New-York tribune., 1922-02-08
Offers Veterans a Blanket
Policy for Sickness, Ac-
cident, Unemployment
and Care Of Dependents
Full Cost ; Billion:
sl00.0 .000.00O 30 Start
Harding Asks Fordney to
Consider Idea as Way
to Cut Business Strain
Bv Carter Field


ae-bert Hoover, Secretary Of Com
rsrcs. lai suggested new bonus
,,ar. designed 20 prevent the Serious
sreo.s On prosperity which he believes
voyld follow in the wake Of any cash
lorus plan.
nr. Hoove~'z plan. which has beer
disclosed to leaders on Capitol Hill by
Chairman Forfuey Of the House Ways
,rd Nears Committee. to whom the
,lsn vas sent ny President. Harding,
orovides no cash feature at all, bat
rrotccts the veterans through sort of
sankea insurance against unemrloy-
menf. sickness ard accident and pro
tects troir dependents in the event Of
.he soldiers death.
M Hoover included with his plan
repor's vh'ch had been made on it by
aetusries o. scveral insurance COM
ranlcs, or whom he had called to
learn what the plan would cost. In
these estimates what might be termed
The base pay Of $50 d month was taken,
but Mr. Hoover pointed out in submit
ting the plan % the Pres idcnt that this
probably would not be enough. and
that it was ? fairly simple calculation
to find out iust what the plan would
cost estimated on any base pay. That
IS 20 say. Il $50 - month were TO be
oeemed sufficient. then the total would
haye to be multiplied BY two, and 50 on.
Capital Cost s3,oo0,0ou, 600
The insurance actuarics figured that
what they called the capital cost of the
entire plan would be 81 900 coo 600.
Nore interesting 10 tho leaders IN Con-
gress IS their estimate as to the appro-
lriation which would BE- necessary for
the first year. This IS Just about
.lo0o00n0o. This appropriation would
Rave 10 be increased slowly from year
tc year. as Tive age of the veterans IN
creased
Defenders Of the plan in the House
and Senate pointed out that IL would at
once take care of veterans who are
unemployed. sick, suffering from acci-
.'~' an1 Yet net impose u trena an dous
burden on the Treasury. There is
'Iu,-4t f., very general uncasinoss in
aoth houses over the present business
conditions OF the government. While
mis- Is worrying The Republicans more
nan the Democrats, since The voters
are apf o blame the party in power
or bad tunes, II is Worrying some Of
Inc Democrats, too. as the voters are
apt also to blame their own Congress
nan If 'hings are not &oiuG to suit
them
Fears frdustriai Showdown
1t is 5ae belief of some officials in
the Adm nj tration. notably Mr. IEoov-
IT, Whose Judgment as to business af-
airs is hight = respected, that any plan
nj raising tae money for the cash
bonus which has so far been suggested
Is very i'scly 20 result in seriously
loving down tire wheels Of industry.
already no; proceeding at very rapid
pace. For example. it is feared that
'he tx ON gasoline of three cents a
gallon. plus THE tau on automobile
horsepower, tNo suggestions which
nave more support. apparently, Than
ruch money. would be a terrible blow
t. the automobile industry, and. Incl
denially. to OIL producers.
It is feared tha, these taxes. imposed
a' a time wheu the automobile indus
wv hss heen forced 20 cut prices tre-
m'naousit 'n prioy to gain business,
would cause such an additional slump
"a purchases of automobiles as to
.",ow some tens of thousands cf ncn
now employed IN the automobilo facto-
.,'S our OF work. carrying with them
.ae men In allied trades and cutting
sne demand for steel and other prod
.eS used by he automobile manufac-
turers.
Some Of the men who have made a
vose study Of the business situation
na nae genuinely alamcd over the pros
rsS.s % Of the results of this tax and
"AfltfS WINCH lr..r.. i
'I'or q tire bonus advocates. Their
..L.oomy Views have alarmed members of
s'e senate and House. but there is no
.eis'aSing the fear on Capitol Hill that
- w. S1'e against any plan which makes
political suicide.
cutting Political Throa.s
Not only tNoso who are Going 70 vote
lor the bonus. no matter how thov
.S 1--we 10 raist the money, feel that way
% spout It, but those v1o are Going to
Jse sgainst II arc very generally con-
sol'.. u tnat they are cutting their
~ taroats by hat action.
.rsi,. 4n' Hoover's plan, however. appar-
tbs... Is not meeting the problem As
rsSs pollflclauS see it. The belief on
Nt.'ol NH IS that the veterans want
t,.s tHsA honus-money IN hand-and
H. T,aS hothlng else will satisfy them.
tbst bc'e ls Lttle credence given the hope
e;rs an an aiternative plan, which would
eitSs s sne soldier the option of taking
seysra, 'he ready money or any one Of
an" 1a other features. would result in
doi,,. .0nslderable number of veterans
nonssv hong anything else than take the
nonorsy n.ones'y per cent will take the
thonsss, one man who has talked with
Lsp,oo~'us OF members OF the American
Ways lg!o the writer to-day. The
Ing y, anu Means Committee is hgur-
es no. cent will take the cash. but this is
sres, generally believed, even in con