Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-18
Hoover's Letter
States Objections to Bonus
As House Frames 1t.
Continued From First Page

eminent of about SLIP, 900, 900, and
less the loans made under the original
act, the total cash which might be re-
quired to be raised by the Treasury is
about 81 ,280 900, 900 if all should apply
The administrator of veterans affairs
informs me by the attached letter that
he estimates that If present conditions
continue then rs per cent Of the vet
Grams may be expected to claim the
loans, or a sum of approximately 81 ,000,-
100000 will need to be raised by the
Treasury.
Finds Serious Objections.
IT will not undertake to enumerate
all Of the grounds for objections to this
proposal There are a number of most
serious objections, some of which are
are matters of fundamental principle
affecting the future Of our country and
the service men themselves.
II have supported, and the Nation
should maintain. the important principle
that when men have been called into
Jeopardy of their very lives in protec-
ton of the Nation, then the Nation, as
a whole, incurs special obligation be-
yond that to any other groups of its
citizens. These obligations cannot be
wholly met with dollars and cents. But
good faith and gratitude require that
protection be given to them when in
i'll health, distress and in need. Over
700, 900 World War veterans or their de-
pendentS are today receiving monthly
allowances for these reasons. The
country should not be called upon, how
ever, either directly or indirectly, to sup
port or make loans to those who can by
their own efforts support themselves.
BY far the largest part of the huge
in h &c m ho l.
able to those who are not in distress.
Delicate Situation Cited.
The acute depression and unemploy-
ment create a situation of unusual eco
nomic sensitiveness, much more easily
disturbed at this time than in normal
times by the consequences of this legiS
lation. and such action may quite well
result in a prolongation of this period
of unemployment and suffering in which
veterans will themselves suffer with
others.
by our expansion of public con-
Struction for assistance to unempley-
ment and other relief measures, we
have imposed upon ourselves a deficit
in this fiscal year of upwards of $780,
600 600 which must be obtained by issue
of certificates to the investing public.
This bill may possibly require the Sc
curing of further billion of money
likewise from the public. Beyond this.
the Government is faced with billion
dollars of early maturities of outStand-
ing debts which must be refunded aside
from constant renewals of very large
amount of temporary Treasury obliga-
tons. The additional burdens of this
project cannot but have damaging effect
at a time when all effort should be for
the rehabilitation of employment
through resumption of commerce and
industry.
There seems to be a misunderstand-
ing in the proposal that the Government
securities already lodged with the Treas
ury to the amount Of over $700,000 900
as reserve against these certificates con-
stitute available cash to meet this po-
tential liability. The cash required by
the veterans can only be secured by the
sale of these securities to the public
Sees Need of Funds.
The legislation is defective in that
this $700, 100000 of Government securi-
ties is wholly inadequate to meet either
a potential liability of 1920, 000. 900 or
approximately $1,000, 100000 estimated
as possible by the administrator of vet
Grams affairs. and provision would need
to be made at once for this deficiency.
THE one appealing argument for this
legislation Is for veterans in distress.
The welfare of the veterans as a class
is inseparable from that Of the country
Placing strain on the savings needed
for rehabilitation of employment by a
measure which calls upon the Govern
ment for a vast sum beyond the call
of distress, and so adversely affecting
our general situation. will in my view,
not only nullify the benefits to the vet
eran but inflict injury to the country
as whole"
Letter From Hines.
Attached to the letter was the fol-
lowing one TO President Hoover from
Gen. Frank T. Hines, administrator of
veterans affairs:
My dear Mr. President:
You have requested that I advise
you as to the estimated number of
veterans who would be eligible for
loans, and the amount which would be
borrowed on adjusted service certificates
in the event H. r. 7054 becomes law.
when I appeared before the Com
mittee on Ways and Means, House OF
Representatives, February IL, 1881, in
connection with this measure, / made
the following statement in reply to
Representative Ramseyer:
"'" Based on your experience
and knowledge of the ex-service men,
are you prepared to make any estimate
as to the increased borrowers that bill
like this would probably bring about?
Expects 2,55O.OOO Loans.
"'Gen. Hines Well it depends
great deal, Congressman, on whether
the present employment conditions are
going to continue. If there is a period
still of another year where unemploy-
ment is not going to improve, it would
be my judgment that there would be an
increase of at least 25 per cent in the
men who would borrow
In accordance with the above, 1t Is
my estimate that 2,550,000 veterans will
avail themselves of the full loan value
under the proposed measure and that
the total amount of such loans will be
81 ,283 ,625 900. From the amount there
should be subtracted the 100000
which has previously been borrowed,
making total additional amount which
will be borrowed of 1858, 625 900, or ap-
proximately 81 900 1000 900.
Respectfully,
FRANK T. HINES.
Administrator"