Evening star., 1931-02-27

as it may be said of any trust fund
which has the backing of ample Sc
curities''
The Michigan Senator argued that
the sinking fund for the bonus cer7
tificates now amounts to $785, 900, 900.
He pointed out that Congress also was
making available another $4,000, 900
which will go to the sinking fund this
coming year.
Therefore" said Senator Vanden-
berg, there is total of 1897, 900, 900
of Government money or Government
securities in the fund from which pri-
marily these loans to the veterans may
be obtained"
The Michigan Senator said no one
knew just how many veterans would
claim the privilege of making loans
One estimate, he said, was that the
total loans would be around $400 900, ,000
while that of the administrator of
veterans affairs was that it would be a
billion dollars. He insisted that the
Government would be able to obtain
all the money necessary from the sale
of securities and meet all demands of
the veterans for loans The plan, he
said, is ''self-contained" and he added
that he could not understand how any
plan could be more favorable to the
Government itself
Il cannot forget" said Senator Van
denberg that when the Government
asked for S400, 100000 not long ago
there was offered 81 800, 900 900 for the
Government securities which would
have yielded about l per cent annually
as interest. I am sure that the Gov
ernment can get all the money it needs
now at not more than per cent in
tereSt, while the veterans will pay AZ
per cent interest on their loans. There
is no fiscal menace in this plan. If
anybody has a right to complain about
the plan, it is the veterans. Fer this
loan plan has been substituted for the
cash payment of his adjusted CON-
penSated certificates"
No Element of Gift.
Senator Vandenberg said that he
originally had favored granting aid
through the adjusted compensation GER
tif1cate loans only to those veterans who
were in distress. Such plan, he said,
was now favored by opponents of the
pending bill
The President would leave it to the
Government to decide whether the vet
eran is in need" said Senator Vanden-
berg. I'm this bill we leave it to the
veteran himself to decide if he is in
need. If he is he will apply for loan
There is no element of gift in this plan
We are simply the trustees of fund
created for the veterans. We plan to
release to them only what has already
been dedicated to the veterans. The
only question in my mind is whether
this legislation is really for the benefit
Of the veterans. We leave it to the vet
Grams to decide"
Senator Vandenberg declared en-
phatically that the pending bill was not
raid on the Treasury in any sense.
Senator Hastings said that ever since
the World War there had been a CON
slant effort to pay the veteran for his
patriotism" 90
1T can't be done" continued Senator
Hastings. Il would give everything I
have, and so would other Senators, if 1
service rendered by some of these
veterans"
Calls Compromise Surrender.
The Delaware Senator pointed out
that when the original bonus law was
enacted in 1924, the adjusted compen-
sation for the veterans had been care
fully figured, according to their length
of service. and that 25 per cent had
been added to the total. since it was
proposed to postpone the payments until
l945. Furthermore, interest on the ad-
lusted compensation had been COM
pounded and added to the principal, so
as TO obtain the face value of the ad-
juSted compensation certificates.
And now, IA years before payment
is due on these certificates" said Sena-
tor Hastings, "a proposal was advanced
that We pay the full face value OF the
certificates TO the veterans. That pro-
posal was abandoned and we have here
a compromise-this bonus loan bill. The
compromise is a surrender from th-
point of view Of the veterans"
Senator Hastings predicted that with
in few years some of the members OF
Congress would demand that the inter-
est being charged the veterans on their
loans under this bill should be for
given. In this way he said, instead OF
a loan to the veterans, the pending leg
islation would be made to provide for
an actual cash payment long before IL
was due
Senator Cutting of New Mexico, a
supporter of the bonus loan bill, said
officials of the American Legion had
decided in 1924 that a bonus bill with
cash option clause could not be passed
and had decided not to press it.
IF that clause had been retained in
the bonus BILL said Senator Cutting,
Eve would have avoided present diff
culties."
Comments on Message.
Commenting on a statement in the
Presidents veto message that 1t had