The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-01-05
DISABLED FIGHTER
FAILS ON BONUS

twenty-year endowment insurance
certificates in lieu Of a bonus, based
on $3.50 a day for foreign service
and 81 a day for domestic service,
the total face values Of the certif-
Gates with per cent interest fall
! ing due in 1916. 1t was intended by
the Government that those desiring
to borrow proportionate amounts of
the certificates might do so after
Jan. /, 1927. The average amount
that may be borrowed is approx
mately 800 each, at the present
time.
Government Falls Down
Bankers are refusing loans be-
cause repayment to them by the
Government in the event theveteran
| does not redeem his note at the eX-
piration of ninety days. is too indeh-
nitely stated in the act providing
for certificates. The act provides
| that in such cases of non-redemption
the bank may present the certificate
and note to the director of the vet
Grams bureau at Washington, who
may, in his discretion, accept the
| full certificate, deducting the
amount Of the loan plus per cent
interest per annum for ninety days
| from the face value of the certificate,
repayir the bank, and holding the
certificate for the veteran until ma
turity. That the director must take
up the loan is not stipulated. Loans
cannot be granted for more than
ninety days.
THE investment on the part of
our bank is not good" declared
Gordon Tucker, head of the Cont
mental National Bank loan depart
ment.
IF the Veterans Bureau does not
take up the loan, then the bank
must wait eighteen years until the
certificate natures. Such an in
vestment, for only so cents interest
on 500, is no good.
I'VE are also handicapped be-
cause enough Of the particular blank
note forms required and furnished
by the Government have not been
received. In any event, until the
GONeIIllIlCIl SltIto al NCAlllAbC &C.
payment of the loans, we are not
handling them at ALL"
Own Customers Only
Wilbur &. Shook, head of the loan
department of the Fletcher Savings
and Trust Company, said they were
| taking care of their own customers
only, and that the forms which the
Government furnished have been
exhausted.
I'VE are holding up loans to our
customers until new forms arrive"
II. E. Sutherlin, vice president of the
Fletcher American National Bank
said.
Nothing doing-it's too compli-
Gated and unsafe" declared j. M.
Mendenhall of the loan department
Of the Merchants National Bank.
Three hundred men applied here
Monday for loans on their GER
tificates. We are refusing all Of them
until the government straightens
out the terms of such loans"
Security Insufficient
The security presented Is not
sufficient" said L. G.. Burck Of the
Indiana National Bank. Suppose a
man dies away from here in years to
come, to whom we made such a loan
and we are required to furnish
the Government with notice within
fifteen days of his death. We don't
know Of the situation, and, accord
ingly, lose our investment"
"Ninety-f1ve per cent of the vet
Grams trying to cash in on their
certificates do not intend to redeem
Them" said j. J. Kiser Of the Meyer
Kiser Bank. "If the Government
will definitely assure us that the loan
will be protected, then we will en-
large our loan policy in this case to
include others than our own GUS
toners. Until then we will do moth.
ing"
|