Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-12

In cities and towns all over the
country difficulty encountered by
World War veterans seeking to get
loans on their bonus certificates has
stirred a storm of comment. There
are many critics who believe that the
Government itself should provide the
machinery for making these loans,
from which banks generally are in
clined to shy because of the small
amounts and the red tape involved.
Others are disposed to feel that the
ex-service men actually are fortunate
in finding it not too easy to negotiate
loans, which in the long run Is almost
certain to mean financial loss.
THE certificates are and should be
as good as Liberty bonds" in the
opinion of the Winston-Salem Sentinel.
'but they are not as negotiable. They
are not salable at all, which is entirely
proper, as moments thought back
to the claim shaving scandals of pre-
vious wars, by which soldiers were
robbed through usurious discounts,
will convince any one. 1t appears that
in protecting the service men from
'claim.shavers' the Government has
|
receive their money when 1t was prom
Used. 1t is up to the Government to
find a way to make it's promises good,
and speedily"
The Grand Rapids Press believes
that these loans should be made by
the Government itself out of the funds
it is accommodating to amortiZe the 20
year maturity of these adjusted COM
pensation certificates The loan
value on all outstanding certificates Is
but $4,000 900, whereas the Govern
ment has 100000 already in the
amortization fund"
1.-The money borrowed, suggests
the Indianapolis News. will, of course.
reduce the face of the policy. 1t is
the experience of life insurance COM
panies that such loans are not gen.
orally repaid. The bankers can help
to prevent widespread dissipation of
this borfus money by investigating the
resources of borrowers and advising
against a loan except In cases of obvi-
Gus merit" The Providence Bulletin
finds that 1.-The average value of the
certificates is said to be about 81 ZOO;
that the average of the loans made
ia about $100," and II advises that II
the veterans ARE sacrificing paper
worth 81 POO In order to gain 800 at
AcS'
mistake"
There is no possibility of loss by
any bank making such a loan," OBJ
serves the Philadelphia Evening Bulle-
tin, land there is not the slightest
doubt that the present complications
will be cleared. While 1t Is not to be
| assumed that every bank will be pre-
pared to make such loans in an over
the-counter fashion, or that every
bank will be called upon to accept
such small transactions. II is to be
expected that such provisions shall be
made as shall relieve the service ma
from the necessity of bargaining with
usurious money lenders. Possibly the
momentary check on the surrender of
these certificates will he of benefit, in
fuencing some to hold on to their
notes"
"The LOANS are small and there is no
profit in making them. poipts OUT the
Omaha World Herald, and that paper
adds: Therefore, a good many bank
ers are disposed to be hard boiled
about 1t, forgetting that mad, wild
day when they stood on the sidewalks
with the rest Of us stay-at-homeS to
cheer the boys who were going away
to offer their lives in the defense of
all we have, including our banks. The
Omaha banks, it is good to note, seem
disposed to be as helpful as possible
under the law. They are making the
loans to all veterans who can provide
Identification"
The Chattanooga Times asserts that
there are many who sympathize with