Evening star., 1932-04-06
Favors Bonus Payment
On Installment Plan
To the Editor Of The Star:

To the Editor Of The Star:
Although q World War veteran and
badly In need of the money, 1 am
unalterably opposed to the cash pay
ment of the bonus If it means an In
crease In taxation or in the bonded
indebtedness of the United States.
I am, however, in favor of the re-
turn of prosperity, and it has always
been my contention that this can only
be accomplished by restoring the con-
! suming power of the masses. Curing
the depression by the process Of flltra-
ton from huge financial pools is about
as slow and uncertain as hunting quail
with rife.
Covering the greatest possible area
! in the shortest possible time with
money to buy essential commodities is
! the only answer to our present eco
| nomic crisis. Initiation of the cur
rency. increasing the intrinsic value of
all basic commodities, through in
creased buying, is logical step in the
right direction.
Stripped of all technicalities and
freed of all the restraint of precedent
1t would be physically possible to re-
store prosperity by putting $50 In cash
! In the hands OF every man, woman
! and child in America-hguratiyel
handing 1t out as samples on the same
theory by which a manufacturer in
troduces new product by the sample
method
But, inasmuch as the Government
has no legal excuse for the distribution
OF such cash. and as capital is still
psraly1ed with the same fear that
causes a recluse to starve TO death
with thousands of dollars hidden about
his premises, the payment of the
soldiers bonus, by initiating the cur
rency, offers the Government one
legitimate vehicle for the redistribu-
tion OF wealth through direct channels
Last year the principal cry of admin
lstratlon spokesmen against the SO per
cent payment of the bonus was the con-
tentlon that World War veterans were
incompetent to spend approximately
SoUO In cash in a lump sum. It was
emphatically stated on the floor of the
senate Hastings of Delaware and Reed
OF Pennsylvania) that the money would
De dlsSlpated in riotouS living and Sec
ond-hand automobiles. How true this
was has since been shown by an ana
lytical survey by the director of the
veterans Administration, which reveals
tnat about 8 per cent of the money was
spent IN what could be called a profit
gate manner. However, the same cry is
going to be heard this year, and 1t is
my suggestion that it be stopped in this
manner
Pay the soldiers bonus by initiating
the currency and give the veterans the
money at the rate of 10 per cent or 20
per cent per month until the total has
Deen paid. Let the Government sir
render the certificates already hypothe-
Gated, or certificate in lieu thereof.
and require the veteran to designate a
depository for this certificate In any
oank that comes under the supervision
OF the Treasury Department. The bank
uses the veterans certificate as a de-
mand on the Federal Reserve banks for
the cash due each month and upon re-
ceipt Of the money turns it over to the
veteran.
In cashing the balance of nv. ad-
Justed compensation certificate in this
manner. would receive S63 per month
Tor 10 months on one basis or Sl26 per
month Tor five months on the other.
Bank deposits in the country would
show an increase of two billion dollars
over this period and the veteran coulG
not splurge his bonus on one grand
orgy. while the secondhand car would
De entirely out of the question,
. OhucI Tile impulse gwen TO business
1t would improve and the Treasury
could gradually retire the inflated cur
rency. There is no telling how much
more serious our present condition
would be If the payment on the bonus
last year had not been made. I know
OF lmmeasurable good that it did. and
It can be done again. In any event,
Tor one do not want tombstone over
my head when leave this vale of tears
that has been purchased by a bonus
certlncate. ROBERT E ZONES