Show LOAN BILL DILL WOULD MD ft I 0 INSURED INS U RED Holders of Vets Policies Would YO Profit On Interest Interest I WASHINGTON r Feb 8 D The Tho Associated press press-A Press A- A hail Ial million former service m men n who hold government life Insurance insurance policies stand to benefit by fina loan passage of or the tho Green bonus bill although I Its primary purpose Is to facilitate fl borrowing on al- al ad adjusted compensation certificates Under the tho bill Interest proms profit made on the compensation certifIcate certificate cate loans s would co go to a fund setup up to retire the tho governments government's lira lift Insurance policies which it Is in- in intended intended In Intended with low low- lower lower lower tended will bo reflected er Insurance premiums through dividend declarations L The Tho Green bill authorizes the veterans bureau u to make maico loans on bonus certificates at 2 Z per par cent In- In In Interest terest In exee excess of the current fed eral reserve discount rate which means that tho the normal rate rato to tol l loan an seekers would bo ho approximately 6 per pcr cent ceat In order to make mako loans the Iho treasury treasury would advance 25 21 25 to tho the te ans bureau the bureau rIVing as se security an equal amount of ot bonds bond It holds to redeem policies converted from Var risk policies The Tho treasury would bo be authorized to charge chargo the veterans bureau 4 per cent In- In interest Interest In Interest terest WOULD MAKE E PROFIT Inasmuch as the bureau would receive 6 f per cent on loans and ond pay only 4 per cent to the tho treas treas- treasury treasury treasury ury a 2 per cent profit would accrue ac- ac ac accrue crue which would be turned Into the tho government lifo life insurance fund The Tho i securities held beld in the fund are to retire policies at at death or at term of ot expiration Whatever profit Is made by them at present present pres- pres ent It is 46 G per cent reflects In lower premiums to policy holders by virtue of dividend declarations Tho The greatest benefits would re- re result result re result sult to policy polley holders In the tho event certificate loans were not repaid John Thomas Taylor Talor ot of o the tho Amer Amer- AmerIcan American ican legion estimates that 1000 1000 too service men will not repay their loans permitting them to re- re remain remain re remain main as compound Interest bearing obligations against their certificates certificates certificates cates the face faco value of ot the tho loan plus 18 years cars compound interest to be bo deducted a maturity of ot the tho certificates Taylor Talor gave gate his views In a state stale statement statement ment to o the tho ways and means com com- committee committee committee made public today lie said Should men fall to repay their certificate loan And the compound Interest rate bo be set at 6 per cent It would mean an Increased earning to the govern govern- government government ment of which would bo be paid out ot of tho the pockets of ot the themen Igen least able able- able ablo to afford d It that It thatIs Is the mn men whose hoso poverty or ne- ne necessity ne necessity has caused them to borrow on their adjusted service certificates certificates cates eates TAX T ON 0 POVERTY The World war vet vet- veterans veterans vet veterans erans who ho have hll government life lite policies are aro perhaps the most prosperous class out of ot the tho veterans entitled to ad- ad adjusted adjusted ad adjusted compensation It would bo be manifestly unfair to o charge an extra 2 per cent on the he loans of ot the tho more unfortunate class lass and donate this sum to the themore moro noro prosperous the prosperous the holders or of States government lIfo life in- in In Insurance policies Although It desired a lower In In tort n nd r tc r tp the le legion lon I H not op- op bill and li IS ex- ex i ex-i 1 oJ d to the Green Grcen I et e d to support It when it comes shortly i i i-i i the senate shortly |