Albuquerque morning journal., 1922-03-03
SOLDIER BONUS PLAN
VIRTUALLY AGREED ON
BY SUB-C0M MITTEE
Continued from rage one)


"Two--No large drafts to be
made on the treasury until the ex-
piratlcn Of three years.
"Three-No new taxes required
Plan Is Acceptable.
Word went around among house
members that the compromise plan
was acceptable both to President
Harding and to the officers Of the
American legion, and late In the
day after there had been informal
exchanges OF views among mem
bers in cloak rooms and corridors
1t was said that apparently q strong
sentiment in favor OF the new pro-
posal was developing.
Representative Garner of Texas,
the ranking democrat on the ways
and means committee. said that
while there probably would be
some opposition from the demo-
cratic side, It was his opinion that
a majority Of the democrats would
support the amended bill He
thought the loan feature would
tend TO expand credits to the ex-
tent Of half a billion dollars and
thus result in some increase in the
cost Of living during the expansion
period.
"Icsser of Two Evils"
At the treasury department. the
compromise was described by Of
ficials as "the lesser of two evils"
It was indicated that Secretary
Mellon still was opposed to the en-
actment Of any bonus legislation
ut this time which would cause a
serious drain on the treasury, but
officials said this plan would make
the financing much less difficult
than would have cen the case
under the original cash plan.
Members of the subcommittee
estimated that the cash payments
proposed in the case Of service men
entitled to not more than $50
would total 100000. To this
would be added several millions in
administration costs and in putting
under way the other three options
in the bill. the vocational training,
home and farm aid and land
1t was stated, how
ever. that the total would be only
a drop in the bucket compared to
the $300,000,000 estimate for cash
payments as first proposed.
Governor Harding of the federal
reserve board was invited before
the subcommittee today to discuss
the proposed loan provision and
he agreed to draft a form of this
plan which is expected to be ready
for the subcommittee tomorrow.
Chairman Fordney, in an informal
said it was the purpose
so to safeguard the certificates that
they could not fall into the hands
Of pawnbrokers or "shylocks" and
to restrict the banks in the amount
Of interest that could be charged.
Interest Rate.
There was a suggestion that the
interest rate be fixed at a sum
equal to the rediscount rate charg-
ed by the regional federal reserve
banks, plus 2 per cent. This is one
of the details on which Governs r
is working. Another is
The fixing Of a penalty against
banks charging more than the in
terest rate fixed in the bill.
Where banks had loaned money
to the service man and the loan
with interest had not been paid by
80. 1925, the banks
could make a demand on the treas
Iry for the amount due them. The
then would take over
the loan under conditions similar
to those fixed in the original bill
ror federal loans to the soldiers.
A plea for prompt action in con-
gress on a bonus bill was made in
the house today by Representative
democrat. Massachusetts,
who declared that certain financial
interests in New York and Boston
had blocked passage OF the bill
FOR months" He contended that
The house should be given an op-
to vote on the proposi-
ion without delay and predicted
hat a bill would sweep" through
both the house and the senate.