The Washington herald., 1922-03-17
Declares Cash Outlay in
Future Will Be
Small.
DEFENDS PLAN,
BEFORE HOUSE
Takes Issue With Mellon
On Effect of Proposed
Legislation.

lDe secretary OF the Treasury. Rep
resentative Fordncy. chairman OF
The House Ways and Means Com
mittee. in report filed on behalf
Of the committee with the House
Yesterday in support OF the soldiers
bonus bill declares that the cash
outlay in the immediate future will
be small and that no additional
taxes are necessary
Mr.. Fordney summarizes advan-
tages Of the plan as follows:
First. no new taxation or is
suaHCc Of new Securities is at pres
ent required.
Second. it provides for the vet
eTan in need a method Of obtaining
aid
Amounts Are small.
Third. the amounts required cacn
yeE after July /. 1928, are small
compared to those which have here
tof6Ec been met and can be pro-
vided without any difficulties or de-
ranGement Of our financial situa-
ton.
Fourth. tn" plan tends To pro-
mote saving habit among the
veterans
Fifth. it protects the veteran
himself and his family from mis-
fortune IN the future.
Ut will create q class Of house
buthlers VIII" will greatly in
crease the mass Of property in the
coiptry"
Estimates presented by Mr. Ford
neg give the maximum cost for tho
hsasl year 1928 as s74.279 O00 and
n p-yF 70 Il ,
wears 1923. 1924. 1925 and 1926. as
si36-9l 1000. Secretary nf the Treas
ury Mel N has estimated the cost
for the fiscal year 1923 as $3.50.
5000 and for the first four fiscal
wears at moro than $1,000, 900 600.
Based On Estimates.
Both estimates were based on -
pea cent Of the former service mon
choosing the adjusted service certi-
hcates but somewhat different per-
ce1taEes were figured as selecting
the oAher three options
cir fordncy does not allow as
mich as Secretary Mellon for de-
faHlts on loans obtained by the
veterans from banks. which the
government would have to make
good at the end OF three years
The total cost Of the bonus over
fwenty-yeaT period. according 10
the FOrdney estimate. would be 81
O9S7l9,G5O. which IS considerably
more than figured in the Mellon
estimate, Mr. Fordney believing
that greater number Of veterans
would keep their certificates Tor
the entire period Of years. in order
tosreCeive the full benefit
Secretary Melons estimate Of the
cost for the twenty year period
was s2.se5.74O.OOO
Representative FOrdney indicates
in the report that while specia'
taxes might he necessary later on
there is no need Of imposing them
at the present time.
Cali Conference.
II is stated by Ways and Means
Committee chairman that the bill
at. tht present form is designed to
meet the objection relative to OK
cessive cost in the immediate flu
ture and vet will enable veterans
to. obtain money without delay.
A movement was launched during
the day by critics Of the hill for
the holding of a conference OF Re-
publican members Of the House
poked legislation. \ petition for
by Representative LIne5ergPr. OF
California. and others The pur-
pose IS to seek a special rule which
will permit a vote on sales tax
| in accordance with President Hai d
ing's recommendations. The RepUb-
1iChn House leaders who are SUP
pOtting the bill as reported from
the Ways and Means Committee
haNe regarded conference Of
'I1gSc Republicans as unnecessary
atithis time. The Linehcrger peti-
ton was signed by more than fifty
mSnbers the number necessary ~
insure q conference
q Defends Measure.
fhe report as presented to the
House by Representative Fordney
cOaIafn< an elaborate defense Of
the bill
On the cash feature the report
rYour committee. oOGnizant of
the objections raised to these pro-
pCsaIs. decided after careful consid-
erfriOn to eliminate these objec-
tons by limiting such payments To-
men entitled to receive $50 or less"
4 is claimed by Mr.. Fordney that
the amount borrowed ny veterans
frusn banks will not be as great as
feared by some
!. small Amounts,
The majority Of the Committrc
Is hf the opinion that the amount
borrowed on these certificates Will
be Comparatively small" says Mr.
Fotdney Although they Consti-
tutk ideal securities for the savings
banks. any bank may. If it sees fit.
inquire into the necessity Of MAX
ing the loan before il is made and
il is believed a majority of the
soldiers will not. in any event. ask
forla loan upon the certificates I'm
less' they have some special need
for the money"
The committee assumes that not
mote than 81 per cent will make
appIicatiOn for loans during the
whble period: in other words that
not more thai S275.OOo.000 will be
borrowed from the banks and that
this. sum is much more than will
be out at any one time. The total
amount of the assets Of the ma
tioAal banks is approximately sl9,-
100000, 900. The assets Of the other
banks are larger. making a total
r OF about $4,000. 600 900. The percent
agasof money which will be drawn
our of the banks by this plan is
therefore very slight compared to
the total amount OF the assets of
the banks-in fact less than seven
tenths of one per cent.