The New York herald., 1922-03-04
RAIDERS IN PETITION TO THE PRESII

idea venture is the belief that it pro-
vides technical avenue OF escape
from his repeated objections to pre-
vious undertakings.
Adherence to Spirit.
Bonus Congressman assert that by
''postponing" the actual raid ON the
Treasury for three years they will be
adhering to the spirit, if not the letter,
Of the Presidents recommendation that
the bonus project be laid aside unless
a sales tax feature Is included in it.
What the President recommended in
his letter was that bonus legislation"
be laid aside.
The promoters of the insurance GER
tificate scheme now being reduced to
legislative form do not regard the
distinction between an actual bonus
raid and the enactment of bonus legis-
lation as of.vital Importance. Some of
them assert that the Presidents tend
eucy toward compromise" may even
tually lead to his approval of the
latest project for reasons solely po-
litical.
At any rate they are willing to take
chance to the extent of iamming
the new scheme through the lower
house, and that's all they really care
about. Such step will, they think,
save them from the wrath of the
bonus claimants.
1t developed to-day that Representa-
tive Bowers (Rep., w. Va) worked
out the loan feature Of the insurance
certificate plan just about the time
Mr.. Fordney and his associates were
ready to throw up the sponge The
contribution of the West Virginia Rep
resentative was seized upon as a life
line and adopted on his assurance that
the scheme would prove workable.
Fordney Easily Convinced.
At any rate Mr.. Fordney and the
other bonus members were easily con-
vinced that the plan of Mr.. Bowers
was more nearly rational than those
that have been discarded for various
reasons.
The West Virginia member had lit
tie difficulty in arousing the enthu-
siasm of his harassed associates and
they decided to go ahead with it and
perfect it as they went along.
Most Of the day was spent by Mr..
Bowers and other members of the sub
committee to which the project was
referred for completion and drafting
in trying to meet criticism leveled at
it from all quarters to-day. Ono OF
the first changes made was to decrease
the loan value at the Treasury De-
partment of the certificates from 80 to
IS per cent.
The effect of this. according to
financial experts. would be to reduce
The probable outlay of Government
money from $1,000, 100000 to around
$4,250. 900, 600 In other words, instead
of getting s5.0o0.O00,0o0 in actual
money from the Government finances,
The soldiers entitled to the bonus
would get $4,250,O00,o00 when they
presented their certificates for loan
at the end of three years.
Another change made in the bill
was that the highest rate of interest
that can be charged by banks shall
not exceed per cent. above the Az
per cent. which the certificates Will
bear, and which will be compounded
annually.
Not Bothered About Final Cost.
lust how much money the new.
bonus enterprise would cost the Gov
ernment at the end of twenty years,
the date of maturity proposed. none
of the members OF the committee has
tried to figure out They are not in
terested in that phase of the problem
Another feature which is not really
regarded as important was the franz
ing of a provision to prevent the GER
tificates from falling into the hands
Of pawnbrokcrs. loan sharks and usur-
ers That is going to be done, accord
ing to the members of the committee,
but just how is something else"
Another criticism which will have to
be met will be to devise some method
for compelling banks to lend money
on the certificates when their re-
sources will not permit 1t. Then the
only way open to a soldier demanding
immediate cash would be that he viii
have to look for a market elsewhere
until he can present his certificate TO
the Treasury Department at the end
OF three years and get a loan OF 80
per cent. of it.
Analysed from various points, finan-
coal experts expressed grave doubt as
10 the ability of the committee to
frame a safeguard that would prevent
n soldier holding a certificate from
selling his own property to the best
available purchaser. 1t is quite prob
able that the certificates may be made
non-transferrable and non-negotiable.
IL this Is done and soldier cannot
negotiate n loan with a bank he will
be confronted with one Of two other
methods. One will be to keep his cer-
tificate for three years, when he can
take IL to the Treasury. The other is
10 make private deal with pawn
broker, usurer or loan shark and pay
a bonus out of his Government bonus
for the accommodation" he Is not
able to obtain at q bank.
Loose Ends Admitted.
Members of the committee admitted
this afternoon that the new bonus
venture is far from perfect. They con-
cede the existence OF many loose