Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-01
BINGHAM BELIEVES CASH BONUS
WOULD DELAY TRADE RECOVERY
Cites Necessity for Loan Alb
soIuteIy Unprecedented
in Peace Times.
Temporary Relief for Certain
Amount of Distress Seen
Under Scheme.

Senator Hiram Bingham, Connec-
Finance Committee mas asked BY
: The. Star and the North American
Newspaper Alliance for an erpres-
sion of his reasons for opposing the
payment OF the DeterGnS' adjusted
COMPENSATION certificates in cash
Just no,U. Herewith is his replys
BY SENATOR HIRAM BINGHAM.
The various proposals for making a
cash payment to the veterans of the
World War at this time, instead OF IA
years from now as provided in the
compensation act, would involve the
Government in the necessity of lmme-
diately raising about $3,000,000000.
Some of the proposals call for lit
tie less and some call for considerably
more. The general demand which is
being made by many veteran organ1za-
tions is for the payment of the face
value of the certificates, a program
which would call for an immediate out
lay of some $3.500,0 100000.
If this money were in the Treasury
lying idle, and could be distributed
among the veterans, it would undoubt-
eddy put lot of currency in circula-
ton and cause a large number OF ex-
penditureS, according to the needs Of
the different recipients.
AS matter of fact. however, it would
have to be raised by issuing a loan
of an amount absolutely unprecedented
in peace times. We issued such loans
during the war and. therefore, many
people think we could issue them now
without any more economic disturbance
than took place in 19l7-1918.
Situation Different Today.
But it should be remembered that at
that time there was no unemployment
or distress, millions of people were
earning big money on war contracts,
no new business enterprises were being
financed except for war purposes, every
factory was working overtime and many
we're employing three shifts and work.
ing all night long.
THE situation today is vastly diff
ferent There are probably 100000
unemployed. There are many factories
shut down Many others are operating
on part time. We are suffering from
a national disaster. the most terrible
drought within the recollection Of any
one now living. The economic struc-
ture of the country is slowly endeavor-
ing TO recover from this knockout blow
as we'll as from the effect of the stu
pendouS shrinkage in security values.
The effect of floating large Govern
ment loan at this time, and issuing
several billion dollars of Government
bends, would be to prolong the present
business depression, to prevent the re-
turn of that confidence which is needed
for normal business activity. and to
continue the period of unemployment
IT do not believe that the great body
of veterans who are demanding the
passage of this legislation, have taken
counsel with their friends who are
authorities in the economic life of the
country.
II was one of those who served in the
Army throughout the war. I was one
of those who felt that it was a great
privilege to come to the assistance of
my country in time of need. Our Army
was not an Army of mercenaries. We
wanted to help America. I believe the
same spirit is alive today, and that
when the veterans realize that what
they are asking will hurt their country
in time of need and distress, they
will no longer demand this legislation.
Prolonged Distress Forecast.
CAS- a matter of fact, the payment of
the face value of the bond certificates
will relieve a certain amount of suffer-
ing temporarily. but will actually pro-
long the distress and suffering. and
postpone the day when we can get back
to normal business conditions and when
there will be work for all who need it
and desire it.
"Of course, 1t is perfectly natural that
the average veteran, when asked if he
would like to receive thousand or ff-
teen hundred dollars-the face value of
the certificate at the present time-re-
plies, yes. 1t is contrary to human ma
ture to decline a gift that could so
easily be used for many highly desirable
purposes. 1t is also perfectly obvious