Evening journal., 1922-05-10
BANKERS ARE
AGAINST BONUS
Say Banks of Nation Would
Have to Shoulder the
Burden
McADAMS TALKS
TO NATIONAL BODY

WHITE SULPHUR SPRINGS. W.
Va, May 10 Omitted Press) The
attitude Of the bankers Of the Unit
ed States toward the soldiers bonus
was stressed today in the address OF
Presideng Thomas 3. McAdams. OF
Richmond, Va. in his annual report
TO the American Bankers Associa-
tion.
McAdams Is vice-president OF the
Merchants National Bank of Rich
mond and the report was presented
before the executive council OF the
organization. Regarding the bonus
legislation, McAdams said:
THE Associations stand in oppo-
sition to the soldier bonus has
evoked much favorable comment
from the press and business inter-
ests of the country. As was 10 be
expected. however. Il met with SER
ious opposition from some mem
bers Of the Legion and scattered
bankers and individuals throughout
the country. These protests, as
rule, were based upon the feeling
that the men who served had lost
an opportunity to make as much
and should be compensated for the
financial loss.
IF this argument be sound. no
one has as yet suggested any plan
by which this discrepancy could ac-
tually be adjusted or intimated the
amount in dollars and cents which
such settlement would necessitate.
The average soldier is under the
impression the premiums paid for
War Risk Insurance covered the
cost of the operation Of this De-
partment and the only liability In
connection Herewith was assumed
and met by the soldiers themselves,
without any participation by the
American public at large.
while II is true the soldiers were
called upon and did pay a monthly I
premium for this purpose, yet this
premium was a minimum one and
did not take into account the un-
usual hazards Of war. which portion
of the liability was definitely as
sumed by the American people.
"The facts speak for themselves I
The latest figures available show
that the government has received ,
S4OO .OOO.O in premiums and as
sume definite liabilities under term
policies for losses and otherwise ag-
gregating $1,000. 900, 900. resulting
I'm a deficit Of 100000. 900. which
has therefor become a deficit, though
cheerfully assumed. debt OF the
American people. to be met and paid
by taxation.
This fact Is mentioned simply for
the purpose Of showing the Ameri-
can people have not been altogether
unappreciative Of the service rem
dered by the armed forces OF the
country 10 their nation.
"The bill which has passed the
house. is OF direct interest to the
bankers Of the country in that Il
places upon the banks the burden Of
financing such cash advances as may
be received by the individual sol
der. While the banks are not OBJ
ffgated 10 discount a soldiers note,
vet failure to do so will unquestion-
ably subject the individual institu-
tion to a charge Of being unwilling
70 co-operate with the government
and the Soldier. On the other hand
If these advances be made. many Of
them will have TO be carried as past
due for a period Of three years. when
the government agrees to reimburse
the banks for advances made, un-
der certain conditions imposed by
the bill.
The comptroller OF the currency
has. with propriety. sounded a warn
ing against this method of financing.
which. II generally acceded TO by the
banks will result in tieing up hun
ireds Of millions of dollars which
will be needed. especially in the small
in the usual channels
)f trade.
The legislation is also particu-
arly Objectionable. in that 1t Is an
1ther evidence of the power OF an
organized minority TO influence leg
station in this country which may