Pueblo chieftain., 1922-03-02
COMMITTEE D|SFAVORS
PAYMENT CASH BONUS
Relay of Funds Thru Banks To
Service Men Now
Is Plan

WASHINGTON. D.. c.. March L.
Elimination of the cash feature of the
soldiers bonus bill. but under 4 plan
which would enable former service
men to obtain funds from banks on
adjusted service certificates immedi
atoly after thoy wcro issued. is undor
consideration by majority members OF
the house ways and means committee
as a possible solution OF tho bonus
problem. This would make unnecessary
any heavy drain on the federal treas
ury during tho next two years while
the refundin. of tho $6.500,Oo0 short
dated debt Is In progress and Il was
said. would remove the fundamental
CAUSE OF differences In congress and
between the administration and con-
Srcss over the bonus question.
Tho task OF working out tho plan
was assigned today by n special sub
&C mmittcc which was appointed by
what was described as Unanimous
consent after the majority members
had failed to agree on any method Of
financing tho cash payments which II
had been planned should be spread
over n period of two and onc-haif
years from next October /. The SUBJ
committee had Its first meeting late to-
day and 1t is understood plans to call
In Secretary Mellon and possibly mem
bcrs OF tho federal reserve board for
n discussion OF the whole proposal.
Emphasizing that the suggested plan
waa In only in tho incubation stage"
Representative, Longworth. Ohio, n
member OF the subcommittee. said II
probably would be week or moro
b. fore tho subcommittee had COM
pleted its work. Whatever program
is agreed upon must be submitted to
the other majority members for n de-
cision and 1t appeared probable that II
would be at lcust u month before what
over bill was agreed upon would be
ready for the housc.
Committee members said IT was not
proposed to change tho vocational
training. farm and homo aid and land
settlement features OF tho Fordncy
hill. Scric OF them thought. however.
that the certificate feature would bc
NO attractive that great Majority OF
tho men would elect that option OF the
bill.
Under tho plan now contemplated tho
facc value of tho adjusted service GER
tiflcate would be equal to tho sum OF
the adjusted service pay of tho veteran
sl.0p a day for domestic service and
Sl.25 "A day for foreign service less the
$50 bonus paid at, the timc OF dis
tnHrRel, increased by ~ per cent. plUs
Interest thereon, for twenty years at
the rate of four and ope-half per cent
a year, compounded annually.
Tho total face value thus would be
approximately 3.5s times the amount
OF cash that veteran would have re-
ccivcd under the cash feature.
Immediately 3ftor the certificate was
received, the service man could obtain
from n bank an amount quail to 30 per
cont Of the total of tho adjusted ser
vice pay. II at the expiration of three
years. tho sum thus obtained, plus in.
tcrcst. had not been paid by the -sr
vice man. the bank could make demand
Oh the federal treasury for the amount.
The government thus would take over
and carry the loan.
Provisions respecting loans to he
made by the government on tho GER
titlcatcs after three years from their
iysue would be retained I'm tho bill, 1t
was said. Under theso provisions, II
tho loan were made in from three 20
five years after issue. tho amount
could not exceed 10 per cent OF the ad-
justed service pay, plus interest from
the day OF issue. at rate Of Az per
cont. compounded annually. II the
tosn were made after five years the
amount could not exceed so per cent OF
tho sum of the adjusted service pay
Increased by 90 per cont, plus interest
from the date of issue. at tho rate of
~ per cent, compounded annually.