The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-03-02
ADJUSTED SERVICE
CERTIFICATES THE
FEATURE NEW PLAN
Would Enable Former Service
Men to Obtain My,ney From
Banks on the Certificates.
10 HEAVY DRAFT ON
TREASURY NECESSARY
FouId Remove Fundamental
Cause of the Differences in
Congress Over Question.
(By The AssooIatsd Press)

WASHINGTON, March 1.--Elimina-
In OF the cash feature OF the soldiers
buus bill but under a plan which
wuld enable former service men TO
ofuin funds from banks on adjusted
satice certificates immediately after
the were issued, is under considera-
tio by majority members of the house
was and means committee as pos
sitb solution OF the bonus problem
his would make unnecessary any
heefy draft on the federal treasury
durng che next two years while the
I rsfnding of the $6,5oo,o0 short-dated
debt Is in progress and, it was said
would remove the fundamental cause
OF tie differences In congress and be-
tween the administration and congress
over the bonus question.
Tia task OF working out the plan
waS assigned today 70 q special sub
oon1nitteA which was appointed by
wfas was described as "unanimous
consent" after the majority members
had failed TO agree on any method OF
financing the cash payment.
COMMITTEES members said IL was not
proposed to change the vocational
Faiping. farm end home aid and land
0>Sfi)enaen features OF the Fordney
some or them thought, however
the certfacats feature would be
ath-actfve that great majority OF
<Hh would elect that option of the
sih
Under Ahe plan now contemplated the
face value OF the adjusted service GER
tfncsee would be equal to the sum OF
the adjusted service pay OF the vet
eran (S1 day for domestic service
and si.25 q day for foreign service less
the SEQ bonus paid at the time OF dis
charge) increased by 40 per cent plus
anorease thereon Sor 90 years at the
rate OF 4sa per cent a year, compound
cd annually. The total face value
rnus would be approximately S.ss
times the amount OF cash that vet
eran would have received under the
cash feature.
Immediately after the certificate
was received the service man could OBJ
tain from a bank an amount equal to
so per cent of the total of tho adjusted
service pay. If at the expiration OF
three years tho sum thus obtained plus
interest had not been paid by the
service man the bank could make de-
ynand on the federal treasury for the
amount due. The government thus
would take over and carry the loan.
Provisions respecting loans to be
made by tho government on the cer-
tifcates after three years from their
issue would be retained in the bill. il
vas said. Under these provisions, If
the loan were made within from three
TO five years after issue, the amount
could not exceed 80 per cent OF the
sum Of the adjusted service pay plus
interests from the date OF issue or al
rate of AS per cent compounded an
nually IL the loan were made after
Eve Years, the amount could not ex-
ceed so per cent OF the sum of the
adjusted service pay Increased by 90
per cent plus interests from the date
of issue at the rate OF ~ per cent
compounded annually.
Representative Longworth expressed
the opinion that tho suggested plan il
ii could be put into workable form
would meet with the approval of
president Harding and also or both
the house and senate. He also thought
,t would be acceptable to the service
men. This view was shared by sew
eral other members of the committee.
who sid the service men would be
able, Il IN urgent need. TO obtain a
fairly aarge sum OF cash and at the
same time retain TO them more last
ing BENEFITS perhaps that would have
been obtained through an ail-cash ad-
3usted compensation.