Evening star., 1932-10-27

tificates outstanding. In other words,
this fund which Congress annually aug
ments by appropriations, was to be In
vested in Government obligations in
such amounts that, together with the
earnings on the appropriation annually
made, would be at the end Of the 20
year period suficient to pay the face
value of all certificates then out
standing
Payments to 122, 900.
As of the end OF September, $4,000
beneficiaries of adjusted compensation
had been paid In cases where veterans
died before applying for the benefits OF
the act in an amount aggreg eating more
than $39, ,855 900, and Isl 400 veterans
received some $5, ,000, 900 in cash because
Of their adjusted service credits being
$50 or less. Three million, six hundred
ninety-three thousand certificates. with
maturity value in excess OF $685.
900 900, had to this time been issued.
OF this number 1874 900 had become ma
tured on account of death and $l35,-
900 900 had been paid to the designated
beneficiaries. There remain, therefore,
3,559,O00 certificates in force, with
maturity value of $500, 100000, with
present loan value of $1,761 ,000, 600.
approximately 80 per cent OF the hold
ers of adjusted service certificates have
borrowed a total of 81, SOC, 600, ,0O0, mean
ing that only approximately 100000
veterans have not borrowed on their
certificates and rather have preserved
them as insurance for their families.
The present value of the reserve fund
set up by the Congress to meet pay
ments occasioned by the maturity OF
the adjusted service certificates Is ST.
2l40O0,0OO Having in mind the ma
turity value of these certificates. 1t Is
obvious that an appropriation OF ST.
800 600 600 would be necessary to meet
the demand for the immediate prepay
ment Of the bonus. The present worth
of the outstanding certificates IS, If the
portion Of the 25 per cent additional
credit which has been earned Is con-
sidered as due, 81 ,879 600 900, or 81 1885,
100000 less than the amount that the
proponents Of the immediate payment
OF the bonus would have us now pay on
these certificates, thus increasing the
amount of adjusted compensation by
this figure. Thus we see that the pro-
posal for the prepayment Of the bonus
involves an additional cost of the bonus
legislation over that originally contem-
plated when the legislation was enacted
Of more Than 81 500. 900. 900.
Purpose OF bonus.
At the time Of the enactment OF the
bonus legislation 1t was generally agreed
that the purpose of the bonus was in
surance for the veteran against old age
and reduced capacity, making available
to him at a time it probably would be
most needed an appreciable sum to meet
his needs at that time, or in the event
Of his death to help those dependent
,1pop hin, hridOo the Qan hetUepp the
time of his death and that time when
they would be able to secure necessary
employment or other forms of material
assistance. Many of our veterans and
many of those interested in their well
fare have lost sight of this original pur-
pose and have lost sight of the fact that
the increased credit Of IS per cent was
an additional credit for deferring the
payment of adjusted compensation some
20 years. The Government has more
than kept the contract it made with the
veterans when this legislation was
adopted; that is, that the indebte ness
We are talking about was not due until
1945 and 1916. Already there has been
advanced to the veterans some $780,
600 900 more than the original adjusted
compensation act contemplated would
be available to them at this time
through increasing the loan value on
these certificates to so per cent. Under
the terms of the existing legislation, it
might appear logical, because of the
widespread need, TO advocate that the
Government pay to the veterans the
ppSent worth of their certificates, which
itZEould readily do. but no one has ad-
vfeted such a program, largely, l am
sks, because the amount that would
be 6aid to some 80 per cent of the vet
Grams in that event would be so small
as to be entirely unattractive to them.
and the funds so secured to the great
ma jority would be Of little material as
sistance in meeting unemployment and
need
Many veterans and those interested in !
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