The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-01-25
Five-Way Amended Compensa-
tion Plan Offered as an
Amendment to the Pend
ing Measure.

WASHINGTON, Jan. 24.-The question
of bonus for former service men again
was formally presented to the senate to-
day through the introduction by Senator
Simmons, democrat, North Carolina, OF
the five-way adjusted compensation plan
as an amendment to the pending meas
ure for refunding the war time loans to
the allied powers.
With the exception of provisions for the
payment of the bonus, the Simmons
amendment is Identical with the bonus
bill which was taken up by the senate
last summer only to be recommitted to
the finance committee after President
Harding had addressed the senate on the
subject, The provisions for payment of
the bonus call for the issuance of short
term treasury certificates until interests
on the debt can be collected to retire
them and, later, the use of the principal
of the debt, if and when such becomes
available, through the issuance and sale
of the foreign bonds.
In Offering the amendment, Mr.. Sim
mons assured the senate that he was "in
earnest" and declared that he was
bringing the subject up because former
service men deserved the bonus and be-
cause the finance committee, of which he
is the ranking democrat member, had
given serious consideration to attaching
it ito the funding bill before the latter
was reported to the senate.
1t was said that as result of an in
formal conference among democrats, Mr..
Simmons had been assured that his COL
leagues would support his efforts to have
the amendment attached to the funding
measure.
Senator Walsh, democrat. nIassachu-
setts, also submitted an amendment to
I~s
resulting from negotiations between the
proposed commission for funding the debt
and the foreign representatives should
not be binding on the American govern
ment until the consent of the senate had
been obtained. Such provisions previous
ly We're pressed before the finance COM
mittee but were not accepted. it was
said, because of objections of the treas
ury.
Mr.. Simmons in the course of his
speech declared that when the senate
committee agreed to strike out the pro-
vision for a fiat 5 per cent interest rate,
it had lelG the way open for 'the interna-
tional spectators to gather the fruit"
The republican majority on the commit
tee in his opinion. he added, had in
mind a reduction Of the interest rates to
be demanded of the foreign governments
in the future.
Senator Watson, republican, Indiana,
to say that he as a majority
member had felt that the fiat rate pro-
vision was unnecessary inasmuch as
your party" addressing MIR. Simmons,
when in power wrote into the liberty
loan acts the provisions which have gov
erned interest rates on the loans up to
this time" He declared that the pro-
visions requiring a rate from the foreign
government approximately equal to that
paid by the United States on its own
bonds was the only rational way to
dispose of the question.
LAS for the contemplated reduction"
Mr.. Watson continued, 81 have always
had such views both as to the interest on
our own bonds and on those of the for
eign governments, but l do know that
they are shared by any one. Why should
our government pay 5 per cent, if in Is
years it should decide to fund its bonds
and could borrow all the money it needs
at per cent? Where would this gov
ernment be if the 5 per cent rate were
in the law and we reduced our own rate
when this government is morally bound
TO ask no more of the foreign govern
ments than it pays in its own borrow
ings pes