The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-03-08
THE BONUS BILL, AS RE-
PORTED


agreed upon by the house ways and
means committee yesterday. Il con-
tnfns the loan provision which was fin
ally selected after the cash payment
plan had met with overwhelming op-
= position. Tho compromise has been re-
ported without opportunity for extern
sive discussion. However, it - interest
Ing 10 read the comment OF Senator
Carter Glass OF Virginia. Senator Class
Is a Democrat. was the creator OF the
federal reserve bark law and was sec
y-t7-y OF the treasury in the Wilson
t1hlret.
. lie says in part:
. AS it seems 20 me. the latest scheme
a., proposed Cor paying = bonus TO eN-Ser-
= Vice men is by FAR the most vicious and
r,enaring 10 the country % any that
have been suggested. CONGRESS would /
long way better have the courage TO levy
a Sa.cs IAN or any kIUd OF tax, ioT -
purpose.
The script scheme. II It should ac-
tually be put into effect would choke
Nup the avenues Of industrial and COM
mercjal credits and StcauSls tecI;;r''1ic
business from one end % the nation 10
the other.
aside from this. I, would uHCrSs''o''
violent and utterly uusound disturb
.anCe Of wholesome statutory restraints
upon unsafe banking and would prompt
~ not In effect compel, = resort 10 bank
Ing practices which experience has
shown to be utterly dangerous,
Moreover. II would produce an ln'a-
zion OF values which would not only
make II hard for ever? wage Garner ana
every person with u liked salary TO pro
vide the necessities OF Gte, but would
react against the aycrage cN-SerEice
man by costing him more than It would
,nmount to in the end.
But can the scheme. with = trc'neE'
'dous cost 20 the nation. b" Actually put
into effect VIII the banking institu.
lions o. the United States be willing 10
contribute 20 til"tr i-rcparahl" INJURY hE
CIutter.nE w their r-eGlt portfolios
with uu,iqWd insurance certificates
until the Goyerument can iooN around
after the fall election. Tor new sources
soS taxes 70 lay on the lacks OF the
American people?
, IT not that no bank will be permitted,
,
,or discount on these certificates than
will amount to more than per cent
above tho drawing rate o. the Federal
Reserve Bank OF the district in which
tho transaction occurs. In 4 greAt
many States this viii uuIl.ty the
scheme.
.'Oe course. Congress has no right TO
compel bank 70 loan the funds or It's
stockholders 20 anybody for any pur-
nose. Hence. eliminating every con-
sideraticn Of bank prudence and looking
at the mater purely from the stand
point OF acquisit,veroes. thousands OF
Ranks in states where the legal and
hbntract interest rates are far higher
fnan the rctisccuut rates OF the Fed
.efal Reserve banks. viii REUSE 10 loan
money on the iAsurar'" cer0hcatcS
Avhen, as a cold business proposition
they can loan on councr"ia! tr'InsAc'
ons at double the prescribed rae.
AS a mater OF b.S.n"ss, My Shoul0
6s~7 Bank officials are supposed tC
Transact business 20 the best advantage
~ th, Stockholders. Why, then. should
:, no expe I'd Nhac any san"ly conducted
hank Touid prA;er Ia loan money on
low or unli4n.o. securities NJ rate OF
discount far helux the legal or coRtrac'
rate ror Gg!ck and xt 7ea'"d turn overs
in curr, =, ro,urn"rc!;IN ,trtnS;I' t'"".'
.Og rcur=.. cyc~y Gv.rar loaned o;
.,hs proposed Insurance Sc7Vt VIII DC
GofIar W.,&,.,t";. from coW'"'Tc.H' an.
Industrial a,,.sItlro Ior long period
.lnst 70 the rX'"ui tHIt - bank holds
script. exactly - :hr cNtcOt,!'S ABILITY
d, loan rro~..y To- !wdus;rt;lI Cui"incrcia
and agricultural prudur',S en"sS IS cur
ta,ied. That Is elementary; Il caHnn
be questioned. .
"'rhus Il the bark >hvu'i 20 ''.''S'