Evening star., 1932-09-17
ECONOMY LEAGUE
VOICES OPPOSITION
Holds Immediate Bonus Pay
ment Would Cause IntoI-
erable Burden.

By the Associated Press.
NEW YORK, September 1.-THE
National Economy League last night
said immediate payment of the bonus
would impose an intolerable financial
burden on the country" ard declared
itself "unequivocally opposed" TO the
demand of the American Legion.
In a statement issued by Archibald
D. Roosevelt, secretary. the league said
its position in opposition to immediate
payment of the adjusted compensation
certificates was based on three funda-
mental reasons"
Fundamental Reasons.
"First, because the raising Of the
approximately $4,000 100000 required
for immediate payment would impose
an intolerable financial burden on the
country. which would prolong the de-
preston and unemployment.
Second. because the demand Is
without fair basis or right on its merits.
It is, in effect. demand for the i'm
mediate payment of that position OF
the certificates represented by the In
terest on the credits allowed for home
and overseas service This interest. in
greater part, has not yet been earned
and its payment at this time would in
crease the cost to the Government by
about $1,000 100000 over the amount
originally voted by Congress to be paid
Third, because a yielding to this
demand would mark surrender OF the
interests of the public at large to the
dictation of an organized minority"
The league said that the adjusted
conversation certificates constituted
contracts with the Government and
must be honored and that the ques-
ton was not whether the bonus should
be Cancelled or repeater, but whether
the holders of these contracts shall
receive payment ls years before ma
turity."
Sum Already Paid Out.
"It should be understood" the state
ment read. that there has already
been paid out in settlement with
beneficiaries of deceased holders OF
adjusted compensation certificates the
sum Of S175,363,985. In addition, ST.
455.282.229 has been paid out upon
loans on the certificates. This leaves
about $4,000, 100000 to be paid In
1945.
THE premature payment of the Ger
tificates. as compared with payment at
maturity, would, according to a recent
official estimate, increase the cost TO
the Government by about 81 800, 600 900
over the amount originally voted by
Congress to be paid, and thus impose
an entirely new burden on the Gov
ernment."
The league declared the bonus ques,,
tion was only part OF the vast ana
increasing expense of veterans pene,
fits" with $5,728, 100000 already palo
out from the Treasury for veterans o!
the World War alone and with annual
charges now reaching the s70o,000,ooO
mark"
About half Of the current annual
appropriation of $928.000 600 can ne
eliminated" the league said, ii Denents
are restricted. as they should be, to the
dependents of men who lost their lives
in service and to veterans who actually
suffered disability through the war.
Another Deficit Certain.
Asserting that the operating deficit
of the Federal Government for the last
two years was s3,788 ,079, 144 and that
another large deficit lis virtually Ger
tain in the current fiscal year, the
statement added: In the face OF tnese
conditions 1t is apparent that new
burden Of over two billions would
further impair confidence and prolong
the depression" 49,.
The essential points" which the
league said the public should unoer-
stand were these: First, that the de-
mand for full payment OF the bonus Is
a demand for payment Of an obligation
not due until 1945: second, that nearly
one-half Of that obligataion has ALREADY
been loaned on a so per cent basis
third, that to pay the full bonus now
would require the raising of $2,3oo,-
600. 900 and would vastly increase the
cost of the bonus to the people"
Declaring the League proposed 10
fight this issue to a finish," the state
ment continued:
"The great body Of citizens who are
being imposed on are at last being
aroused from their apathy. The ma
1ority Of the veterans themselves must
again hear the call Of their country and
rise in protest against the present Dur
den, and the still greater prospective
costs. To surrender to the dictation OF
the organized minority which Is seek
ing to impose this demand on the
country would be a confession OF I'M
potence on the part of the electorate
and a betrayal of the principles upon
which this country was founded"