Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-16
The Bonus Problem


the World War cash for their adjusted
compensation certificates has assumed
| the proportions of a monster which
threatens to run away with both political
parties, to destroy the financial bal
ance Of the Government and to retard
the restoration of business-which
means the restoration of jobs. It Is
true that the proposal has been put in
the form of "loan" on the veterans
bonus certificates, permitting them to
borrow up to so per cent of the face
value of the certificates. But the cash
has to be found to advance to the vet
Grams whether the legislation provides
for loan or cash payment.
Secretary Mellon, who after all knows
more about the real financial condition
OF this Government than do most
members of Congress or other more or
less voluntary critics, has stated clearly
that If this proposed bonus legislation
is put through and becomes law. it will
make necessary the raising of billion
dollars by the Federal Government,
with the Treasury already facing a
deficit Of half billion dollars on June
80. In spite of this warning from the
head of the Treasury Department, the
congressional leaders, with few excep-
tionS, appear to be bent on jamming the
legislation through If it is to be halted
at all, the President of the United
States seems to be the man who must
do it. The members of Congress, if the
President vetoes the proposed bonus bill,
may return to their veteran constituents
and say: I'VE did our best for you An
inhuman Chief Executive is to blame
because you did not get the cash
bonus"
There seems to be growing impress
sion that if the bonus bill is sent to
the President he will veto it. The Con-
gress may be able to put it through de-
spite his veto, although that requires
twc-thirds vote in both houses. If
the Congress is bent upon upsetting the
finances Of the Government and plung-
ing the country further into debt at this
time, 1t seems at least 1t should have
the courage to provide means to pay
the bill. Why not rush through at the
same time bill to increase the Federal
taxes? The answer is clear. Neither
Democrats nor Republicans, no matter
| how much they may love the veterans
Of the World War, are anxious to have
placed upon them the onus CT increas-
ing taxes at a time when depression
has hit the country hard, when millions
Of men are out Of work and the prin-
cipal problem is to get them hack on
their jobs. Increased taxes have never
yet acted as a boost to business. Rep
resentative Frear of Wisconsin, one of
the progressive Republican group, has,
1t Is true, offered in the House a bill to
increase the surtaxes on large incomes
to meet the payment to be made to the
veterans. But it has not, so far, reused
the leaders of either party to great en-
thusiasm.
Supporters Of the bonus legislation
say that their plan is merely to make
1t possible for the veterans to realize
fifty per cent on the value of their GER
tif1cates, which must be paid anyway
in 1945 But they have taken a time in
the affairs of the American Nation
when it is particularly difficult to ad-
vance this money. They intend to hand
out to one group of men who are out
Of work seven hundred million to a
billion dollars, while to another group,
also out Of work, it Is passing out
nothing Every one knows that there
is a large proportion of the war
veterans who are not out of work today.
If summation of the uses to which
this cash is to be put by the majority
Of those who will receive it could be OBJ
tanned in advance, 1t might give the
Congress pause even now. There will,
Of course, be percentage who will use
it to buy necessities. If they alone
could be reached, the legislation might
other veterans who look with favor
upon obtaining money at a four and
half per cent interest rate with which
they can reduce the mortgages on their
property, or buy bonds or stocks which
will yield them greater interest than
four and one-half per cent, or auto
mobiles or what not.
The Government today is caring gen.
erously for its disabled veterans. 1t
should do so to the limit. The Govern
ment is spending practically billion
dollars each year now en- the veterans
of the World War This does not look
like ingratitude. But If The burden OF
gratitude is to break the financial back
Of the Government which these veterans
fought TO uphold, because Of increased
expenditures to veterans who are whole,
where is the sense in it all?
Wall Street information is to the ef-
farf that gtIhcfa initial h,ieipeSC will on