The New York herald., 1922-06-01

The McCumber bonus bill which was
adopted by the Senate Finance Com
mittee to-day and ordered reported
does not differ radically from the one
framed by the Fordney committee and
passed by the House.
The only important change was the
elimination of the entire land settle
ment option which was declared by
Treasury officials to be the most
dangerous feature of the bill as 1t
could, were all the veterans to select
It. cost the Government S1s,00O,0oo ooo'
In lieu of the land settlement clause
the following provision was inserted:
"On the opening of public or Indian
lands to entry. or the restoration to en-
try of public lands heretofore With
drawn from entry, such opening or
! restoration shall. in the order therefor.
u-proviqe for a period of not less thar
sixty days before the general opening
OF such lands to disposal. in which
period veterans who have chosen the
benefits of this title the land settle
ment) shall have a preferrsd right OF
entry under the homestead or desert
land laws. If qualified thereunder. ex-
cept as against prior existing valid set
tlement rights and as against prefer
ence rights conferred by existing laws
or equitable claims subject to allowance
and confirmation.
"Such preference right for such period
shall also be accorded on all reclama-
ton projects now in existence or here
after established, whether such recla-
nation is made by irrigation. drainag 2
or other method.
Provision for Payment.
"IJpon certification from the Secretary
of War or the Secretary of the Navy, as
Ionrovided In Section 1903. approved by the
Secretary of the Interior. there shall be
paid by the Secretary of the Treasury,
on or after July /. 1923, to the veteran
designated therein. in one payment or
in installments. an amount equal to his
adjusted service pay increased by Is
percentum. Such payment shall be
made for the purpose. and only for the
purpose Of enabling the veteran to make
payments in connection with the lands
as 10 which preference has been given
under this section, or for the improve
ment of any such land. and shall be
made only II the Secretary of the In
tsrlor has suitable assurance that the
money will be expended for such pur-
pose"
The other changes made by the Nc
Cumber committee are minor ones. COM
PEELED principally by the delay in the
passage of the bill. AS Mr.. Fordney
anticipated that the bill would be en-
acted into law Immediately the GER
tifcates given the veteran were to be
dated October /, 1922. AS it now seems
improbable that the bill can be enacted
into law until late In the summer. II
at all. the dates were changed to con-
form with the date of passage.
IT.. f~fn I'm y rn-
quiring application by veterans for the
certificates on or before July /. 1928,
was therefore stricken out and clause
inserted providing that application can
be made a. any time after the passage
OF the act.
Under the McCumber bill the certif-
cate shall be dated on the first day of
January or July following the date OF
filing OF the application.
Not Liable TO Forfeiture.
The veterans will not forfeit their
certificates under the McCumber bill
should they fail 10 repay loans obtained
on them as the Secretary of the Treas
ury is authorized to restore the certih-
cate to the veteran in whose name IL was
issued at any time prior TO its maturity
upon receipt from him of D the
amount paid by the United States to
the bank in cancellation OF his note and
CD interest OF such amount from the
time OF such payment to tho date OF
such receipt at AZ per cent. per annum
compounded annually.
Under the Fordney measure the Sec
retary would be called upon to return
the difference between the value OF the
certificate and the loan negotiated at
the bank 10 each veteran. IL the vet
erans. under the McCumber measure.
fail TO make payments or repayments
on loans when due the Secretary of
Treasury at any time prior TO the ma
turity OF the certificate VIII cancel the
note and restore the certificate 20 the
veteran In whose name IL was issued
upon receipt Of the total amount due
thereon. principal and interes. at "A
per cent per annum. compounded an
nualIy. upon all payments that were In
arrears.
Under the Fordney measure II the
veteran failed 10 make such payments
or repayments when due and such de-
fault continued for the period OF one
wear. the Secretary OF the Treasury was
called upon to declare the certificate 70
be forfeited and surrender the note TO
the veteran. When the certificate IL
forfeited and he has borrowed an
amount less than the maximum author
lied under either subdivision the Sec
re<ary of the Treasury would pay to him
50 per cent. OF the difference between
what he borrowed and maximum which
he was authorized 60 borrow.
Under the McCumber b,;i the veterans
will not be permitted to borrow from the
Government on their certificates before
January 1, 1926, as compared with
october ], 1925. according to Fordney's
plan.
The borrowing clause In the Mccum-
Der measure will permit veterans on
January 1, 1925. to- borrow SO per cent
OF the value of the certificate plus Az
per cent. interest from the date OF the
certificate to the time che loan is made
When the certificates are three years
and less than six years old. Mr.. Nc.
Cumber would permit them to borrow
SIS per cent. of their certificate plus AZ
. per cent. interest from date of issue in
Nhe time the loan is made II the loan
N>made at any time after six years u.
veteran would be allowed 10 per cent
OF the certificate increased by 25 pc.
cent. plus interest at the rate Of "a
per cent from date of certificate GO dat,
Of the making of the loan compounded
annually.