Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-18
.HOOvER'S PROTEST
At BONUS IGNORED
Bill Is Reported Quickly to
Senate and Action by
Tomorrow Seen.
Continued From First Page)

1dCcS VI tldll d UOlldTS,
President Hoover said:
THE welfare of the veterans as a
class is inseparable from that of the
country. Placing strain on the saw
ings needed for the rehabilitation Of
employment by measure which calls
upon the Government for a vast sum
beyond the call of distress. and so ad-
versely affecting our general situation,
will in my view not only nullify the
benefits to the veterans but inflict in
jury to the country as whole"
The Senate supporters of the bonus
legislation were determined to force the
bill before the Senate for early consid-
Grafton. A motion by Senator AShurSt
of Arizona, Democrat, to discharge the
committee from further consideration
OF the House measure was pending in
the Senate when that body met at
noon.
House Gave All Bonus.
The House Ways and Means Com
mittee, when it brought out the bonus
bill which was passed by the House by
a vote of 1863 to 80, discarded a pro-
posal that the loans to veterans of the
World War be confined only to those
who could show that they were in act
ual need.
The attitude of many members of the
Senate has been to liberalize the bill
passed by the House, rather than to
restrict its provisions.
President Hoovers letter to Senator
Smoot set forth the fact that the chair
man of the Finance Committee had re-
quested the Chief Executive to give his
views on the House bill.
In view of the short time remaining
in this session for it's consideration, I
shall comply with your request" con-
tinued the President.
May Need $1,000, OOO, 900.
The President baSing his opinion on
information conveyed to him by Gen.
Frank T. Hines, administrator of vet
Grams affairs, expressed the view that
rs per cent of the veterans would claim
the loans. or 2,550,000 in all. This
would require, the President said, the
Government to raise approximately
81, 600, 100000 to meet the loans.
The Chief Executive said he would
not undertake to ''enumerate all of the
grounds for objection to this proposal"
He said however, that a number are
most serious, some Of which are mat
tiers of method and some of which are
matters of fundamental principle affect
ing the future of our country and the
service men themselves"
dent, land the Nation should maintain,
the important principle that when men
have been called into jeopardy of their
very lives in protection Of the Nation,
then the Nation as whole incurs
special obligation beyond that to any
other group of its citizens. These cb-
legations cannot be wholly met with
dollars and cents. But good faith and
gratitude require that protection be
given to them when in Ill health, dis
treSs and in need. Over 100000 World
War veterans or their dependents are
today receiving monthly allowances for
these reasons.
Bars Those Self Supporting.
THE country should not be called
upon, however, either directly or in
directly. to support or make loans to
those who can by their own efforts sup
port themselves
BY far the largest part of the huge
sum proposed in this bill is to be avail
able to those who are not in distress"
Senator Harrison, Democrat, MisSiS-
sippi, asked Chairman Smoot after the
letter was read if he thought President
Hoover would veto the bill.
81 think he will" said Smoot.
Senator Reed, Republican, Pennsyl-
vania, said, That is a fair interpreta-
ton of his letter"
Undersecretary Mills of the Treas
ury came to the Senate committee
hearing with Director Hines.
Estimate of Loans.
Senator Reed asked what proportion
of veterans would exercise their right
to borrow so per cent of the bonus GER
tificates.
Gen. Hines said "if employment con-
ditions continue as now we should be
prepared to take care of IS per cent OF
the veterans"
That means 2,550,O00 veterans" he
continued, Ito whom we would pay out
81 ,283. 100000. Subtract from that the
$3.50, 600, 900 already loaned and this bill
will cost just less than ST 600 100000"
Hines said the Az per cent interest
rate allowed by the legislation was going
TO attract borrowers.
Reed Suggests Change.
Senator Reed suggested making the
loans available only to those who have
already borrowed on their certificates
at per cent interest.
Senator Harrison protested this
would not help the fellow now in dis
treSs."
Hines recommended two proposals:
ID Limitation of the loans to those in
distress, and 90 Payment of the loans
over monthly or quarterly periods.
The administrator expressed conf
dence that the veterans own statement
would be sufficient to determine the
factor Of need.
Mills testified he believed the veteran
with gumption' would take advantage
of the Az per cent interest rate TO
make the loans and make some
The average veteran without gump-
ton would take advantage of it any
way" he added
You are going to make a difficult
for the Treasury" he said
and possibly do harm TO the business
recovery of the country"
Bonds Held Necessary.
Mills told the committee it would "be
absolutely necessary" for the Treasury
to issue bonds to meet the cost of the
legislation.
1T seems to me to be just common
ordinary good business for the Govern
ment TO keep out OF the bond market
now" he added with some heat.
He said at the March Is quarter the
Government would engage in a 81 $780,
900 900 financial transaction. OF this,
he said, Sl,100,00 900 would be a re-
would be for new money for the Treas
ury.
Vandenberg Gives Data.
An argument that the bill would ne
cessltate no additional Treasury financ-
ing but would take care of itself was
made by Senator Vandenberg, original
sponsor of the SO per cent loan measure
To correct what he termed "miscon-
ceptions" of the legislation, he outlined
IL points which he called "succinct
summary of facts in connection with
the measure" They were:
l. A total of $500 900 adjusted COM
pensation certificates were issued with
a maturity value of $500, 900 900, the