New-York tribune., 1922-03-03
Change Will Cost Treasury
$50, 600, ,OOOin First IL
Months and No More
Until Third Year Ends
FOrdnev Will Have
Bill Ready in Week
Veterans TO he Guarded
Against Loan Sharks:
Senate Approval Likely

rom jNr Triby ~ Fosaffato 5ip,ru
WASHiNGTON, March 2.-Aft.r
virtually agreeing yesterday to chm
nate entirely any casn paymcre:
under the soldier bonus bin. tue
Ways and Means committee
drafting the new adjusted service
certificate bonus measure decided to-
day to provide for immediate cash
grants where the adjusted pay due
veteran docs not exceed $50. Tn.
was the only definite result Of a long
session devoted to considerations o.
the technical details involved in tie
new bonus plan
There IS little doub, in the minds
Of Chairman i'orduey and House
leaders that President Harding ".
give his approval to the certificate
bonus plan He has indicated Sc,
cral times that he Was inclined to
ward at least "a restriction Of tie
cash bonus, and his outstanding OBJ
jections have been to the placing Of
excessive burdens upon the Treasury
in the next two years and to lovyiNl
any new taxes with the exception o.
the general sales tax which has bee
definitely discarded by Congrcss
Both these objections arc met undei
the new plan. as arc many othe'
minor ones advanced by various
groups at the Capitol. The commit
teemeN therefore believe that the
President would accept the now plar.
Confident of Approval
The President has not indlcated even
Informally to members. since the fran
ing Of the new bonus plan : few day,
ago, precisely what is MS attitude
Those in charge OF it. however, declare
there is not the slightest question 80
their minds, in view Of previous bonus
conferences at the White House. I, :
expected that when the new bill IS
completed Mr. Fordney VIII take = t.
the White House before presenting it
TO the House
Several witnesses. including Governor
William p. G.. Harding of tic Tcdcrs'
Reserve Board and Treasury Depart
ment Actuary Joseph 5. McC oy, dis
cussed with the subcommittee tn
practical workings OF the proposec
measure The latter told them thai
payment Of cash bonuses not exceeding
$50 would entail total expenditure ci
S16.00o,00O during tr@
first year Of operation As the blll is
now being worked out, that would he
the only requirement from tho Treas
ury for the first three years followin.
its enactment
1t was declared b. Chairman Ford
ncy that in his judgment, based upo-
the reaction among members generally
on the new bonus plan, there would be
no need for a party conference on tn
measure after it was completed by the
committee and before IT WAS reported
to the House The scheme is so favor
ably regarded By an overwhelming ne
iority OF members he decla red, thar
there is row not tic slightest doubt v
viii be passed by the House without :.
hitch. Mr. Fordncy said he expected to
present the bonus bil % the House
within a week
Senate Likely to Assent
Among Senators there was a d.
position TO want TO give the plan care
full study before making commitments
OF opinions Belief IS. however. thai
if the House backs UP tho plan ma
ioritv Of the Senate VIII be disposed -
accent il as opening road out o.
most embarrassing difficulty. Espccia
ly is this likely to be the case If thcl-
10 -ac+ f-rrt
the veterans.
The Subcommittee wen, with Gov
crnor Harding into careful study o
the general financial aspects Of The
adjusted service certificates. especia-l
with regard TO the possibilities II "il
open up for the wiles os loan sharks
and other types OF shylocks. Governor
Harding advocated that the rate % II
tcrest to be paid by a veteran on loans
by regular banking institutions agains'
the certificates be 2 per cent hlgfer
than the rediscount rates in the rs-
gional Federal reserve banks.
1t was suggested to the ub-commlt
tee by Mr.. Fordney that heavy penalties
be provided in the bill for banks. VIC
lating the interest rate which may be
specified or in other ways taking ad-
vantage of veteran. The details o.
tnlS feature VIII pc Aldfi up NAtiia-s
the next few days. bat one OF tee
things that will go into this part w
be a provision requiring the title to 81
certificate to remain always IN TIE
name of the veteran. Should loa'
not be paid back 10 d bank before
October /. 1925 it is planned to give
tho bank the right to make demand for
payment upon the government
Fordney Outlines Plan
Chairman Fordncy made the follow
ing statement:
"A sub committee. consisting o.
Chairman Fordney and Messrs. Greer.
Longworth, Hawley, Trcadway and
Copley, has tentatively agreed upon
and prepared provision to be submit
ted. which in substance is as follows:
"The elimination Of the cash feature
of the bonus bill where the veterann
are entitled to more than $50 adjusted
service pay, but adding a new loan
provision to the adjusted service Gel
tit;cate title which will enable holders
of such certificates to 10, row from, arv
national bank or bank or trust com
pany incorporated under the laws IL