Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-03-02
Suggests Certificate
CONTINUED from Paae One)

from next Oct. l. The SUBJ commit
tee had its first meeting late today
and it is understood, plans to call ii
Secretary Mellon and possibly mem
bers Of the federal reserve board To-
a discussion Of the whole proposal.
Emphasizing that the suggested
plan was in only the incubation
| state, Representative Longworthh o
| Ohio, member of the sub.commit.
tee, said it probably would be weei
| OF more before the SUBJ committet
| completed its work. Whatever pro
gram is agreed upon must be submit
ted to the other majority member,
for decision and it appeared prob.
| able that it would be at least !
| month before whatever bill wa!
agreed upon would be ready for tn,
| house
! Committee members said it was no
| proposed to change the vocationa
training, farm and home aid and LAND
settlement features of the Fordne,
bill some of them thought, however
that the certificate feature would b.
so attractive that a great maiorit,
! Of the men would elect it.
Under the plan now contemplated
the face value of the adjusted ser.
vice certificate would be equal to the
sum of the adjusted service pay OF
the veteran. Zone dollar a day for do.
! nestle service and s125 a day foi
foreign service, less the $50 bonus
paid at the time Of discharge), in
creased by forty persent plus inter
est thereon. for 20 years ah he rate
of four ane one-half per cent. a year
compounded annually. The total face
value thus would be approximate,
3.3S times the amount of cash that q
veterans would have received under
the cash feature.
Immediately after the certificate
was received. the service man could
obtain from a bang an amount equal
to fifty per cent. Of the total of The
adjusted service pay. If, at the ex-
piration of three years, the sum thus
obtained plus interest had not beer
paid by the service man. the bank
could make demand on the federal
treasury fot the amount due. The
government thus would make over
and carry the loan.
Provisions respecting loans to be
made by the government on the Ger
tlhc2tes after three years from their
issue would be retained in the bill, it
was said. Under these provisions, if
the loan were made within >fror1
three to five years after issue THE
amount could not exceed 80 per cent
of the sum of the adjusted service
pay, plus interest from the date of
issue at a rate of 1-2 per cent of the
pounded annually. If the loan were
made after five years. the amount
could not exceed 50 per cent of the
sum Of the adjusted service pay in
creased by 40 per cent, plus interest
from the date Of issue at the rate of
IL per cent compounded annually.
representative Longuorth ex-
pressed the opinion that the sug-
ge5ted plan If it could be put into
workable form would meet the APP
prevail of President Harding and also
of both the house and senate. He also
thought it would be acceptable to the
"a Wv A4NAA- i@4o Wow Mdo sinai ca
by several others of tho committee
who said the program would enable
men in immediate need to obtain a
fairly large sum Of cash and at the
same time retain to them more last
ing benefits perhaps than would have
been Obtained through ar all cash
adjusted compensation.
The agreement among the ways
and means committee republicans to
undertake the working out of
compromise plan was reached after
there had been another test of
strength on the proposal made b.
President Harding that the cash
bonus be financed by means of a
sales tax. 1t was learned today that
a motion to write such a tax provi-
sion into the bill was rejected late
yesterday by a vote of nine to six,
with one member absent
This left the question Of reporting
o bill without any means of fnan-
cins the cash payments. This was
vigorously opposed by some men,
1ers and the discussion finally got
around TO the basis of possible
compromise along the lines now I'M
der consideration by the sub-com-
mittee. The basis was suggested
after some of the members had COM
municated with officials of the
American Legion.
Restriction Of the cash feature
previously had been approved by
several members of the house who
served with the colors during the
world war and it was said there had
been a growing sentimen. among the
house members for this plan as
compromise. Representative Fish.
republican. New York, former SER
vice man, had drawn an amendment
restricting the cash to those taking
vocational training, the sick and the
unemployed. Another Plan suggest
ed was that OF insurance for all. OF
the men with sick and unemplby-
rient benefits and a monthly cash
payment after the beneficiaries
reached the age of s..
Mr.. Fish submitted his amendment
to President Harding today at the
White House and sai6 afterward
that Mr.. Harding favored restric-
ton Of the cash feature and had ex-
pressed the hope that congress would
not be swept off their feet on the
bonus custom.