Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-06
VETERANS MAY ASK
F ULL BONUS PAY
Legion Convention Prospect
StirS Administration Fac
ing Big Deficit.
BY THEODORE c. WALLEN.

Word comes to Washington that the
administration has lost first ground in
its struggle against immediate cash
payment of all bonus claims. With the
Treasury facing an indicated deficit of
! 81 500 600, 900 in the current fiscal year,
clear majority of the State delegations
to the American Legion Convention at
Detroit September 81 have been in
structed to vote for full and prompt re-
demption of the World War veterans
adjusted service certificates.
On the basis of this information from
certain Legion leaders, administration
officials have joined in formidable eff
fort to turn the tide in advance of the
convention. 1t IS feared that, with vet
Grams organizations stronger than ever
before. the adoption of a strong bonus
resolution at Detroit would give ire
mendous impetus to the bonus move
ment by the tire Congress conyenes
1t is felt that the proximity of the
1882 elections, faced by the entire men,
bership of the House and third of the
membership of the Senate, plus the al
most even division of the next Con-
gress between the major parties, will
make it even more difficult to stem
the bonus tide this Winter than last
Winter, when a compromise bill was
driven through over President Hoover's
veto.
Loans Exceed Estimates.
Loans made under that act already
have exceeded the administrators esti-
mates, reaching a total of 1898, 634 996
as of August %. This is due to the
increase of the loan value OF the Ger
tificates from 22i2 per cent to so per
of no tod
by the loans previously made on bonus
| certificates, total payments up to the
close of the last week amounted to
$1,206, 038,562.
AS the total face value of all certifi-
Gates issued by the Government would
be 1896 ,341 400, the veterans demand
for the remainder would cost the Fed
eral Government more than S2,1C0.000,-
900 additional. With the majority of
organized eX-service men in their pres
ent mood administration officials are
frankly worried by the prospects that
Congress might be forced to cash the
| bonus certificates at once and also to
enact other veterans relief legislation.
Representative Royal c. Johnson, Re-
publican, of South Dakota, chairman
of the House Committee on Veterans
Legislation. has estimated that COM
plete congressional capitulation to the
former service men on the eve of the
election would make it necessary for
the Treasury TO float bond issues which,
together with those already offered,
would aggregate S5.0O0,0O ,000
The advices that the conservative
leaders of the legion have lost control
of the bonus situation in the pre-con-
vention campaign were taken to indi-
cate that the Administrations anti
bonus efforts to date have fallen short
of their mark. President Hoover began
the fight against full cash payment as
soon as the so per cent payment bill
was passed over his veto. The Admins
tration has improved every opportunity
meantime to warn the nation of the
growing demand for full payment. 1t
has sent several of its spokesman out
into the field to combat the bonus SEN
timent. Brig. Gen. Frank T. Hines, Ad-
ministrator of Veterans Affairs, re-
ceived a cool reception when in IAN
unofficial capacity" he went before diff
ferent State conventions. notably that
in Utah. and urged members to urge the
ADOPTION in the Detroit convention OF
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