Greenbrier independent. [volume] (Lewisburg, Va. [W. Va.]) 1859-1980, 1922-03-17
PLAN FOR BONUS.

Oh The House Cf REPRESENTATIVES, las,
week discovered new method oC
Stii!rS. as they think the soldiers
bonus without any heavy draft on
!I .nc rcderaI Ir,aarry a! present.
lhlS ptan Is the issuance of adjusted
service certificates which the sol
! GiclS could take to the banks and
NbLrrow .hercon 30 ne" cent of the
lace value OF the certificate. SO the
: faIorltE n:..nbCr< ECpc they max
DC enabled to get by ihc bonus uuc;-
'lon without new taxes ut present
antl without issuing bonds. uys an
entirely new scheme ard passes 10
the banks shc responsibility CT rails.
ing half the money that would III.
coming 10 Elc cN-Scrvicc men under
the bonus act. The certificates are
not to be rcdecmablc by the Fcdcr-
al Government until 1928. The sold
Ter could only get half now and he
would have to pay the bank interest
OH that.
"A Subcommittee Of the Republican
maj lority is working out the plan
and Will report IA bill in few days
Inc Democratic committeeman arc
not permitted to have any hand in
this. Washington dispatches arc to
the effect that a majority of the
House seems to favor this plan.
! Secretary Mellon and other Treas
'Ty officials, however, look with dis
approval upon the bill. BY scmc it
; Is regarded rs unavoidable. THE
banks may have difficulty in raising
5000, 100000 to billion for loans
on tho proposed certificates. And
yet 10 refuse loans to the service
men would tend to stir Up feeling
against the banks.
The proposal is criticized on The
ground that it is IN invitation to the
service men to 80 into debt TO the
banks. instead OF the Government!
paying them outright.
Cndcr the plan now contemplated
thc face value of the adjusted service
certificate would be equal to the
sum OF The adjusted service pay of
The veteran (Sl.00 Il day for domcS-
TIC service and $l.25 iay for fer
eiSn service less the 500 bonus paid
at he tim" Of dichargcD increased
by 20 per cent, plus Interest thereon
at the ratc Of four and onc-lialf Der
cent year. compounded annually.
Immediately after the certificate
was received, the service man could
obtain from a bank an amCunt equal
to fifty per cent of the total of the
ABUSED service pay. If. at the en-
piratICn OF three years the SUM thus
obtained plus interest had not been
paid by the service man. the bank
could make demand OH the Federal
Treasury for the amount thereof The
Government thus would take over
and carTy the loan.
And that would be after The 1921
election. The bill was reported to
the House Tuesday.
Tie above is fair outline cr !hc
proposed bonus legislation to date.
II is hardly possible that lhc House
/ of Representatives is serious in
! this matter. They arc all ND before
Ee people for reelection. Only one
) third Of The Senators arc to be voted
on this fall. This bill, if we give
/ The House credit for any sanity at
all, is merely passing it on 10 the
! Senatc.' But seriously suppose this
! bill becomes law. 1t is the liberty
bond proposition over again. At the
close OF the war the Secretary of
! tl:c L. S. Treasury urged everyone
not to sell their Government bonds
hut to hold them that they might get
! par value for them. This was not
done. Government bonds were sold
/ by the millions Of dollars worth.
! The New York banks bought them
! in and they have made millions Of
dollars on them and will continue to
do so in the future.
| The local bank is only to loan on
these certificates to one-half their
value. Thousands and thousands of
! the service men will never renew
their notes at the local banks if at
all but few times. The local
banks Will put these certificates on
the market which they may be able
to sell under the conditions of this
bill at a slight raise above one-half
their face value. The city banks
will buy them in and finally redeem
them from the Government at their
face value. This will be true of
every bonus certificate not held by
the service men until maturity. 1t
means that the banks handling them
from start to finish will make a clear
gain of onc-half. This benefit will
go to the large city bank rs but few
local banks can afford to hold these
certificates to any large a,m@unl.
This proposition is clear cut deal
in favor Of Wall Street and the Big