New-York tribune., 1922-03-02
House Leaders Adopt Plan
All Factions Are Expect
ed to Approve; No Drain
Put on Treasury Now
Average To BE s329
For Each Veteran
Certificates 10 BE Good
for Bank Loans; Cost
Maybe S5, 500, 900, 600

Frou. 11o Tr.5nic's washington Bur.ns
WASHINGTON, March l.-Nir-
tual elimination of the cash feature
Of the soldier bonus bill and adoption
of plan for issuing adjusted scrv-
ice certticates' that would bear in
terest and have value as security for
bank loans, were agreed upon 10
day by majority members Of tie
House Ways and Means Committee
This plan is believed acceptable e
President Harding. tne Treasury, tie
war veterans and all other interests
Under this plan an adjusted scrv
ice certificate" would have d value
if held to maturity twenty ,Te2-s
about 3.3S times greater than the
cash bonus originally proposed. Tie
face value of the certificate would
be the adjusted service pay (Sl day
for service in this country and $l.25
a day for foreign duty, minus tie
$50 bonus paid at time Of discharged,
increased by 10 per cent. plus Az
per cent interest compounded an
nually for twenty years. Il is est
mated that the average facc value
Of the certificates YOU'D be 1929.
Fifty Per Gent Cash Loan Nalue
The Committee rlan calls for giving
the certificates a. Immediate losn value
of SO per cent Of the face vauc- which
would he obtainab.e at any bank a.
soon as tho certificates arc issued. II
a borrower d5faaits on such q loan It
is promo sd to give The banks TIC right
to collect from the government at the
end OF three wear d definitely ascer-
tanned amount. In all cases. it is
planDed to have the title 10 the ccrtlh
Gates remain il the veterans name
in order 10 fcrestal any loan srss,
schemes.
After three years tao committee pa
would enable the c,;-scrvice man &c
borrow on his certificates direct from
TIC United States Treasury In from
three to five years the amount of lea
obtainable would be not more than 81
per cent OF the amount of adjus.e
scry &c pay. plu. interest # mad,
after the elapsc o. FIVE years, The
amount Of the loan could not exceed
30 per cert Of the adjusted service pay
increased By 10 pcr cent plus interest
No Opposition Expected
Tie intention OF the commi,teemca
is to make the certificate plan more &c
sirable than cash bonus could pos
sibly be- The fact that the projected
plan contemplates 10 drain Nhatevt"
on the Treasury for three years af1fi
passage is expected to rout all oI
ton. Secretary Of the Treasury
Ion viii be called By the comm ttee
q few day to indicat. the Treas
attitude toward the proposal.
The certificate plan rs on
would be the backbone Of The
bill, but the other options OF the
na bill, EDUCATIONAL training
farm or home sid and land
ment aid, are 10 remain as at pr
The outline of the c1:nmittcc
plan. TO which was given the appro
every Republican mcmber, va
over to a b-committee. headcD
Chairman Fordnev. with instru
TO draft the new bill.
The new plan was aGvaaced arc
found unanimous favor, il Wa learned,
after the full Republican membership
o. nc Way and Means Committee hac
forr ally rejected the proposed general
Il f., tax By vote Of TO (
Year Before Amy Loan
Major Muason. OF the Adiutant Gen
ERALS ofrce, told the committee to-day
that i would take about eight months
after passage Of the bill before the
issuance &C the certificates could begin.
He estimated that approximately $4,000
a week could be sent out and ira :.
would take approximately six 1tts
before al had been issued TNiA
would mean, it was pointed out s'
about one year would eiapse afts laf
sage Of the bill before any nan@ ~oVle
be called upon to make loan.
The sub committee in charge .. the
new bonus bill wen. At its job for sev-
eral hours this afternoon. Its mem
bers, Representatives Fordney, Green.
Longworth, Hawley. Treadway and
Copey, feel that the new plan WI rot
cost more than the original one, ever
though the total involved at the close
OI Inc lWtHLs ScI peiioi 'htSb
larger than might be required If the
cash option were retained. a ,srgc
fraction of the certificates, it is con
tended, will nor be held until maturity
and when turned in on loans the in
terest tina. would otherwise be accru~
ing Viii go back 10 the Treasury, d-
minis ming the total considerably.
Five and a Half Billion Full Cost
The total cost Of the bonus bill at
the end Of twenty years, should every
man take the adjusted service cert:n-
Gates and retain them until maturity,
would be, it is estimated, about $5,5oa,-
C00,000.
''The committee is working on
plan contemplating entire abolition oil
the cash feature of the bill said Rep
resentatiye Longworth tonight. The
rlan would remove all drain upon the
Treasury for three years, and there
fore meets thv poiut which has been
stressed by the sident-the placing
of Il heavy burden upon the Treasury
in the next one or two years.
"The service men in the House, be-
ba Iocir;o, 70 ~ss.