Evening star., 1932-04-26
HINES SAYS BONUS
COST IS TOO HIGH
Payments to Veterans Will
Equal Entire Cost of War
by 1945, He Holds.
BY the Associated Press.

BY the Associated Press.
Brig. Gen. Frank T. Hines told the
House Ways and Means Committee to-
day that Government expenditures on
World War veterans will aggregate by
1945 the cost of that war.
I'VE are practically financing another
war" the veterans administrator testi-
fed for the administration in opposing
cashing the soldiers bonus.
THE Government has spent about
Sc, 900 100000 on World War veterans
today" Hines said. If We continue at
the present rate without changes in law
the Government will have spent $21,-
100000 in 1945 or the cost of
the war.
For the veterans of all other wars
we have spent $4,000, 100000"
Cites State Benefits.
Hines said State benefits for World
War veterans aggregated $519, 9,791 900,
in addition to about S72,000,000 spent
on hospitals and homes.
Hines said he saw no objection to
permitting veterans to borrow money
on bonus certificates less than two
years old. He said 600, 900 veterans had
not yet borrowed on their certificates,
but that 100000 of these could not bor-
row because their certificates were less
than two years old.
| He said it would cost the Government
| $1,l16, 100000 between 1888 and 1e45
to concel the interest charges on the
| loans outstanding and that it would cost
| $55, 900 to cancel the interest TO
| date.
The veterans administrator said pay
ment of the bonus certificates now
would be equivalent to paying 81 ,600.-
| 100000 more than the Government
| promised to pay them in 1945.
Huge Mass Of Data.
papers and documents in preparation
for the hearing
Il want to start by saying that we
are all sympathetic with the veteran
and want to do what we can to help
him." Hines said.
Il need only point, in this connec-
ton, to the fact that Veterans Bureau
expenditures in the month of February
were $70,000,000."
Hines distributed table of estimates
showing that the face value of all GER
tif1cateS issued was S3,641 900. .OOO of
| which $l27,000,000 worth have matured
leaving S3,513,000,000 of certificates
now in force. Outstanding certificates
had on March 81 a loan value OF
S1,704 100000
He then reviewed the enactment of
the bonus law, which he said was often
misunderstood by the country.
100000 Out of Jobs.
When it was finally agreed on that
we would allow these men 81 a day fo-
each days service in the United States
and Sl.25 day for each days service
overseas, plus rs per cent for deferred
payment, We printed on the certifi-
cate the face value 20 years hence, .
Hines said. Il think the veteran
thus gained the belief that this sum
printed on the face Of the certificate
was the amount of bonus due him.
If we pay these certificates of now, il
is equivalent to paying the original bonus
plus rs per cent plus $1,000, ,O00,0 ,000."
Hines estimated present veteran un-
employment at 100000, or approximately
the same number as when the bonus
plan became law in 1924.
Il say this though the American
Legion says its Government campaign
has placed $4,000 veterans" he said
Then, in addition, there are probably
1000 to 100000 veterans on part time
employment"
Hines said that on March 81 total
outstanding loans on certificates aggre-
gated Sl,386, $4,000. This figure in
cluded 4384, 600 loaned out of the
certificate fund, 1862, ,444.oo0 loaned the
Governments insurance fund and
| $50, 900 of unredeemed bank loans