The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-06-09
SOLDIER BONUS BILL
is GIVEN TO SENATE;
BLOCKADE is FAILURE

last night in the senate by Chairman
McCumber, of the finance committee
with an accompanying report placing
the probable cost to the federal gov
eminent at $3.S45, 659, 4S1 spread over
period of 43 years from next jan
uary. This is approximately $780,
100000 less than the estimate under
the house bill, which was $4,09S,71
$50, payable over 20 years.
The bill was presented after a first
effort by McCumber to report it at
the opening of the session had been
blocked by Senator Pat Williams, of
Mississippi, Democrat.
The senate bill estimate was pre-
pared by treasury experts and is based
o nthe theory that IS per cent Of the
4,4S8, 199 veterans, who would be eli
gible for compensation would elect
the adjusted service certificate option;
22h per cent, farm, home and land
settlement aid and 21a per cent vo-
cational training. Should all the vet
Grams select the certificate plan, the
total cost would be s4,485,545,975.
With reference to financing this leg
.slation, Chairman McCumber's report
said 1t was hoped that the reduction
in governmental expenditures plus the
payment of interest on the refunded
foreign obligations would be sufficient
to obviate the imposition of additional
taxation
IF it does become necessary to i'm
pose additional taxes" the report con-
tinued "it is believed we can better
determine the amount of the necessary
levy and the methods of distributing
such burdens for the future at later
date when the future condition OF the
treasury will be more accurately es-
tablished."
". Hope For Payment
AS to the refunded foreign obliga-
tons, the hope was expressed that
these soon would be obtained and
that II will be possible for the foreign
governments to provide for the imme-
date payment of interest thereon, so
that such interest can be used toward
defraying the expenses authorized I'M
der this act.
Senator McCumber explained that an
attempt had been made to reduce to
minimum cash payment under the
bill during the next three years, while
the treasury is engaged in refunding
the nearly seven billions of dollars or
maturing government obligations. The
estimated cost of the bonus for those
three years was $242, 100000.
After its presentation to the senate
the bonus bill went to the calendar,
where ii will remain until there is an
agreement to call it up. Senator Nc
Cumber and some other proponents
desire early action, but several Repub-
lican leaders are opposed to sidetrack-
ing the tariff bill, as they expect the
fight over the bonus to consume at
least a month and perhaps six weeks.
Measure Changed
The measure differs somewhat from
the house bonus bill that was reported
to the senate last year and later sent
back to the finance committee at the
request of President Harding. The
most important change from the orig
inal measure is the elimination of the
cash bonus and reclamation features.
AS now drafted, the legislation would
give each veteran the right to select
any one of the following plans:
Adjusted service pay, but only If his
adjusted service credit did, not ex-
coed $50
Adjusted service certificate with
bank and government provisions.
4 Vocational training aid.
Farm and home aid.
Land settlement aid.
The estimated cost for each of these
plans Is S1O,UOUtuUV lot the Cash pay
ments; S3,364 900, 461 for the adjusted
service certificates; SAP, 426,0O0 for
farm home and land settlement aid
and So, 1926, 900 for vocational training
The expenses under vocational train
ing and the cash bonus would end in
1926, under this estimate, and those
for farm. home and land settlement
aid in 1929. Expenses under the Ger
tificate plan would continue to 1866
with a total of $685., 991 $40 to 1913
when the certificates would begin to
fall due.
Explains Bill
Explaining the bill Chairman Nc
Cumber said in his report that the
amount of the adjusted service credit
would be at the rate of 81 a day fol
domestic service and $1.25 for foreign
service. less the $50 bonus paid when
the veterans were discharged from the
service. In no event, however, could
the total exceed $500 in the case Of
those who had only domestic service
and $6z5 for those who had both do
nestle and fareign service.
The adjusted service certificates
payable at the end of twenty years
from the date of issue or sooner upon
death would have a face value of 3.1s
times the total amount Vi lne duJuoISN
service credit. Until January l, 1926
banks would be authorized to loan L
the veterans an amount equal to 90
per cent of the adjusted service credit
plus interest at the rate of Az pei
A cent compounded annually, from the
date of the certificate. After Jan. !
1926, the government would make
loans on the certificates in vary
inc amounts according to the time
negotiated
Reclamation Eliminated
Chairman McCumber said in his re
port that the committee had recon
mended elimination of the reclamation
provision of the house bill for thret
reasons:
Any reclamation scheme will be eX
ceedingly expensive and will in tn
end necessitate the expenditure o
millions of dollars; it will be man.