Evening star., 1932-11-28
BONUS QUESTION
COMING UP AGAIN
Veteran Of IL Years in Con.
gress Due for Renewed
/ Fight at Winter Session.
Sy the Associated Press.

A battle-scarred veteran of IL years
In the legislative wars - the soldiers
bonus-is poised for a renewed cam
paign in the December-to-March ses-
sion of Congress.
Whether it will reach the objective
of the majority of organized veterans
cash payment in full-is question that
already has brought forth considerable
speculation.
The Senate last Spring killed the full
cash payment bill approved by the
House President Hoover has repeatedly
indicated he would veto such meas
ure. Nevertheless, the full-payment ad-
vocates are planning to carry forward
the fight.
Hines Seeks Plan.
Frank T. Hines veterans administra-
tor, and his aides meanwhile are striv-
ing to perfect a plan to permit settle
ment Of the bonus question by provid-
ing for payment Of their actual current
value.
The details of this proposal are being
kept to himself by Hines, who is ex-
pected to give them first to the joint
congressional committee set up to deal
with veterans legislation. The problem
of the administration and his subordi-
mates is fincing means of supplying
money for the plan If Congress should
decide it wanted to follow this course.
In round figures between $500, 10000
and 81 900, 600, 900 would be necessary.
Certificates outstanding have a face
value of S3,514,2e4, ,l41, based on pay
ment in l945, as intended In the law Of
1924 providing for them after four years
OF discussion and action in and out of
Congress seeking to set up bonus
system.
Interest Item Is Large.
The value of each of the certificates,
known officially as an adjusted service
: compe nSation certificate, was fixed by
crediting veterans with 81 daily for
domestic service and S1.25 daily for
overseas service, plus 25 per cent of that
total for waiting 20 years, plus interest
at per cent, compounded annually.
The average maturity value of each
certificate Is 1920, which consists Of
$398 as the base for service, approx
mately 500 for the extra Is per cent
awarded by Congress, anc. in rough
figures. $500 accrued interest.
As veterans have been permitted to
borrow so per cent Of the maturity
value loans aggregating $1.429, ,000, 900
of the $1,757, ,000, 900 eligible have been
made to 2,734,582 former soldiers
Should borrowers fail to pay on either
interest or principal of their loans, the
average $500 certificate would be worth
q balance of Sl68 at maturity. The
average surrender value now is $3.50,
and to those who have borrowed the
$495 permissible only S35 would be left.
The cash surrender value of the GER
tificates now is given by Veterans Ad-
ministration officials at 81 1879 ,00o, 900.
This total includes that portion Of the
Is per cent extra from Congress which
has been earned In eight years.
Reserve Set Aside.
Each year Congress has been setting
aside a reserve to meet payment at
maturity of the certificates. This totals
Sl,2l4, 1000 under appropriations
made, but all that Is not available for
retiring them now. as it has been dipped
into to make the loans, and $134 ,961 900
Is accounted for by approved claims OF
dependents of 134,378 veterans who have
died.
To make up this sinking fund one
suggestion, now only in the discussion
stage, is that allowances and expenoi-
lures for disabilities not of service
origin be used or other economies ef-
fected
r. B. Handy jr, national adjutant OF
the Veterans of Foreign Wars, which
organization was one Of the earliest
sponsors of cash payment In full Of the
bonus, promptly opposed this ioea and
dubbed it another ruse," intended to
block demands for immediate payment
in full.
Recent figures Of the Veterans Ad-
ministration show 334, ,361 veterans dis
abled in connection with service, 431, ,103
with on-service-connected disabilities,
who were made eligible for aid in law
passed by Congress in 1880.
s5Ss,211,113 in Years Budget.
Amounts ranging from $12 to $40
monthly to each, aggregating $75,436,-
668, were paid out in the fiscal year
1882 to veterans not injured in service,
against sl89, ,512,071 to veterans with
service connected disabilities and SILL
.470 for emergency officers retired
pay.
OF the s588,21l,1l3 estimated expen-
ditures for World War veterans during
the current fiscal year. which includes
the direct payments just cited, hospital
ization, burial expenses, ETC., veterans
with cervice-connected disabilities are
allotted $685., ,80o,813, while those with
non-service-connected ratings get $685.
410,300.
In the chain OF veterans hospitals
those whose injuries or ailments are not
connected with their service outnumber
other veterans two to one. The october
81 totals, representative Of each month
for the past year. were: Non-service,
29106~ patients; service connected,
1926.