The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1922-03-06
SOLDIER BONUS
THIS WEEK
MAKE CHANGE In INTEREST
RATE INVOLVING SAVING OF
HALF BILLION DOLLARS.

Washington, March 6.-The work
ing out of details of the compromise
soldiers bonus bill was completed to-
day by the special subcommittee of
the house ways and means commit
tee republicans and it was announced
that the redrafted measure would be
presented to the entire committee
membership, republicans and demo-
crast, next Tuesday.
In the nature of a substitute for
the discarded cash feature there
would be added to the adjusted SER
vice certificate title, provision
which would enable the men select
ing the certificate option to obtain
Immediately from banks loan equal
to one-half of the adjusted service
pay to which they would be entitled
on the basis of one dollar day for
domestic service and $1.25 day for
overseas service.
In announcing the compromise
agreement, Chairman Fordney said
it probably would be a week before
dll ucldl1S VI JuO lOdh ploNA0Aoh SOuiN
be worked out and the original bill
amended to conform to it. He ex-
pressed the opinion that the plan
would be so well received by house
members generally that it would not
be necessary to submit the new bill
to a party conference, thus speeding
up the time of it's submission to the
house.
Chairman Fordney and other COM
mitteemen said they believed the
new plan would meet with general
favor, in and out of congress, for
three reasons, which were summar-
lied as follows, in a formal state
ment issued by Representative Green
of Iowa, ranking republican on the
committee:
Il. The needy veteran can OBJ
tain money as soon as his certificate
is issued and in greater amount than
is provided by the cash plan OF the
original bill.
"2. No large drafts to be made
on the treasury until the expiration
Oh LuTct years.
"3. No new taxes required
The perfected plan will be submit
ted to the majority membership
Monday. Chairman Fordney and
other members said they did not
think it would be necessary to pre-
sent the bill to a republican confer
ence. but added that the measure
probably would not be reported ia
the house for ten days or two weeks
so as to give members ample time In
| which to study the compromise.
One important change in the orig
inal adjusted service certificate title
was made today and members esti'
mated that this would reduce the to
tai ultimate cost of the bonus by per
haps as much as half billion dol
lars. Under this change the face va
lue of the certificates would be the
sum of the adjusted service plar
| plus 25 per cent instead of 40 pei
cent as originally proposed plus in
terest at the rate of IL per cent
year compounded annually.
The maximum interest rates
which banks could charge in makins
loans othe holders of the certificat
es was fixed at the amount OF the re
discount rate charged by the region
al federal reserve banks plus two pc
cent.
Under a new provision If a serv
ice man defaulted in payments Il
the bank and the bank made deman'
on the government at the end o
three years for the amount due tn
government instead of taking owe
and carrying the loan would cash tn
certificate at it's then value. II al
of the service men took certificate
and held them until maturity 2
years after their issue 1t was est
mated that cost of the bonus to tn
government would be approximate
$4,000, 100000. 1t was figured how
ever, that through borrowing an
forfeitures this cost would be redut
ed approximately billion dollars.