Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-26
Message to Congress Brands
as False Assumption Each
Ex-ServiCe Man Can Bor-
row $500 Under Bill.
ESTIMATES $500 LOAN
LIMIT FOR 100000
House Plans to Take Action on
Overriding Disapproval After
Reading of Message, With Pas.
sage Seen by Leaders-Slim
Chance Seen in Senate, However.
BY G. GOULD LINCOLN.

President Hoover today vetoed
the soldiers bonus loan bill.
The Chief Executive in his mes
sage to the House announcing
that he returned the measure with
out his approval, said:
Il regard the bill under con-
Sideration as unwiSe from the
standpoint of the veterans them
selves, and unwise from the stand
point of the welfare of all the
people"
The President pointed out that
"the utility of this legislation as
relief to those in distress is far
less than has been disclosed" AL
though the popular assumption
has been that as the certificates
average $1,000, each veteran will
be able to obtain $500, the so per
cent loan permitted in the bill,
the fact of the matter, the Presi-
dent said, was that over 300, 900
men will be able to borrow less
than 5000 and of these over 300
600 will be able to borrow only
an average of SIS.
At the same time, the President
said, according to the administrator of
veterans affairs, Gen. Hines, 'the prob
able number who will avail themselves
of the privilege under this bill will re-
quire approximately $1,000. 100000.
Must Borrow or Add Taxes.
There not being a penny in the
Treasury to meet such a demand" said
the President, the Government must
borrow this sum through the sale of the
reserve fund securities together with
further issues or we must impose fur
Their taxation"
In this language the President an
swered the statements of members of
Congress who have been insisting that
the money to make the loans to the
veterans was to be found in the Treas
ury.
The House, which originally passed
the bill by vote of 1863 to 80. planned
10 take action on the vetoed bill as
soon as the reading of the message to
that body was completed. The House
leaders have expressed complete con-
ndence that the measure would be
passed over the veto and by more than
the necessary two-thirds vote.
Slim Chance in Senate.
The Senate, where the vote stood 70
to IL when the bill was passed by that
body. was prepared to take up the
vetoed bill as soon as 1t should be
notified by the House that it had put
through the bill Notwithstanding The
presidential disapproval. Administra-
ton leaders in the Upper House ad-
mitted there seemed no chance of sus-
tanning the veto there.
President Hoover in his message made
no suggestion that Congress would have
to be called in special session after
March 4, II no provision were made for
financing the bonus leans. He made it
clear. however, that Congress was lay
ing the problem of financing the loans
on the door step Of the executive branch
of the Government, and itself was max
ing no provision for such financing
Under the rules of the House, vetoed
bill may be debated for one hour before
the vote is taken. BY unanimous con-
sent this time could be extended.
Bonus Law Reviewed.
The President in his message pointed
OUT lildt HuSH Tic dOJuSlcQ COIlpBIlSd-
ton act commonly known as the bonus
law" was passed in 1924 1t awarded
70 3496, 900 veterans approximately
81 1865, 900 900 further compensation for
war service.
ITO this sum-" said the President.
twas added Is per cent. said TO be con-
sideration for deferring the payment
until about l945, the whole bearing
per cent compound interest. The total
face value Of the outstanding certifi-
Gates today after paying the sums due
OF less than $50 and payments in full
10 dependents. is s3,426, 900 900, held
by 1897 900 veterans or an average of
about $1,000 EACH
The President said that under the
bonus law the burden upon the country
was to be an amount each year suffi-
Gent as a yearly premium to provide
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