New-York tribune., 1922-03-07
Mellon Places
New Hurdle i'm
Way Of Bonus
Will Oppose Proposal With
the Adjusted Service
Certificate Option as
Planned by Republicans
Bill Delayed Several Days
Committee Working 10 Make
Its Wording Clear and
Proof Against Attack
From The Tribune's Washington Bureau

From The Tribure's Washington bureau
WASHINGTON, March G. Fresh OBJ
stacles were encountered by the bonus
bill to-day, which resulted IN the fail
ure Of Chairman Fordney of the Ways
and Means Committee 20 introduce the
measure in the House as promised.
The principal hurdle came when it was
learned that the Treasury Department
would oppose the measure with II :, ad-
iusted service certificate option as
framed by the Republicans. There is
no certainty now that the bill will be
introduced for several days to come.
Friends of the bonus received au-
othcr scare to-day when it was report
ed that the President. in a conference
with Mr.. Fordney, had found several
additional objections to the bill. This
was denied later and the statement was
made that the delay was caused by the
fact that the clause dealing with loans,
with the certificates as collateral. was
not clear enough and that the commit
tee was devoting its time to making
the measure proof against assaults.
Chairman Fordncv said. however, that
the principle of the bill was not being
modified.
The entire day, he said. was devoted
to Tightening up the wording, cspe-
justed service certificate plan. There
yet remains possibly half of the bill to
be read.
Measure Not Clear
Much time was given to making iron
clad the specifications governing the
process by which man may obtain
loan on a certificate. In order to pre-
vent any possible swindlng schemes
,,+n o+i
between veteran, banker and the Treas
ury the bill invalidates any certificate
held by any one other than the person
named on its face or the bank which
may make the loan. The measure Is so
binding on this point that even in the
hands of reputable banking institu-
tion the certificate would be valueless
if the money had not been advanced di-
rectly to the soldier. The average
loan will be so small there will be no
need for rcdiscounting, and the bill,
| therefore, makes every transaction an
air tight matter between the soldier
and his bank.
Representative Nicholas Longworth,
of Ohio. prominent member of the
committee, discussed this part of the
bonus bill tonight. He said;
'Let us suppose that a man is en-
titled to a certificate whose face value
is $500. He needs cash, and SO takes
it TO bank and borrows so per cent
of its face value, or $3.50. He leaves
! the certificate as collateral.
Made Non-Transferrable
''lf he repays the bank, we'll and good
1t is entirely matter between him.
self and the bank, and no one else can
enter until he defaults, and even then
no one but the United States Treasury
Should this man not pay back the
money he has borrowed, then, after
three years, the bank could bring the
certifi cate to the government and get
back the $3.50 with interest. The gov
ernment then cancels the certificate and
gives the man so per cent of the diff
/ ference, the other $3.50 of the $500"
1t has been expected that the com
mittee would get to the new proposal
| backed by number of its member:
for emitting the estates of soldier;
who have died since being discharged
to collect the adjusted pay due. 1t was
stated that this was not reached, anc
probably will be taken up tomorrow
/ The last three options to be carried in
the bill have not yet been taken up
They are home and farm aid, vocationa
training and land settlement.