US Presidency
1931

To the House of Representatives: I return herewith, without my approval, H.R. 17054, An Act to increase the loan basis of adjusted service certificates. In order that it may be clearly understood, I may review that the adjusted compensation act ( bonus bill ) passed on May 19, 1924, awarded to 3,498,000 veterans approximately $ 1,365,000,000 further compensation for war service. To this sum was added 25 per cent, said to be consideration for deferring the payment until about 1945, the whole bearing 4 per cent compound interest. Immediate payment to dependents upon death was included, thus creating an endowment insurance policy represented by a certificate to each veteran showing the sum payable at the end of the period the face value. The total face value of the outstanding certificates to-day after paying the sums due of less than $ 50 and payments in full to dependents is $ 3,426,000,000 held by 3,397,000 veterans or an average of about $ 1,000 each.