The New York herald., 1922-08-23
SENATE BONUS BILL.
LACKS FINANCE
It Is Virtually Twin Of Meas
ure Passed by House, Ex-
cept One Feature.
LAND SETTLEMENT OUT
Final Cost Of Proposed Raid
Estimated at From Five to
Seven Billions.
Special Dispatch to THE New York HEHALn.
New York Herald Burean,

Special Dispatch to THE NEW YORK HExALr.
New York Herald Burean.
Washington. ID. O., Aug. 2s.
The McCumber bonus bill. which will
be brought before the Senate tomorrow.
is legislatively known as "the vet
erans' adjusted compensation BILL" and
with the exception Of the '1and settle
ment" option feature adopted by the
House 1t is practically the same as the
bin passed through that chamber on
March 90. The land feature. which the
Treasury estimated would cost $18.000,-
000, 900 II selected by all beneficiaries OF
the bonus scheme, was greatly modified
by the Senate Finance COMMITTEES.
The purpose Of the bill, according to
Chairman McCumber is TO correct the
inequalities suffered by those who per-
formed actual soldier duties and re-
ceived meagcr soldier wage"
The bill gives an adjusted service credit
of 81 a day for each days service In the
United states and S1.25 a day for each
days service overseas or afioat. The
credit cannot exceed $626 In the case OF
overseas service and $500 in the case Of
home service.
List OF Options.
Each veteran has the right to avail
himself Of any one. but only one. OF the
following options:
/. Adjusted service pay. This plan Ia
limited to veterans whose adjusted SER
vice credit is not more than $50.
2. Adjusted service certificate.
3. Vocational training aid.
4. Farm or home aid.
8. Land settlement aid.
Under the House bill the veteran was
required to-make an application for his
chosen plan on or before July ]. 1929.
The Finance Committee struck out this
limitation and permits the veteran to
make application at any time after the
passage of the act.
The bill permits any veteran whose
adjusted service credit is not more than
$50 to receive such amount in cash. 1t
is estimated that the maximum pay
ments under this plan will not exceed
s1e,000,00O.
1t Is estimated that S5 per cent. OF the
veterans would select the adjusted SER
vice certificate option. That plan per-
mits the veterans to receive a paid up
insurance policy payable at the end of
twenty years. The House bill provides
hat all of the certificates shall be dated
October 1. 1922. The Finance Committee
recommends that this provision be
changed to January /. 1923.
Certificates Face Value.
II the veteran chooses the insurance
plan the face value of his certificate
will be 20 per cent. greater than his ad.
Justed service credit together with in
terest thereon, at 4 Y per cent. per an
mum compounded annually for twenty
years. In the event of the veterans
death prior to the maturity of the GER
tificate his beneficiary or estate will re-
ceive the full value of the certificate.
The loan basis OF certificates is de-
fined to be the amount of the adjusted
service credit plus interest thereon from
the date of the certificate to the date
or making the loan at a rate of ~ per
cent. per annum compounded annually.
The rate OF interest that can be charged
uron sucn loans by bank cannot ex-
ceed by moro than per cent. per
annum the rate charged at the date of
the loan for the discount OF commercial
paper by the Federal Reserve Bank for
tho Federal Reserve district in which the
bank Is located.
After three years and UP TO six years
after the date of the certificates the
Government is authorized to loan To the
veteran on his certificate S5 per cent.
OF the adjusted service credit plus the
interest compounded annually at Az per
cent. After six years the Government
~ authorized to make loans not to ex-
coed 10 per cent. of the adjusted service
certificate plus the interest
No provision is made In the bill for
financing It, The estimated cost of
carrying out the provisions of the hill.
according to the Finance Committee. is
S3,S45,659.4S1. Senator Borah savs /,
will approach $4,000, Ooo, 900, while Sena-
tor Underwood figures the cost will be
near s7.000,00o.0 900.