Evening star., 1932-08-29
LEGION MAY FAVOR |
FULL CASH B0NUSI
20 State Conventions Already
on Record for Immediate
Payment of Principal.
BY DAVID LAWRENCE.

notwithstanding the agitation for a
decrease in Government expenditures,
official Washington is preparing to hear
that the American Legion IN its ma
tional convention at Portland next
month will 60 on record as in favor of
an outlay of S2,400 900, 900 through the
immediate cash payment of interest
and principal ordinarily due in 1945 on
bonus certificates.
Legion conventions in 30 States con-
trolling $50 out of total of 1,415 votes
are reported to have gone on record
already SO the national convention of
the Legion will be merely ratifying what
the State conventions have demanded
Fifteen States have reversed their
action of year ago when the Detroit
convention listened to a. plea from
President Hoover and did not 60 on
record as favoring the bonus.
Due to b. e. r Eviction.
Reports from ex-seft ice men are to
the effect the shift in sentiment is due
in large part to the eviction of the
bonus army from Washington.
The difference between the Re
publican and Democratic nominees on
the question, however, is yet to be de-
terrnined if, indeed any exists. The
Roosevelt to a 25 per cent cut in Gov
ernment expenditures.
B. M. Baruch of New York who
drafted this plank and secured its in
sertion in the platform. has just writ
ten magazine article declaring
ST .OC0, 100000 can be Topped off the
Federal Budget which is usually around
S4,0O0.O 100000 year. He gives a cut
of S400,000000 in expenditures for tn
Veterans Bureau as making up aim st
half of the 1,000,000,000 he believes
can be saved.
May Be Pledged to Crt
This is taken to mean that Gov
Roosevelt, if elected would be pledged
to such a cut. Mr.. Baruch defends the
proposal on the ground 1t can be en-
ccmpasSed in few words, namely that
no part of the appropriations should
be paid to any person except for or on
account of an actual was connected loss
or disability"
The inference is that the remain
ing $500 100000 now being spent by the
Veterans Bureau is not Tor var-con-
nected loss OF disabilities. This is also
the contention Of the groups led by
Archibald Roosevelt, son of the late
President Roosevelt. and the leaders of
the newly organized National Economy
League.
The immediate payment of the bonus
is popular with the Legion rank and
file because Of the argument that "the
Government owes the money and has
agreed TO pay it" and that the veter-
ans need it now. Government officials
answer that the payment which was
agreed to was one which would become
due in 1915 and that what the men are
asking for is interest paid up TO 1945
when as a matter of fact the Govern
ment could not possibly obtain the
funds under the original agreement un-
less the principal were invested and the
interest collected as of 1e45. 1t is to
anticipate the payment of the interest
that members of Congress have pro-
posed borrowing the money aid pay
ing the bonus.
Bond Decline Feared.
The objection made in Congress is
that a borrowing of $2,400,0 100000
would unsettle the bond market and
cause a drop in the value Of Govern
ment bonds and affect the secondary
reserves of many banks whose solvency
would be threatened once more.
The service men argue that the Gov
ernment stretched its credit by more
than three billions in authorizing the
creation of the Reconstruction Finance
Corporation and no untoward results
followed. Again Government officials
answer that the money obtained from
the R. F.. c. is a loan that will be paid
back with interest, whereas payment
of 81, 400, 100000 would add tc the public
debt and could only be repaid out of
increased taxation.
Before the end of the present cam
paign it will be interesting to see
whether both presidential nominees
come out against cash payment of the
bonus or whether both avoid the issue
as too dangerous politically or as some
thing that can be more expediently
handled after the election
(Copyright, 1922