Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-08
bONUSaNSORANOE' ]
|. urged BY Hoover
4ecrstesy Of Commerce Has
fslan Prevent, Gripping
n. XHlndustry
FPRo 'Ei' ic'IloN For VETERANS

yNewx69kS SF'eb. S.-The Tribdnte TO-.
Lay pfints s$llss following from q Wash :
tnRtOnS ScorfSsb6ndent:
Cpnkressional leaderssh hhss uncovered
that Herbert G. Hoovers OF
Compercc. has suggested M sb0nus
,plan., dssienetito prevent the setlous Of
fects on prOsserity which he believes
would follow in the wake Of any cash
bonus iplsn. . .
disclosed to, headers on sCanitolEtli.l by
Chairman flrordncy. of the NHause Ways
epd Means Committee. 20 whom the
plan was sent by presidant Harding,
provides mo cash feature nt all, but
protects the veterans through a sort Of
blanket insurance against uneInploy
inent, sickness and accident tand pro !.
tccts their dependents in the event OF
the soldiers death. .'
Mr.. Hoover included with his plan
reports which had been made on it by
nctuaries of several insurance com. :
pRnies. on whom he had called 70
learn what the plan would cost. In
these estimates what might be termed
the base pay Of $50 a month was taken.
but Mr.. Hoover pointed out in submit
ting the plan to the President that this
probably would not be enough. and
= thuI IL was d
to find out just what the plan would
rost estimated on any base pay. That
is to say, IL $50 q month were to be
deemed sufficient. then the total would
have to be multiplied by two, and so on.
Capital Cost $4,000, 100000
The insurance actuaries figured that
what they called the capital cost of the
entire plan would be $4,000. .00C 900.
More interesting to the leaders in Con-
gross Is their estimates as to the appro-
rriation which would be necessary, for
! the first year. This Is just about
have to be increased slowly from year
to year, as the age of the veterans in
| creased.
| Defenders Of the plan in the House
end Senate pointed out that it would at
once take care of veterans who are
unemployed, sick. suffering from acci-
| dent and yet not impose Il tremendous
burden on the Treasury. There is
! a general uneasiness in both houses over
the present business conditions of the
Government. While this is worrying the
| Republicans more than the Democrats,
since the voters are apt TO blame the
party in power for bad times, II is wor-
rying some of the Democrats. too. as the
voters ure apt also to blame their own
Congressman if things are not going tc
suit them.
Fears Industrial Slow Down
It is the belief of some officials in
the Administration, notably Mr..
Hoover. whose Judgment as to business
affairs is highly respected, that any
plan Of raising the money for tn" cash
bonus which has SO far hcen suggested
Is very likely to result in seriously
slowing down the wheels of industry.
already not proceeding at u very rapid
pace.
For example. ii is feared that the tax
on gasoline of three cents Il gallon.
plus the tax on automobile horsepower,
two suggestions which have more sup
port. apparently. than any other plan
which would raise as much money,
would be terrible blow to the nutomo-
bile industry, and, incidentally, to oil
producers.
1t is feared that these taxes. imposed
ut time when the automobile industry
has been forced to cut prices tremen-
dously in order to gain business. would
cause such an additional slump III pur
chases of automobiles as to throw some
tens of thousands of men now employed
in the automobile factories out of work,
carrying with them the men in allied
trades and cutting the demand for steel
and other products used by the aut0no-
bile manufacturers.
Fear to Oppose Bonus
Some of the mon who have made Il
close study of the business situation
are genuinely alarmed over the pros
poets of the results, of this tax: and
others which have seemed to win the
favor of the bonus advocates. Their
gloomy views have alarmed members of
the Senate and House. but there is no
mistaking the fear on Capitol Hill that
to vote against any plan which makes
the bonus possible is little short of
political suicide
Mr.. Hoover plan, however. arpar.
emily is not meeting the problem rs
these politicians see it. Tho belief on
Capitol Hill is that the veterans want
a cash hCnus--moncy in .hand--anA
that nothing else will satisfy thcnv
There il little crcdcncc given the
hope that an alternative plan, which
would give the soldier the option Of
taking either the ready money or any
one Of several other features. would re-
suit in any considerable number of vet