The New York herald., 1922-03-04

and bear a rate of interest OF 41a pei
cent. compounded annually.
I'm case of the death of the soldier
the full amount OF the value of ths
policy at the end of. twenty years shall
be due to the beneficiaries and pay.
able on the date Of the soldiers death
1t is specifically provided in the bill
that these certificates shall not be
honored If in the possession OF any one
other than the original owner. his
beneficiary or the banks above de-
scribed.
Cash will be paid to the soldier
who is to receive less than $50
"All other provisions In the bill as
originally introduced remain un-
changed except a few minor particu-
lars which are beneficial to the SOL
diers.
Three Benefits Emphasized.
I'm this change in the bill are found
three especially beneficial provisions:
1t will give the soldicr boys the op-
portunity to secure a larger lump sum
of money than they would have been
able to do under the provisions OF
the bill in it's original form 1t i'm
poses no immediate burden upon the
Federal Treasury and it will impose
no additional taxes upon the people.
1T is hoped and believed that when
these insurance certificates become due
and payable the money may be OBJ
tanned by the sale Of public property
and securities owned by the Federal
Government and without any special
charge on the Treasury This plan
seems to meet the approval of the
members of the House of Representa-
tves as well as the public generally"
Mr.. Fordney's statement that the
latest bonus scheme meets the gen.
eral approval of the public" was not
confirmed by members of the two
from the folks back home. Many
hundreds of kilograms were delivered
to Senator'S apd Representatives, not
only emphasizing objections to the
bonus raid on general principles but
specifically condemning the latest
scheme developed to finance it.
Many of the kilograms came from
bankers requesting specific informa-
ton on the many cloudy points" con-
tanned in the explanation of the new
measure given out by the members OF
the Ways and Means Committee. The
tenor OF these inquiries reflected a con-
currence of banking views that the
insurance certificate loan scheme
would cause great decentralization in
the banking business and open the
way for speculation which would Sc
riously disturb the money market as
well as general business interests.
Protests From Bankers.
Several bankers telegraphed their
Senators and Representatives vigorous
protests against the new Fordney
bonus plan on the ground that II
would let down the bars of the Federal
| Reserve System to spectators, loar
sharks and usurers, whose activities
have been pretty effectively suppressed
during recent years. Other objections
were that the new scheme would Sc
riously complicate banking conditions
and interfere with the financing Of
legitimate business enterprises.
A contrary view reflected by bonus
claimants was that the new Fordney
scheme will enable powerful finanSia
groups to absorb the certificates
through processes usually developed
10 the detriment Of the soldiers them
selves.
Mr.. Fordncy said tonight that he
expected the bonus bill to be- COM
pleted in time for submission to the
Ways and Means Committee nexi
Tuesday and for introduction a few
days later.
Joseph De Frees, president OF the
Chamber of Commerce of the United
States, said tonight:
"A general bonus paid through cer'
tificates is just as Objectionable from
| the point OF view of the Chamber Of
4 Commerce OF the United States. as
such a bonus paid in cash. The or
ganizations participating in tie ma.
| tional chambers referendum, which
closed on February 81, were as un.
mistakablc in their opposition to q
certificate plan as to cash plan
They cast 1921 votes against gen
eral bonus In ei her form, and only
467 votes in favor.
"The chambers opposition is to {
general bonus. however paid. Under
this certificate plan the Government
would have to provide $4,000. 900 ,00'
over a period of twenty years Will
somewhere around $1,000 100000 fol
use in 1926 and the greater part o
the rest in 1913. These obligations
are in effect proposed in substitution
for a cash bonus estimated, II ever,
cx-service man took cash, at si.50o.
600. 900 paid over the years 1922 ant
1923.
"In the two years before 1926 wher
Tie Government would have to fine
about 81 .0O0, 100000 there are upwar,
OF 5000 900 900 of debt to be paid O
refunded That a requirement o
ST, 900, ,0OO.o 900 will have serious con
sequences Is obvious"