The New York herald., 1922-03-08
Executive Officials Repudi-
ate Document as Impossi-
bic Of Execution.
SCHEME LACKS BASIS
Banks authorized to Lend
Money. but Not Compelled,
Because Law Forbids.
ny LOUIS sEIBoLD.

Special Dispatch to THE NEW York HERatp.
New York Herald Bureau.
Washington, d. G., March Z.
The last edition Of the legislative
raid on the national Treasury and
business Of the country to get sol
diers' bonus was surreptitiously in
troduced into the House of Repre-
sentatives this afternoon.
1t was dropped in the box" by
Chairman Fordney Of the Ways and
Means Committee and automatically
referred back to that body. Born Ia
the secret council of the Republican
members Of the Ways and Means
Committee, few members of the
House even knew it actually hsd
made its appearance.
The reception accorded to the lat
est scheme to extort $4,000, 900
from the Treasury and taxpayers was
far from cordial. Even while Mr..
Fordney was dropping his insurance
certificate loan plan into the ''biil
box" in the House lobby it was r.
pudiated out of hand by executive ~.
ficials Of the Government. leaders Of
the farm bloc, Democratic Repre-
senlatives, bankers, merchants.
farmers and industrialists through
out the country.
sam Express Confidence.
Mr. Fordney left town immediately
after unloading the bill which las
caused Congress more distress than
Some of his Republican associates said
they thought the President could DO
induced to accept our bill'' because
It is tie "bsst thing that can de done
Inquiry at the White House to-day
revealed the fact that President Har-
ding was not consulted in the prcpa-a.-
tion of the measure. The confdsrcs
expressed by Mr.. Fordney that the bin
will - passed py the House prooaoiv
is justified. but cli;ly reception cA-
tainly awaits IL in "thc aged and Vi.
firm" as Mr. Fordncy described tie
Senate
Treasury officials who looked over
the measure pointed out at least ore
serious defect. This was the omission
TO prescribe the method Of raising the
money to pay the bill. Where II Is -
come from Treasury officials do not
pretend TO know.
Appropriation In Expectancy.
The only reference made to sinarc-
ing the raid appears in the last twouty-
four Of TIE eight thousand word Gocu-
ment with which Mr.. Fordney and his
WAYS and Means associates concluded
tkeir Offering. They were:
and there Is hereby tu-
thorized TO be appropriated out ot
any moneys in the Treasury not
otherwise appropriated amounts
sufficient to defray such expsndi-
lures.
No form Of taxation. bond issue or
other Governmental processes usually
: employed in raising revenue is even
suggested: no method prescribed for
putting into the Treasury the $1,000
600 900 certain 10 be demanded by tho
bonus at the end Of three years and i
minimum OF $4,000 000.0 900 at the end
Of twenty
Treasury officials who made par
tial analysis Of the new adjusted COM
pensation act as the Ways and Means
measure is officially described. declare
the scheme for authorizing so per cent.
loans by banks and so per cent. by the
Government is not well founded. Tiler
further declare that in pra sH
sense the latest bonus Offering | n-
possible OF execution.
Not Mandatory on Bank.
The Fordney bill does not M
mandatory on banks TO advance asM
on the bonus certificates becau,
Federal Reserve law prohibits 4t
"authorizes" national and State nNa
and trust companies to advar
per cent. to veteran on his
sorry notes secured by his az VA
certificate. such loans to mature cr
before September 80. 1925. after shita
time the Secretary OF the Trca fv H
authorized" 10 advance so pc Gent
OF the face value OF the certiflci1M
Provision Is made for the mcnt
OF the face value OF the certifi te ra
September 80. 1912. the date n
turity Of Il. But the bonus bill nitro
duced to-day does not say fro what
fund or revenues the money to Del
paid.
As the certificates are not neaaiiaN'N
or transferable, Treasury officials de-
clare the banks win not care to tie up
their resources in them. In return
for cash the banks would receive se-
curity which cannot be realized upon.
The hndncial experts OF the Gov