The New York herald., 1922-03-13

will be chosen and in what pro-
portions.
With the cash bonus eliminated
except to the extent of payments
of $50 or less, the provision of the
bill that offers the nearest approach
TO cash is the plan for farm and
home aid. u.der which the veter-
ans would be able 10 get, beginning
January /. 1923, for the purpose OF
purchasing, improving or making
payments on city or suburban
home or farm, the full amount of
cash that would have been payable
on cash bonus, increased by 40
per cent.
The plan for land settlement aid
provides for the development of
reclamation projects and for al
lowances to veterans who elect il.
These two plans offer so many
attractive possibilities to veterans.
as well as to persons interested in
the development of home building.
reclamation and other projects. that
their cost during the first few years
of the operation OF the bill is sure
to be substantial. 1t is impossible.
OF course. to estimate the proper
ton of the veterans who will choose
these plans as distinguished from
the certificate plan and the voca-
tional training plan, but the Gov
ernment actuary has prepared
tables of estimated cost on the as
sumption that 10 per cent will
choose the certificate plan, % per
cent. the farm and home aid plan.
per cent. the vocational training
plan and per cent. the land set
tlement plan.
Attractive Redempti Provision.
In the calculations as to the
cost of the certificate plan. it is
assumed that half of the veterans
will borrow on their certificates
from the banks and default on their
loans, in view of the attractive pro-
visions for cash redemption in case
OF default. The table showing the
estimated direct cost OF the bi,l on
this basis for tho twenty-year
period from 1923 to 19f3 is at
tached as Exhibit /.
a further table showing in detail
the cost Of the certificate plan on
the same basis. as To the 10 per cent.
of the veterans taking certificates,
is also attached as Exhibit 2.
1t appears from the tables that
on the basis assumed by the actu-
ary the total direct cost to the Gov
ernmont I'm the fiscal year 1923
would be s2s9954.o0o: in the fiscal
year 1924, s21s.A40.o0o In the fis-
cal year 1925. sI2S, S,ols. 900. and IN
the fiscal year 1926. for the most
part by October Is. 1925, when the
adjusted service certificates used
as security for bank loans would
have TO be redeemed. s615.s22 900.
This would mean total payments
within about three and a half years
Of over $1,000. 100000.
These estimates take no account
OF amortization or other reserves
against certificates 20 remain out
standing after the iiscal year 1926.
which rou,d asd at least 5000 GOO
a year % the current charges. or o.
possible additional costs under the
land settlement plan IL the rcclama-
ton projects therein authorized
should be carried through. 1t IL IS
timatcd tia. about sfo0, 900 900 per
annum would be required after 1923
II these reclamation projects should
be pressed.
Possible Cost Of BiiI.
In order that the committee may
have full information as to the pos
siblc cost OF the bin to the Govern
ment there IS also inclosed table.
designated Exhibit 3, which ind
Gates the total cost OF each OF the
plans In case All OF tho veterans
should choose one plan. but makes
no attempt 70 estimate what plans
tho veterans would choose.
II appears from this table that If
all the veterans should choose the
certificate plan the total face value
OF the certificates would amount 70
over $4,000. 900, 900. distributes over
twenty years, and that " all the
veterans should choose tho farm
and home aid plan the total cost
wouid amount TO s2.Oe3. 900. 900 with
In the next two or three yearr.
There is attached further table,
designated Exhibit FTt. which gives
IN further detail the estimates as 10
the maximum cost each year 10 the
Government unGer each OF the OPP
tional plans. with no allowance
however. for Girect borrowing from
the Government under the ccrtih-
cate plan.
.y.,....- 4.t.r.. .t.z... a... 4h&rr ~Inar
~. namely. that no one can even ap-
proximately estimate the direct cash
cost OF the proposed bill y the Gov
orument for the next few years. and
that hy January J. 1925. II will prob
ably cost over $1,000. 0.o00,0o0. ana
NAV cost very much more y enough
veterans should elect TO take farm
and home aid.
Most Serious Feature.
Apart from tho direct cost OF the
bill a most serious feature l. the
provision for bank loans upon adj
iusted service certificates during the
period between its passage and Sep
tcmber 90. 1925. The effect 81 this
provision is TO transfer tho cost of
policy loans from the Government 10
the banks and TO place in the banks.
20 tho extent that the ex-service
men are able 20 obtain loans from
them. mass OF unllauid. non-ncgo-
table paper. upon which the banks
Continued 90 Page Two.