New-York tribune., 1922-03-12
Crissinger's
Frozen Credit
Theory Denied
Representative Green Says
Bonus Bill Does Not Re-
quire Banks to Garry Ger
tificates for Three Years
Date Fixed a Maximum
Leaders Purpose to Pass the
Measure, Declaring They
Have No Fear of Veto

WASHINGTON. March 1f.-Provi-
ssous of the compromise soldier bonus
bill relating to bank loans TO former
service men have been either misun-
6erstood or misrepresentcd in some
quarters" Representative Green, of
Iowa. who is ranking Republican mem
bcr Of the Ways and Means Committee
and who helped revisc the measure, de-
ciared to-day.
rect comment on the announced inten-
ton of Comptroller OF the Currency
Crissengcr to advise banks not to ac
cept adjusted compensation certificates
security for loans, it was generally
regarded that the statement was re-
ply to the opinion of the bills pro
visions expressed by Mr.. Crissenger.
Ways and Means Committee members
have been reluctant to take issue with
the Comptroller. and Mr.. Green's views
were the first definite expression from
Republicans of the committee as 70 the
stand taken by the Currency Comp
troller.
Harding's Attitude Disregarded
ton, Republican leaders in the House
declared that, despite rumors reaching
tho Capitol that President Harding was
opposed to the present draft of the
bonus bill. there had been no change
in plans, which call for report of the
measure on Monday by the Ways and
Means Committee and passage of the
bill by the House week later Re-
ports as TO the Presidents attitude
Called to shake the determination of
those in charge of the legislation to
proceed with their program without al
teration.
leader. Chairman Fordney and other
members of the Ways and Means Com
mittee in the Capitol, said that to their
knowledge the President had given no
indication, directly or indirectly, TO
any member of Congress that he would
veto the bill if it were passed without
sales tax provision. Two members
of the committee, Representatives
Longworth, of Ohio, and Bacharach Of
New Jersey, who have advocated a
sales tax as 8 means of raising the
necessary revenue, were not in Wash
ington to-day and it could not be
learned whether they had been able to
ascertain the Presidents views
Time Limit To Be Dropped
Chairman Fordney said the bill prob
sbly would be amended by the commit
tee before favorable report was or
AeitG 10 QO away WIN LNe requirement
that a war veteran must decide within
six months which of the options pro-
vdcd in the bill he would accept. A
former service man should be permit
ted, the chairman said. TO make this
decision at any time with the proviso.
however, that if he accepted insurance
it was to date retroactively from Octo-
Der i, 1922.
Representative Green, in his state
ment, said:
when the Ways and Means Commit
tee struck out the cash provisions of
the former bill, to which so much OBJ
lection had been made, it was thought
advisable TO make some provisions for
soldiers who We're or should become
in need, and for this purpose the bank
loan provision was inserted.
Date Merely Tentative
at seems to be assumed by some
that ali of these loans would run to
October 1. 1925, but that date was
merely inserted as the very latest
which might be fixed for the maturity
Of loans by the banks in order that
transactions with the banks might
thereafter be closed. 1t was not in
tended that the banks would make the
loan IL the first instance for more than
the time usually given on commercial
paper, although savings bank might
DO so. The government agrees TO cash
these notes if they are six months
overdue.
The mere statement is sufficient to
show that the ordinary bank holds little
paper so we'll secured or upon which
collection could so quickly be enforced
II the maker fails to pay. If the frozen
securities now held in large quantities
by many banks, the result of loans
made with the approval of the Comp
troller of the Currency, had been
backed by such a guaranty they would
have been paid long ago"