The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-14
FEELING CROWS
AGAINST BONUS
IN WASHINGTON
congressman Find Public
Sentiment Runs Toward
Pruning Soldier Aid.
BY RUTH FINNEY
Times stan Writer

WASHINGTON, Dec. 14.-Bonus
demonstrators at the capital today
face a congress more firmly opposed
to their demands than it was six
months ago.
A summer and fall spent with
constituents seem to have i'm
pressed representatives and senators
that public sentiment is running
more strongly toward curtailment
OF veterans benefits than toward
extension of them.
More attention is being devoted
at the present time to proposals for
trimming the annual veterans
budget than to bonus legislation.
If the veterans demands are dis
cussed on either floor of congress
this winter, the answer to the claim
that further bonus payments are
due and payable at present will be
made with unusual enthusiasm.
Regret 1924 Decision
Each year members of congress
regret more keenly their decision of
1924 to print on the face of adjusted
service certificates an amount rep
resenting their value in 1945, with
interest accumulations.
This course, followed apparently
in order to get credit for greater
generosity, has been an endless
source Of misunderstanding, trou-
bic for congressman and expense
for the government.
When the adjusted compensation
act was passed in 1924, it was in
tended to equalize the pay of those
men who served in the army and
those' who received high wages as
civilians.
Accordingly it was provided that
each veteran below the rank of
major in the army and lieutenant
commander in the navy be allowed
81 a day for each day of service at
home and SIPS for each day served
overseas. The maximum for home
service was fixed at $500 and for
foreign service at $625.
How 1t Was Calculated
The veterans entitled to $50 or
less under this plan were given their
money at once. The others were
given certificates which actually
we're twenty-year endowment life
insurance policies. This. was done
for two reasons: First in order that
veterans might have money coming
to them as they got along in life,
and their earning power declined;
second, in order to let the govern
ment accumulate the necessary fund
for payments over a period of
years.
1t was agreed that in 1915 the vete-
rams should receive .'ust about twice
the amount to which the daily. al
loWances would entitle them.
The government added 25 per cent
to the amount each man was en-
titled to, calculated interest at
per cent compounded annually, and
issued certificates bearing on their
face the total amount of these sums,
the average 1945 value of each GER
titicate' issued was $1,000.
Fund Already Spent
Certificates have been issued to
3639,156 veterans, and the total
face value of these, due in 1945,
amounts to 1865, 193,265
To get this great sum of money,
it was arranged ttlat the govern
nent should set aside $4,000 900
annually This, at the end of
twenty years, would amount to
81 200,000000. The remainder would
come from interest on the fund as
it accumulated.
When congress permitted veter-
ans to borrow up to so per cent of
the face value of their certificates
in 1881, fourteen years before ma
turity. it paid the veterans in eff
feet the ST and SIPS daily allow
ances which were to constitute the
bonus.
The fund which was to double
during the remainder of time from
interest and dividends on invest
ments was spent.
Members of congress point out
that making further payments
would amount to voting an entire
new bonus for veterans.