The Republican. [volume] (Oakland, Md.) 1877-current, 1922-04-13
ERROR IN BONUS MAY
MVALIDATE LOAN
First Bonds to Be Dated Three
Months Before Act is Voted
on by Maryland.

u uCltOJ WHICH may ltdu " IllC
throwing out of the 100000 sold
iers' bonus bill passed by the General
Assembly, was discovered in the
measure by Governor Richie and
Attorney-General Alexander Arm
strong.
Although under the bin as presen-
ted to the Governor for signature, the
proposed loans to be known as the
Maryland Service Loan of 1925" it
is provided that the first series of
bonds shall be dated August, 1922.
The question of adoption or reject
ion of the bond issue-or, in other
words, adoption or rejection of the
bonus law-will not be decided under
the bill until November, 1929, or three
months after the date set in the bill
for issuing the first series of bonds.
When this was discovered by the
Governor and Attorney-General dur.
ing their examination Monday of all
bills passed by the Assembly, it was
suggested that, as there would be no
law until November, 1922-or until
the people had voted-there conse-
quently could be no bonds issued
legally. In the informal discussion of
this question between the Governor
and the Attorney General it also
was suggested that banks and bond
ing houses would refuse to purchase
the bonds, in fear that they had been
Illegally issued and could not, under
the law, be redeemed by the State
The other series provided to make
up the 100000 estimated as neces-
sary to carry out the provisions of
the bonus act, hinged, to a large ex-
tent, on the date of the first series
and, in order to change that date, the
date for each Of the other groups Of
the bonds also would have to be
changed.
Another effect which. it is believed
probable, the August, 1922, date for
the first series Of bonds viii have, is
that the law does not provide for the
redemption of this series until Jan
uary, 1888. This would make the
life Of the bonds, before redemption,
- years and five months.
The State Constitution expressly
forbids the State government to bond
itself for any period longer than Is
years.
Neither the Governor nor the
Attorney-General has gone into the
question thoroughly, but both ex-
pect to give it considerable study
before the Governor decides between
signing the measure and vetoing it.
Even if, in the opinion of the Gov
ernor and the Attorney General the
wording Of the bill would make the
bonds illegal, the Governor still may
sign the measure so as to get a court
decision on the question rather than
only a legal opinion.
Herbert L. Grymes, who took the
bonus bill to Annapolis and led the
American Legion's fight to put it
through the Legislature, declared last
night that the mention of August.
1922, as the first date for the first
series of bonds was typographical
error. 1t was meant to make the date
August, 1928, declared Mr.. Grymes.
He said he did not believe the err
ror would affect the operation of the
whole bill. 81 am not a banker and
therefore do not know what would
prevent banks from buying bonds"
said Mr.. Grymes, "but feel that it is
possible to date the bonds as of Au-
gust, 1922, if the voters ratify the
bill in November, the bonds, of
course not to be offered for sale until
after ratification. Or | feel that it
would be possible to skip the first
series called for under the law and
let the next Legislature make up that
deficiency in the proposed 100000
issue. l do not feel that the typo
graphical error should be allowed, or
will be allowed, to invalidate the
whole bill"