Evening star., 1935-04-17
1,300,0 900, 900 Estimated
Cost of Settlement by
Means of 3 Per Cent Ne
gotiabIe U. S. Obligations.
ENACTMENT OF PENSION
LEGISLATION is BARRED
Bill Provides for Punishment for
Transfer of Securities of Less
Than Face Value Within Pc
riod of Six Months After Their
Issuance to Veteran.
BY G. GOULD LINCOLN.

A compromise" soldiers bonus bill,
estimated to cost S1,30o,0o0,000, was
introduced in the Senate today by
Senator Harrison, Democrat, Of Mis-
sissippi, chairman of the Finance
Committee.
Senator Harrison is confident the
President will not veto the measure
if it is passed.
The bill provides for exchange Of
World War veterans adjusted service
certificates for 3 per cent, negotiable
Government bonds.
1t declares, "in view of the generous
benefits" accorded the veterans of the
World War by the Government, that
it is the policy of Congress that
there should not be any general PEN
sion laws enacted for the veterans Of
the World War or their dependents"
Based on Military Service.
The Government bonds which the
Government will issue in exchange
for the adjusted service certificates
the bonus certificateS-will be based
on the military service of the veteran,
at 81 a day for service in this coun-
try and at $l.25 day for service
abroad, and shall include interest at
4 per cent. compounded annually.
from November II, 1918. II the vet
&,,- ;,. hi -
the interest will be compounded up
to that time. Otherwise the interest
will be compounded to January /,
1945, the date on which the adjusted
service certificates are now due and
payable.
Indebtedness of the veteran, due
to loans and interest thereon accrued
to the date of settlement, will be
deducted from the face value of the
bonds issued to take place of the bonus
certificates.
The bill is designed to place in
the hands of the veterans, or as many
of them as may desires negotiable
Government bonds which they may
turn into cash.
BY dating the compound interest
back to November IL. 1918, the vet
Grams will lose little of the face value
of their present bonus certificates. The
bonus certificates are based on their
adjusted service credit and interest
compounded at 4 per cent from the
dates of issue. None of them was
issued prior to January l, 1925.
Sale Price Limit Fixed.
The Government bonds issued to
the veterans for their bonus certi-
ficates are to be redeemable in law
full money of the United States at
date to be fixed by the Secretary
of the Treasury
In order to protect the veterans,
the bill provides that for a period Of
six months after a bond has been
issued to veteran any one who buys
or loans money on the bond for a
less amount than the amount shown
on the face of the bond shall be
guilty of fraud and shall be punished
by fine of not more than $4,000 or
imprisonment for not more than two
years.
Senator Harrison issued the follow
ing statement in explanation of his
bill:
THE bill seeks to amend the World
War Adjusted Compensation Act of
May 19, 1924, so as to permit veterans
who so desire to surrender their Ger
tiflcates and in lieu thereof receive
negotiable bonds. The rate of interest
which the bonds will pay is per
cent, and as Government obligations
bearing this rate are now selling at
a premium and are greatly in demand,
such veterans as may desire to con-
vert these securities into cash will
find ready market for them. So as
to protect the veterans against being
defrauded by INSCRIPTIONS persons
attempting to gain possession of the
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