The New York herald., 1922-03-17
.&,O9S,719,35O BILL
FOR BONUS in House
Measure ReintrOduced by
Fordney, Who Submits
Majority Report.
HE MAKES SIX CLAIMS
No New Taxation Is Neces-
sary, Says Chairman
of Committee.
EXPLAINS EACH OPTION
Not More Than S275,OO0,0 900
in Loans on Certificates, Is
EXpOnent's Belief.
EXPLAINS EACH OPTION


New York Herald Bureau.
Washington. ID. c., March 10.
Chairman Fordney of the House
Ways and Means Committee reintro-
duced in the House to-day the re-
vised soldiers bonus bill, and at the
same time submitted a majority re-
port explaining the measure in detail
These advantages were claimed for
the bill by the committee:
First.-No new taxation or Is
suance of securities is at present
required.
Second.-It provides for the vet
eran in need method OF obtain
ing aid.
ThrG.-The amounts required
each year. after July l, 1928. are
small compared to those which
have heretofore been met and can
be provided without any difficulties
or arrangement of our financial
situation.
Fourth.-The plan tends to pro-
mote saving habits among the vet
Grams.
Fifth.-.It protects the veteran
himself and his family from mis-
fortune in the future.
Sixth.--It will create a class of
home builders who will greatly in
crease the mass of property in the
country.
1t is further stated:
while perfect unanimity could not
be expected as to all the details of the
bill the majority Of the committee
agrees the plan in general meets the
a approval of the soldiers and of all
those who are in favor of grs nting to
them additional compensation in any
form whatever.
The Estimate in Detail.
"A commercial argument made
against the bill in it's present form Is
that the country is not financially sit
uated so as to carry out any plan OF
adjusted compensation at this time.
The same objection was made two
years ago, dIiQ the
arises as to when the country will
be ready TO do anything IL 1t is not
ready now"
The committee estimates that the
total cost of the bonus for the next
five years will be s4.Oss. rs. $50
1t is based on the assumption that it
will require s16.ooO.0o0 to pay the short
term soldiers the $50 cash bonus.
s517 571 900 to pay the insurance on death
claims s3,154. .s23, $50 to pay the insur-
ance certificates which mature. $52.-
325, 600 for vocational training. $1S6. .000.-
900 for farm and home aid and $112, ,000. 600
for the land settlement aid.
The committee bases its computation
on The assumption that 70 per cent.
of the ex-service men will select the
insurance certificates. ga per cent. the
vocational training option. 10 per cent
the home aid feature and IA per cent
the land settlement option.
Continuing the report says:
The majority OF the committee be-
lieves there is no question as to the
ability of this country to meet the re-
quirements of this bill without in any
way affecting business conditions in
juriously. The United States profited
largely by the European war for two
years. After 1t entered the war many
large fortunes were made. many greatly
increased and an immense number OF
people profited largely by the war.
while this country. by far the richest
and best situated financially Of ali the
nations on the globe. has been hesitat-
ing and delaying the matter of giving
additional compensation TO Its soldiers.
other countries, and among them some
Of those which have suffered most by
the war and are now the poorest have
acted promptly in this respect"
says Banks Can stand IL.
Speaking OF the proposed insurance
certificates. the report says:
",The majority of the committee is OF
the opinion that the amount borrowed
on these certificates will be compare
lively small Although they constitute
ideal securities for the savings banks.
fny bank may. II II sees lit. inquire into
the necessity OF making the loan before
IL is made. and IL is believed a majority
Of the soldiers will not, in any event.
ask for loan upon the certificates un-
less they have some special need for
the money
"It IS estimated by the committee and
Treasury that 20 per cent. OF the vet
erans will take the certificate plan.
Assuming this 10 be correct. the utmost
that could be loaned by the banks, 1: all
applied for loans. would be s550.000,-
600. The committee feels safe In as
suming that not to exceed one-half of
this number cas- per cent? will make
application for loans during the whole
period In other words, that not more
than S275, 900. 900 will be borrowed from
the banks, and that this sum Is much
more than will be out at any one time.
THE total amount OF the assets OF
The national banks is approximately
$40. 600. 000. 900. The assets OF the other
banks are larger. making total OF
! bout $40, 900. 100000 The percentage
of money which will be drawn out OF
the banks BY this plan is therefore very
slight compared to the total amount Of
the assets Of the banks--in fact less
than seven-tenths of per cent
1T has been suggested that some plan
of tnxation to meet the estimated ex-