Douglas daily dispatch., 1927-03-15
DIRECTOR HINES
PLANS TO MAKE
ON BONUS

10 enable the veterans bureau TO
make loans to veterans on their 1
adjusted service certificates failed to \
nass before the adjournment of the
soth congress- will not materially
affect the administration of the loan
bill by the veterans bureau, General
Frank r. Hines, the director an
nounced today
Anticipating the signature by the
president of the bill authorizing the
veterans bureau to make these loans'
procedure had already been formu-
lated to authorize all regional offices
and the sub-offices of the bureau
at Manila, p. l., and Honolulu. Hawaii
to extend this service to the veterans
and General Hines stated that the
service will commence on April l.
IT will not be possible to make
loans previous to that. date for the
treason that the failure of the de-
ficiency bill has placed upon the
bureau the necessity for developing
/ ! sufficient fund from which to make
loans.
| In order to do this, it has been
| decided to use the funds when
i accrue for investment in the con-
| yerted insurance fund, at the rate OF
approximately $S,OOO,OOO per month
and which have until recently been
| invested in farm loan bonds. on ana
! after April /, loans can be made up
! to the extent of the amount then
/ available. General Hines also stated
that in the event any additional funds
| become available through the con-
| verted insurance fund over and above
those normally coming in for in
| vestment, these additional amounts
/ also will be used to augment the
! loan fund
/ 1t will also be necessary before
loans can be made, to have special
checks, blanks, forms, etc. printed
and distributed to all the field sta
tions of the bureau and a supply
of the forms to postoffices, and while
it was impracticable to print such
forms anticipating the enactment OF
this bill, this work will now be put
through with all possible haste. Cen
eral Hines emphasized the fact that
the Bureaus function in this matter
is specifically supplementary to that
of the banks of the country, Which
have now reported loans aggregatlng
approximately $27,0OO,000 and in order
that the veterans most needing this
service may be accommodated without
delay. the director hopes that only
those veterans who have failed TO
negotiate any loans with banks VIII
apply to the bureau for this service
In other words, this authority has
been given the bureau to cover an
emergency in veterans relief.
The regulations governing this new
function of the bureau provide that
loans may be made by any or all
regional offices of the U. S. veterans
bureau and by the sub-offices at
Manila, p T., and Honolulu, Hawaii,
upon a veterans promissory note
secured by his adjusted service certt-
ficate, which must be deposited with
the bureau as security, the amount
, to be limited to the loan value oil
the certificate at the date the loan
is made Special disbursing agents
at the veterans hospitals also will
be authorized to make loans, but
only to patients and employees in the
hospital.
only the veteran named in the
certificate can lawfully obtain a loan
on his adjusted service certificate,
and certificates have no loan value
until two years after the date on
which they were written
In order to facilitate Identification
Of veterans applying to the bureau
for loans, the bureau has arranged
to accept the certification of the
postmaster of the community in which
the veteran lives; a responsible
officer of such veterans organizations
as have been officially recognized by
the bureau, or the certification OF
a notary public.
Loans will be made by the veterans
bureau under the same general condi-
tions as govern the banks of the
country in these transactions. The
rates charged at the date of the
loan for the discount of 80 day COM
mercial paper by the Federal Reserve
bank in the district in which is
located the regional office or vet
Grams hospital making the loan. All
notes will be written for the period
of one year and if not paid at due
date will be extended automatically
from year to year for periods Of one
1 year, in the amount of the principal
/ plus interest accrued to the end Of
the Immediately expired loan year,
which total amount shall automatic
l ally becomes n new principal eacn
year A loan may be paid off a:
any time by the payment of principal
\ and accrued interest, and if the vet
eran desires he may repay the amouat
due on his note in installments Of
$500 or a multiple thereof. Where
the amount of the outstanding lean
is less than the loan value of his
:. certificate, the veteran may negotiate
such lean value, the proceeds of the
new loan to be applied first to repay
Il the amount of the former loan with
\ accrued interest thereon, the balance
remaining to be paid to the veteran
4 GIVE CARD PARTY.
4 st. H@tricks card party will be