Bisbee daily review., 1922-03-03

 because after that time, the bill as originally drafted by the committee provides for larger percentage of loan by the government and has not been changed by the subcommittee.
 Chairman Fordney and other com- mitteemen said they believed the new plan would meet with general favor, in and out of congress, for three req sons, which were summarized as fol lows in formal statement issued by Representative Green, of Iowa, rank ing Republican on the committee:
 Il. The needy veteran can obtain money as son as his certificate is is- sued, and in greater amount than is provided by the cash plan of the orig inal bill.
 "2 No large drafts to be made on the treasury until the expiration of three years.
 "3 No new taxes required
 Word went around house members that the compromise plan was accepti- ble both to President Harding and to the officers of the American Legion, and late today, after there had been informal exchanges of views among members in cloak rooms and corrl- dors, it was said that apparently strong sentiment in favor of the new proposal was developing.
 Representative Garner, of Texas, the ranking Democrat on the ways and means committee, said that while there probably would be some opposi- tion from the Democratic side, it was his opinion that a majority of the Democrats would support the amend ed bill. He thought the loan feature | would tend to expand credits to the extent of d half billion dollars, and thus result in some increase in the cost of living during the expansion period.
 At the treasury department, the committees compromise was describ- | ed by officials as 'the lesser of two evils" It was indicated that Secre- tary Mellon still was opposed to the enactment of any bonus legislation at | this time which would cause serious | drain on the treasury. but officials said this plan would make the financ- l ing much less difficult than would have been the case under the original cash plan.
 Members of the subcommittee esti- mated that the cash payments pro- posed in the case of service men en- | titled to not more than $50, would to- | tai $16,0O0,000. To this would be add ! eG several millions in administration costs and in putting under way the l other three options in the bill, the vo- cational training, home and farm aid, | and land settlement. It was stated ! however, that the total would be only | a drop in the bucket compared to the | $500 100000 estimate for cash pay ments as first proposed.
 oGvernor Harding of the federal re-
 serve board. was invited before the | subcommittee today to discuss the | proposed loan provision and he agreed
 tc draft form of this plan which is | expected to be ready for the subcom
 mittec tomorrow. Chairman Fordney l i'll an informal statement, said it was | the purpose so to safeguard the certt | ficates that they could not fall into
 the hands of pawnbrokers or shy locks" and to restrict the banks ir
 the amount of interest that could be charged.
 There was q suggestion that the in
 terest rate he fixed at a sum equal tc
 the re-discount rate charged by tho regional federal reserve banks, plus per cent. This is one of the details
 on which oGvernor Harding is work
 ing Another is the fixing of a pen alty against banks charging more
 than the interest rate fixed in the bill
 Where banks had loaned money; tC
 the service men and the loan iwitl . interest had not been paid by Septem
 Der 30. 1925, the banks could make s
 demand on the treasury for tho l, amount due them. The government } then would take them over under con
 ditious similar to those fixed in tn,
 original bill for federal loans to tn,
 Soldiers
 A plea for prompt action in con
 gress on bonus bill was made in tht