The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-11

BONUS BILL
INTRODUCED
New Measure Carries
Bank Loan Provi-
sion Plan in Place of
Cash Payment Fea-
ture

Washington, March THE
compromise soldiers bonus bill.
/ carrying a bank loan provision in
/ place Of the cash installirsent pay
ment plan originally proposed and
once approved by the house. finally
was agreed to today by Republican
members of the ways and means
/ committee. 1t was introduced later
| in the House by Chairman Ford
! ncy. who announced that it would
not be called up until next Monday
IL then.
! Passage OF the bill was predicted
/ by Mr. Fordncy. His opinion ap-
| ipeared to be. shared by members
j of the House generally, some Of
whom said that on the final vote
party lines would disappear. There
was some speculation in House lob
bies and corridors as TO President
Harding.s views Of the compromise
plan. and also as to whether he
would find occasion TO express those
views before the House voted.
Chairman Fordney still declined
! to say whether he had discussed
the compromise with the Executive.
! At the White House it was said
| that Mr.. Harding had not studied,
and consequently had not formed
an opinion Of the bank loan pro-
| vision. He was represented. how
ever. as maintaining the same po-
sition that he did when he "r.;e
! Mr.. Fordney on February JIG that
the bonus either should be paid by
q sales tax or the legislation lost-
ponea.
! Some Of the majority members of
the committee believe that since the
new plan defers fer t:lrec years
any large drain on the federal
treasury the President Will not OBJ
| iect to it. They say the cempro-
mise will enable needy veterans 70
! obtain cash without the necessity
Of imposing additional taxes on tne
general public.
Mr. Fordncy said the entire Wavs
and means. committee would meet
on Saturday when the Democrats
would have an opportunity 20 pass
judgment on the bill.
Aside from the substitution of tie
bank loan provision for the cash
payment plan. the bills as introduc-
ed is very similar to that previously
passed by the. House. Ifhc only inn
mediate cash payment proposed is
to veterans whose adjusted service
pay would not exceed $50. Other
veterans could select one Of these
four options:
Adjusted service certificate. com
bining loan and insurance plan.
Vocational training.
Farm and home aid.
Land settlement.
The ultimate cost of the bonus
| to the government. it was said.
would depend upon the number OF
men selecting each Of the options.
| II was estimated that the immedl-
ate cash payment to those entitled
to not more than $50 each would
be around s16,000.000. The final
cost might range all the way from
81. 900. 900 900 to $3.50. 100000 tho
| maximum figure being predicated
upon all Of the veterans selecting
(! certificates and holding them until
maturity or until their death.
The adjusted service certificate
would be dated October 1, 1922:
would mature in twenty years. or
at the death of the veterans and
in either case, would have q face
value equal to the sum Of Cd the
ad justcd service credit Of the vet
era:i. increased by % per cent plus
I! (2) interest thereon for twenty
years at the rate Of A. per cent
| compounded annually. The total
amount would be Approximately
equal TO 3.015 times the adjusted
service credit of the veteran -
This credit would be figured on
the basis Of SIS for c,ch day Of
! overseas service ana > lOi edcIl
day of home service. but in no
event could the credit exceed $500
in the case Of :: veteran who per-
formed no overseas service and
$G25 in the cast Of veteran who
$50. ..d overseas.
,'rior to September 80. 1925. any
n:ticnal bank. or any bank or trust
company incorporated under the
laws Of any state. territory pos
session or the District of Columbia,
would b. authorized to loan TO q
veteran on the certificate aay
'amount not IL excess Of 80 per cent
of the adjusted service credit plus
interest az i,2 per cent from Oc-
,tobcr l. lo222e Tho loan would have
to mature not later than Septt mb"r
80. 1925. and the rate Of int rest
charged by the bank could not cX-
ceed oy more than per cent a
year the rate charged Ut the cate
of the Joan for the discount OF
nincty-t!ay commercial paper hy
the federal reserve bank il the
federal reserve district in whi IN i:
iloca,ed the bank maxim. the I'd