Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-03-03
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Plan Under Which Bonuses Will Have
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Elimination Of the cash feature of
the soldiers bonus bill, but under "a
plan which would enable former ser
vice men to obtain funds from banks
on adjusted service certificates imme-
diately after they were issued is under
consideration by majority members Of
the house ways and means committee
as q possible solution Of the bonus
problem.
This would make unnecessary any
heavy draft on the federal treasury
during the next two years, while the
refunding of the $500, 100000, short
dated debt is in progress and, 1t was
said, would remove the fundamental
cause of the differences in congress
and between the administration and
congress over the bonus question.
The task of working out the plan was
assigned Wednesday too special sub
committee which was appointed by
what was described as unanimous
consent" after the majority members
had failed to agree on any method OF
financing the cash payment.
Committee members said it was not
proposed to change the vocational bill.
Some of them thought, however, that
the certificate feature would be so at
tractive that a great majority Of the
men would elect that option OF the Dill.
Under the plan now contemplated the
face value of the adjusted service GER
tificate would be equal to the sum or
the adjusted service pay Of the veteran
($1 q day for domestic service and $1.25
a day for foreign service less the $6O
bonus paid at the time of discharge)
increased by 40 per cent, plus interest
thereon for 20 years at the rate or IL
per cent a year, compounded annually.
The total face value thus would be ap-
proximately 3.3S times the amount OF
cash the veteran would have received
under the cash feature.
Immediately after the certificate was
received the service man could obtain
from bank an amount equal to so per
cent of the total of the adjusted SER
vice pay. If at the expiration Of three
years the sum thus obtained plus in
terest had not been paid by the service
man the bank could make demand on
the federal treasury for the amount
due. The government thus would take
over and carry the loan.
Provisions respecting loans to be
made by the government on the GER
tifcates after three years from their
issue would be retained in the bill, II
was said Under these provisions, II
the loan were made within three to hVe
years after issue the amount could not
exceed 90 per cent of the sum of the
adjusted service pay plus interest from
the date of issue or rate of IL per
cent, compounded annually. II the
loan were made after five years, the
amount could not exceed 80 per cent OF
the sum Of the adjusted service pay in
creased by 40 per cent, plus interest
from the date of issue at the rate or
1-2 per cent, compounded annually.
Representative Longworth expressed
the opinion that the suggested plan, II
it could be put in workable form, would
meet with the approval of President
Harding and also of both the house and
senate He also thought it would be
acceptable to the service men. This
view was shared by several other mem-
bers of the committee, who said the
program would enable men in immedi-
ate need to obtain a fairly large sum of
cash and at the same time retain TO
them more lasting benefits perhaps
than would have been obtained through
an all cash adjusted compensation.