The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-04-26

CONTINUED from First Page,
se an embarrassment to the gov
srnment and believes the house bill
Is the better.
Fourth. the senate committee
nroposes also that even if the total
Sue an ex-service man amounts 70
500 or less, he shall be privileged
~ choose the adjusted certificate
nIan. This, OF course, does not dis
nlease the American legion.
Home Purchase Aid.
Fifth, aid in the purchase of a
home or a farm as covered in the
house bill would enable man with
5000 due him, to get the sum ad-
yanced toward a mortgage. The
senate committee suggests that
s400 be the limit and that the pay
ments be made in installments of
5000 a year beginning January,
1929. The American legion feels
the total amount should be adj
yanced at once so that it can be
more useful as many homes can be
bought by the payment of $500
down.
Sixth, the senate committee has
proposed that as an incentive to-
ward the taking of the certificate
plau 25 per cent to be added to the
total amount on the face of the
certificate, this being the equiva-
lent of Az per cent interest COM
pounded in 20 years. But the Amer
lean legion counters with the sug
gestion that it be made 40 per cent,
arguing that this was the original
percentage in the bill which was
twice reported favorably by the
senate finance committee and which
passed the house a year ago.
Seventh, under the house bill the
loans upon certificates would ne
made at the banks The senate
committee would permit a service
man to borrow from the govern
ment 25 per cent the first year,
30 per cent the second year and
80 per cent during the third year,
increasing five per cent each year
until it natures. The borrowers
would have to pay four and one
half per cent interest The Amerl-
can legion has not taken sides il
this phase of the matter but it is
apparent that government financ-
ing would mean an administrative
experience, while borrowing from
the banks would not add to the
governments cost, so naturally the
legion would probably prefer the
borrowing to be done through the
banks as proposed in the house
measure.
May Drop Reclamation.
While some members of the
American legion who COME from
Industrial communities are not
particularly interested in land set
Element there are thousands of ex-
Hervice men from the west who
want it. The American legion
convention went .on record in ia
vor of five ways of compensation,
and one of these was reclamation,
so it is difficult for the American
legion leaders to agree to elimin-
ate reclamation though it would
not be surprising if the senate
committee finally did so.
The legion has made it clear to
the senate finance committee that
it wants to see made as attractive
as. possible the productive features
of the bill and for this reason rec
ommends that home and land aid
and the 20-year certificates be
made worth 40 per cent more than
the amounts due if certificates Of
credit are selected by service meu.
Similarly the vocational aid plan
as embraced in the house bill is
preferred by the legion.
AS to the financing of the cast
features of the bill, the legion
maintains that it should not sug-
gest to congress the way the reve
nue. should be raised. The senate
committee has proposed that
amounts obtained from foreign
governments on the war debt
shall be used to finance the bill.
The legion men understand that
the British government will pay
its interest this year and that when
part has been applied to sinking
fund, the remainder can be used by
the treasury for general purposes
and this would include the obliga-
tons of the hOnuS act