The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-03-10
BY DAVID LAWRENCE.

- by DAVID LAWRENCE.
Especial Despatch TO The Reformel J.
Copyright 1922.
WASHINGTON, March 10.-Fiye
hundred million dollars will be frozen
in the banks of the United States if the
soldier bonus bill being considered by
the house of representatives should be-
come a law. Also it may mean a hct
cost to the. government lin three years
of about billion dollars
This is the view OF the treasury de-
partmcnt which continues urabatcd iiS
opposition. 70 the method prescribed ny
the house to provide funds for Il soldier
bonus. The treasury view is that If
the bonus must be passed the funds
had better be obtained by direct bor-
rowing on the part of the United states
though that form is hardly as good as
sales tax, or any of the other forms
of taxation suggested.
Indeed, the treasury looks unon--the
scheme to compel the banks of tie
United States to loan money on the 90
called service certificates az the worst
possible plan that has been devised to
handle the situation.
The pasition of the treasury will an
questionably be made clear tn the house
ways and means comfaittee, though 10
| be sure. there is reason 20 believe Sec
rotary Mellon communicated his views
to the President and. that Mr.. Harding
as a consequence issued his statement 0f
Tuesday. reiterating his proposal that
/ the whole bonus issue be postponed or
! a sales tax imposed
| Will Embarrass Banks,
| Officials at the treasury explain their
IopnoSition to the house plan this way :
| They say that the so-called loan certi-
Ifeates will embarrasS the banks OF the
Icountry for it c0mpels them "a len.
lmoney to the soldiers and yet the certih-
Gates are not transferable or nego'
table For the money the banks pay
the soldiers. the sums they borrowed, the
certificates must remain in the banks tor
three years Upwards of S'QONuD.OUu
If capital which might otherwise go in,o
| business investments or be used 10
/ finance the Country's normal need would
be- withdrawn. And if mt the cad IF
three years, the soldiers wbc have bcr-
Irowed the money should default tie
| government must not only mako good
| the banks loss but il must pay the sci
| diers the remainder of the money they
were privileged 10 borrow under the sol
dier certificates.
Iof the avenue. the plan means n
| transfer of the drain for the mohicni
| from the treasury to The banks of The
/ country As between the two. it = con
4 tended that the treasury is bettcr able
to stand such borrowing than a"e the
/ banks In the end the treasury cOnsid
II crs the government VIII have To Geim
Il burse the banks. so it amounts a. thu
4 same thing, though for three years tho
q capital of American banks would hi
II tied up. or frozen"
Advised Not to Lend
i Comptroller of the Currency CrisSin
ger. who by law is entrusted With the
\ supervision of national hanks and who
Il halls from Marion, O.. where for years
he was President Harding's intimate
Il friend. insists that the scheme IS -
unsound that he would not advise banks
to lend money on the certificates which
i congress is talking about.
II Unless some better way Is devised 10
nay the soldiers bonus it Is deemed
II For the consensus of opinion IN eXecu
II tive quarters is that the latest plan Is
4 filled with more danger to tt" country
II finances than any vet proposed AMI that
the soldiers themselves viii Insist upor
a sales tax when they find oat that
painful as it may be. tho sales tax af'
fordS the Soundest scheme of financing
the bonus. The farm bloc ana other
elements in congress. however. apn0se tho
sales tax. For the moment, Il looks rs
lif the postponement of the issue BIZ let
ting it rest in the senate = inevitable