New-York tribune., 1922-03-04
Reduction From4O foCuts
Certificate Plans Cost
s5OO.OOO, 600, Without
Altering Main Features
subcommittee to
Report ON Tuesday
House Majority TO Hasten
Action; rationale. of c.
Calls Proposal Unwise

rh< Tr,buae's Wush;noton Burcou
wlsuINGTON, March 3.-The House
w.v,and Means subcommittee to-day
;.,r.d $500, 100000 off the expected
-, of the soldier bonus under the ''ad-
;.,,sd service certficatc' plan. 1t had
h.sn MANNED to add a premium of 10
-, cent to the amount of adjusted
.,rvice pay due each soldier, but the
subcommittee decided that % pcr
nrt premium would be generous
.0oueh. This would still leave the GER
.scste plan more attractive to veterans
than the original cash proposal.
A. the same time ii was felt that the
difference between 25 per cen. and 30
ner cent would mean great saving to
the Treasury ard probably cause a
wider distribution Of the cost burden
over the othe. options, farm and home
aid. vocational training and land settle
ment. In making the change the sub
committee did not alter the other ele-
mep,s upon which the value of An ad
iusted service certificate would be COM
puted.
Details To Be Complete Tuesday
1t was Indicated that With this revi-
SION agreed upon there are now only
some technical details to be settled.
sith the aid Of Treasury experts. upon
such angles as the terms Of the lean
privileges, rates Of rediscount and pro-
lection of the titles Of the certificates.
The subcommittee expects to complete
this work by next Tuesday and coll IN
Immediately the full membership of the
Ways and Means Committee, including
the minority.
The certificate plan. as row agreed
upon unanimously by the Republican
majority in the sub committee and as
il will be reported to tho full COM
mittee Tuesday, calls for the issuance
o. twenty-year interest hearing certifi-
Gates having a loan value as one Of
the four forms of bonus offered to eN-
service men. The original 'vocational
training aid, home and form aid and
'land settlement aid proposals are re
tanned. The face value of the ccrtifi :
Gates will amount 10 adjusted service
pay plus a premium of 20 per cent
compounded annually for twenty years.
i the amount Of pay due is less than
$50 this amount would be available in
cash.
The committee plans to specify that
loans made BY banks that accept the
eeFtlhcates as security shall not ex-
tend over period of more than three
years and shall not hear interest more
'nan per cent higher ttS1 the cur
rent redlscount rate where NE bank is
located. Three years after the plan
vent into effect loans not repaid by
INC borrowers would be made good by
'ha United States Treasury. In these
cases the Treasury would pay the bank
'ae money due, and if the face value
y. 'ne certificates was greater than the
amount OF the bank loan the difference
Veuid be paid to the veteran.
No Estimate as to Loan
no effort has been made by commit
Npmen to estimate row much money
wouid be borrowed BY former service
IeI on their certificates. either from
az VIC 4liSl lultc Years nc plan
Is IN operation or in the subsequent
years, when the borrowing would be
SOne T directly from the United States
';l,.iasury. They feel that it is mpos-
s'ole to figure out how many service
.ls men among those who select The Ger
.n .saeate plan in preference to the other
sasee options would elect to borrow
money on their papers.
.aalrmaa lordnes issued a state
me.t saying:
=. II Is hoped and believed that when
s sneSe insurance certificates become due
an and payable the money may be secured
~ 'he sale of property and securities
''l v"heu by the Federal government and
ron"nr any special charge on the
at,easury. This plan seems to meet
h.. S,." me general approval of tho mem
oeis so OF the House Of Representatives
rM wen as the pubic generally"
m. me Chamber Of Commerce Of the
,rhss una'ea States to-day launched the first
.aos'antisl attack against the ccrtif
S3'e p'ah' A return to war conditions
'ecntinsed on next pauel