Evening star., 1932-10-27
NEW POLICY URGED
IN VETERANS AID
Maj. o. W. Clark, Assistant
to Hines, Terms 1t "Crazy
Quilt" in Forum.
fContinued From Tenth Page)

tlncate. let us say, Wlt1 lace Ndlue VI
ST 900. which amount is printed on the
certificate. feel that Congress voted him
this 81 900 as a bonus. and hence that
ST 900 is now due. But the original
basic credit from which this 81 900 de-
veloped was. let us say in an average
case, but 1898. To this amount in turn
was added an additional IS per cent.
and this sum. as indicated before, when
invested at 4 per cent interest, COM
pounded annually. with allowances be-
ing made for the insurance factor, pro-
duceS the 81 900. but only at the end of
20 years. and consequently the $1,000
is not now, in fact, due, but only the
pro rata share over the period since 1925.
Further, some veterans have reached
the conclusion that the face value of
the certificate has been due since the
date of issuance. when. as matter Of
fact. the Government has advanced to
those who have taken advantage of the
loan privileges an amount approximate
ing that which the certificates are actu-
ally worth at the present time.
Provision for Loan.
As previously indicated, before the
passage of the subsequent ,amendatory
legislation, adjusted service certificates
contained a loan provision. effective
only after the expiration of the second
year. and these loan values were ar
rived at actuarially. based on a definite
percentage of the reserve, However
when the Congress was beSieged some
two years ago for the cash payment of
the bonus it was confronted with the
same situattio it had previously placed
in regard to assuming Immediately a
financial obligation of first magnitude.
and found that the Treasury could not
without destructive results raise approx
imately S2500,000, 900, which was, the
amount necessary to pay off the ad-
lllsted service certificates at their face
value. 1t was then that the Congress
decided to fix arbitrarily loan value of
so per cent of the face value of the Ger
tiflcates. This bill received a presi-
Dental veto, not only because of the
breach Of fundamental principles con-
sidered involved in its enactment but
because to have met the amount eSti-
mated to be loaned appeared to require
that the Government borrow this
amount through the sale of the reserve
fund securities. together with further
issues or impose further taxation.
The bill however. passed. and the
prediction OF the Veterans Administra-
ton that loans requested on certificates
would involve raising sl,000,000. 900
proved true. Outstanding liens against
certificates at this time amount to
81 500,000.000. and those who have bor-
roWed are now asking that the balance
be authorized. General economic con-
ditions throughout our country have
tended to emphasize this present de-
mand. Unemployment has stimulated
veterans, as we'll as others. to look for
III
the last session of Congress. as we are
all aware. further and determined de-
mand was made for the immediate cash
payment of these bonus certificates, and
the veterans organizations have gone
on record as supporting this demand
Congress determined to further liberal
ize the adjusted compensation act. and
reduced the interest rate on loans to 3l2
per cent and permitted borrowing on
certificates less than two years old.
1t has been proposed that some plan
be authorized which will permit the
payment Of the remaining value of the
adjusted service certificates to the needy
veterans or those out Of employment
and in need. Most certainly this group
offers the greatest appeal for some
measure of relief It may be estimated
conservatively that between some 60O,-
600 and 100000 veterans are out of em-
ployment. To meet the need of this
group alone would involve an appro-
priation between s400. 900 900 and $780,
900 900. and it would involve an in
creased amount of adjusted compensa-
ton over that contemplated by the act
of some 1886, 100000.
Facts as to Bonus.
r-,,.,. ... ~. f,,a4. ,,.;4l ,.,.-l y. A..
bonus, and Congress must determine at
its next session whether the original
contract made through. the adjusted
compensation act. which has already
been materially liberalized. should be
further liberalized, or, in fact. invali-
dated entirely, to permit the requested
prepayment.
I think 1t can safely be said that the
United States has dealt most gener-
ously with its veterans, now voting an
nually for the World War group more
than $500 100000 in direct benefits, in
addition to providing adequate hospital
and domiciliary care. There becomes
involved in the granting of further ben
efits the matter of public policy. 1
doubt if it can safely be maintained
that the majority of the veterans in the
unemployed class are any worse of than
other unemployed groups of people
Further, the veteran, if he is in need of
medical treatment. or If he is appre-
ciably permanently disabled, can look
to his Government for either medical
care or financial allowance. Should the
Government now provide special relief
for its needy veteran population and
not provide for its other citizens also in
need? And should the Government, if
it feels that these veterans needs should
be met, impose additional taxes upon
those who have incomes but who already
are sorely stressed in meeting their pub
lie obligations? This is the question
which the next Congress will surely
have to determine, and no Coubt our
Congressman will look to their conStitu-
encieS to determine their desires. 1t is
a larger question than just that Of vet
erans' relief. 1t is a question as to
whether or not the country can at this
time bear an expense of such a magni
tude So in the final analysis it Is the
people themselves who will determine
what Congress is to do on this issue,
and it is important that our citizens
know what is involved before express
ing their belief as to the merits of the
bonus prepayment proposal.
Another phase of our problem Of vet
erans' relief which will come up for
public discussion. and already has to a
considerable degree, is whether the ex
isting legislation granting allowances in
cash and privileges for hospital and
domiciliary care to those veterans who
are suffering from disabilities not shown
to be directly of service origin should
be continued.
Monthly Cash Allowances.
In 1880 the Congress authorized the
payment of disability allowance. which
meant that on a lower range than dis
ability compensation benefits monthly
cash allowances would be granted vet
Grams suffering from permanent dis
abilities, at least Is per cent disabling.
without reference to the origin of the
disability: that is, the factor of service
connection was disregarded. In the
more than two years that this legisla-
ton has been on our books more than