Grand Forks herald., 1922-03-02
WILL DISCUSS
new PROPOSAL
WITH MELLON
Service Certificates Would
Substitute the Cash
Feature.
May be Month Before Com
rnittee is Ready to Report
to the House.

Washington, March 2.-Agrec-
ment TO eliminate the cash fen
ture of the soldiers bonus except
in the case of men whose adjust
ed service pay would not exceed
$50, was reported today by the
special subcommittee of RepUb-
lican members of the house ways
and means committee to which
the whole bonus question was rc-
fcrrcd yesterday.
In lieu of cash for the other service
men it was agreed to add new pro-
vision to the bonus bill under which
the men accepting adjusted service
certificates could borrow Immediately
on those certificates from banks a
sum equal to SO per cent Of the total
adjusted service pay, com puted at this
rate of 81 a day for domestic service
and $1.25 day for foreign service.
Expects Approval.
Chairman Fordney said this pla8
was expected to meet with general
approval since it enabled the soldiers
who may be in need to obtain cash
Immediately after the issuance of the
certificates would relieve the treasury
enormous refunding operations which
must be carried out in the next two
years and would place no additional
tax burden upon the public.
Many details of the proposed
amendment to, the bonus bill remain
to be worked out and Mr.. Fordney
said it probably would be week be-
fore the plan was ready for submis-
sion to the entire Republican mem
bership of the committee. He declar-
ed that there would be provisions re-
Of tJ1o ~
the certificates and limiting the
amount of interest which the banks
could charge for the loans.
Washington, March .. - Majority
members of the house ways and means
committee were hopeful today that a
final solution of the soldiers bonus
problem had been found in the pro-
posed plan to substitute for the cash
Ssat.rc-' NJ athe-bsrf a provision for
!. HttusteG Service certificates upon
/; which former serSicemen couls i'm
! smediately. obtain funds from the
I banks. Formulation Of the plan al
ready had been undertaken today by
the special subcommittee to which
it was referred yesterday, and it was
; understood that it was planned to
call in Secretary Mellon and possibly
members of the federal reserve board
Aoi q uiSSuSSioH OIL the WHOle pIUpOSal.
| May Delay Month
| Representative Longworth Of Ohio,
a member OF the subcommittee to
which the majority members assigned
the task of working out the scheme
after failing to agree on any method
ior financing the cash payments, said
1t probably would be a week or more
before this could be completed, and
1t appeared it would me at least a
month before the committee would be
ready to report any bill agreed upon,
to the house.
Without changing the vocational
training. farm and home aid and the
land settlement features of the Ford
ney bill, it is contemplated under the
new plan. committee members said.
to issue adjusted service certificates
which by the addition of 40 per cent
| 10 the proposed adjusted service pay
J plus interest on the total for 20 years
at the rate of Az per cent, COM
pounded annually would have u total
face value Of approximately 3.3S times
the amount that would be received
under the cash feature. An amount
! equal to SO per cent of the total Of the
adjusted service pay could be borrow
/ ed from bank Immediately on issu-
ance Of the certificates, with the pro-
vision that if the sum thus obtained
plus interest was not repaid in three
! years the bank could make demand
| on the federal treasury for the
amount due the government thus to
, take over and carry the loan.