf the insurance scheme is found un-
workable, there is little question that
he majority of the Republican mem
ers Of the Ways and Means Commit
lee will urge the abandonment of bonus
legislation in accordance with the
residents suggestion. Support of this
solution of the most vexatious problem
that has confronted Congress in many
years is growing rapidly in both
houses, and it is doubtful whether the
more ardent bonus members who fear
the political reprisals threatened by the
American Legion can recruit votes
enough to beat 1t.
IL they do so it is quite probable that
the five way plan demanded by the
legion will .e put through without any
financial provision. The members of
the subcommittee having the new in
surance system in charge expect it
will take them several days to confer
with officials of the executive depart
ment and prepare their bill. Their first
inquiry will be as to the earliest pos
sible period the Government can pro-
vide the money to redeem the insur-
ance certificates after liquidating the
Victory bonds.
The members of the subcommittee
are not optimistic regarding the out
look for what is regarded as the final
effort to put through a workable bonus
pill. They realize that it must run the
Eantlet of experienced critics whose
judgment will finally determine the
feasibility OF it,
Uneasy over Democrats.
If a measure is produced the SUBJ
committee will report 1t to their Re-
publican associates on the ways and