The Washington times., 1922-03-02
G. o. p. Congressmen In Ac-
cord on SettIement-lnsur-
ance Alternative.
By A. o. HAYWARD,
International News Service.

International News Service.
Every ex-soldier in the country
will be granted a cash bonus of
$50 direct from the United States
Treasury if he wants Il up der the
new plan worked out today by
the bonus section of the House
Ways and Means Committee.
Committee Agrees.
Above $50, the soldier beneficiary
would be required to take an insur-
ance policy carrying a loan feature.
National banks, banking associa-
tions, and trust companies coming
under Federal supervision, would be
required to discount these policies
for so per cent OF their face value
for a period Of three years from date
Of issue.
There was complete agreement, 1t
was said, among the seven members
of he committees bonus section OH
this new plan. and Congressional
leaders were confident that ultimate
ly the bonus will be paid on these
terms, or terms closely approximate
ing them.
Gov. w. P. G. Harding, Of the Fed.
eral Reserve Board, and Treasury
experts were again before the corn.
mittee this morning. They estimated
that the $50 cash feature Of the new
plan will not require more than $16.-
000, 900 drag on the Treasury the first
year. This could easily be absorbed.
The chief feature OF the plan as
agreed upon Is that 1t defers for
three years at least the big drain
on the Treasury that would have
been necessary under other plans.
Insurance Desirable.
1t also takes care of. in a way,
the American Legion's demand that
some cash feature be included, so
that those ex.service men who are
desperately In need may realize
something Immediately.
The plan is so framed, however,
that the insurance feature Is the
most desirable one and one which
the trainers hope will prove most
appealing TO the great body Of ex-
service men.
It was learned today that Secre-
tary of the Treasury Mellon re-
CARDS the ash-insurance plan as a
lesser evil" although he Is still
opposed to direct cash payments.
Officials of the Treasury Depart.
ment said that such payments
would not constitute such a heavy
drain upon the Treasury or upon
banks which would cash or loan
money on the certificates held by
ex-soldiers.
The new bonus plan is being
whipped into shape today by experts.
! The plan we have adopted, said
! Chairman Fordney, adds no addi-
! tional taxes on the people to pay the
bonus. relieves the Treasury OF all
! immediate charges over SIG 900, 900,
! and enables the soldier beneficiaries
| to get cash on their insurance certifi'
| Gates which must be accepted for
bonus in excess Of $50. The bonus
payment OF 81 a day for home and
$1.25 a day for overseas service up to
a maximum Of 500 days service is re-
tanned.
VIII Go to House.
"The previous bonus payment OF
! $50 Is to be deducted from the new
bonus claims.
"The bill will carry a new loan pro
vision to the adjusted service Ger
tlficate which will enable holders OF
such certificates to borrow from any
national bank, or bank or trust com
pany Incorporated under the laws OF
any State so per cent Of the face
value of the certificate prior to Sep
tember 80, 1928. This date was fixed
because after that time the bill as
originally drafted by the committee
provides for a larger percentage oi
loan"
Fordney said the bonus bill would
be presented to the House as soon as
It's final drafting is completed u
will not be sent to a CRu"uS Vt ll"u.'
Republican members.