Evening star., 1934-11-27
vETERANSFAC|NG
HARD BONUS FIGHT
Administration Spending
Wave in Recession for
Economy.
BY DAVID LAWRENCE.

The World War veterans seem to
be playing in poor luck. Had they
asked for and insisted on their bonus
during the last session of Congress,
they might have gotten 1t. Today the
administration is tending to become
economical again, just as it was about
two years ago when the national
economy act was drafted. The
spending wave is in recession now.
A year ago it was on the rise.
An overwhelming number Of men,
bers of Congress will vote for some
kind Of bonus bill The administra-
ton is prepared for this and will ask
that Congress find the sources of
revenue.
President Roosevelt will try, of
course, to keep the bonus measure
from becoming a source of friction
between him and Congress as did
the bill on veterans expenses last
year. But it is generally recognized
around here that some formula will
have to be found to keep the bonus
measure from being adopted over a
presidential veto.
Search for Compromise.
The search now is for compro-
mise plan. The idea of forgiving
the interest on existing loans is con-
sidered in some quarters and will be
widely supported Another plan is to
give the soldiers the cash value of
their policies as of this year This
u-OlI1H pnct tho G0uorr,
but would hardly satisfy the veterans.
Still third idea is to strike lump
sum and pay it in three or four an
nual installments.
The problem is complicated because,
strictly speaking, the Government
pledged certain amount on the face
value of the bonus certificates and at
the same time promised the sum that
would be accumulated by compound
interest to the year l945. This is
why critics of the so-called bonus say
the total sum is not due and should
not be paid until it has actually ac-
cumulated.
Most of the veterans, however, never
did consider the face value as the
amount owed them, but the principal
plus interest. so when they want pay
ment now. they want the full sum.
1t is on this basis that compromise
by agreeing on a fiat sum may yet be
reached.
Certainly the payment of bonus
today will do many veterans more
good than decade hence.
Three Objections Made.
The usual objections to payment
now are. first, that the money isn't
due; second, that the Government
cannot afford it. and, third, that if
the bonus is paid in full. the veterans
will be back for pensions in few years
anyhow.
These criticisms are being answered
thus: First. that the money is owed
and that it is not unusual for a debtor
and creditor to agree on anticipating
full payment either by discount or
some other reduction; second, that
the Government has been paying out
vast sums and borrowing for nom
liquidating projects and all sorts of
schemes that are not half as impor-
tant as giving individuals little capi-
tai they might use to pay debts or get
DbuA tSt OAl q DCLlCl IOdQ, dllu,
third, that the veterans will be asking
for pensions in due time whether or
not they get paid their bonus money.
1t is going to be difficult for the ad-
ministration to raise the cry Of bal
ancing the budget" because it has as
sured the pleaders for budget-bal-
ancing that it cannot balance the
budget for some ,time to come. The
only argument the administration can
use is that many of the recipients do
not need the money and that a dis
tribution to the needy alone is not
favored by the veterans organizations
themselves.
Veterans Influence Great.
The bonus question has been up
again and again since the World War
in one form or another, and it is never
settled because the political influence
Of the veterans is SO powerful that
only the Executive vetoe has stood
in the way of full payment. And no
matter how popular the President Is
there is little chance that his party
will sustain him on matter which
is SO closely related to the reelection
or renomlnation OF individual mem
bers Of Congress.
Democratic leaders sense this tide
and are trying to meet it with con-
structive plan. Their strategy will be
to ward off vote as long as possible,
keeping bonus bills in committee till
the end Of the session. and then
striving to make a settlement that
will at least divide the bonus strength
in Congress. If economy becomes the
watchword in the next session, as it
did two sessions ago, with a national
psychology tuned to that note, the
veterans will be disappointed in the
outcome of their efforts to get full
payment of the bonus. And it begins
to look as If the administration is GO
ing economical again.