Evening star., 1934-12-19
Rate by Mail-Payable In Advance.
Bonus Demands.

new Congress the soldiers bonus lines
are Tightening. The very fact that
administration leaders, like Senator
Harrison of Mississippi, are talking Of
compromise brings home the thought
that President Roosevelt may find it
impossible longer to halt the cash pay
ment Of the veterans adjusted service
certificates, although payment Is not
due until 1945. The Harrison COM
promise-the payment Of the cash
bonus to veterans who are in need
has so far been rejected by the vet
erans' bloc. Nevertheless, the Vet
erans' Administration is making a
survey to ascertain how many veterans
are in need today.
Failure on the part of the Govern
ment to balance its budget, or to halt
huge expenditures for many kinds of
so-called recovery activities, or to
make any serious effort along these
lines, has provided potent argu-
ment for the supporters of immediate
cash payment of the bonus. Why
should not the veterans be paid a
debt that is owed them, they ask, If
this spending on a huge scale is
to continue?
This line of argument disregards, it
is true, the fact that the Government
Is deeply in debt and to pay out an
additional $4,000 10000 at this time
would put further serious strain on
Government credit. Nor does it take
into consideration the fact that the
Government does not today owe the
veterans the face value Of their ad-
justed service certificates, nor will 1t
owe them that amount until 1s45.
When the bonus law was written the
veterans were given a dollar day for
service in this country and dollar
and a quarter q day for service
abroad. Since this bonus was not to
be paid for twenty years. Congress pro-
vided for the payment of compound
interest on the amounts actually due
the veterans at the rate Of adjusted
compensation. But when the certifi-
Gates were issued their face value in
cluded both principal and interest for
twenty years.
Now, ten years before the payment
OF the face value Of these certificates
becomes due, 1t is proposed to go ahead
and settle up. In justice to the Gov
ernment and the people generally, who
must pay this bonus, a compromise
could well be effected. If payment is
= now insisted upon, which would give
to the veterans the principal sum plus
compound interest for ten years in
stead of twenty. This would materially
reduce the value Of the certificates. 1t
probably would result in the retention
of their certificates by many of the
veterans who might prefer to cash in
for the full value in 1945 rather than
take a considerably less amount to-
day. The veterans bloc is demanding
not only the payment of the full face
value, including the interest up to
~ as45, but also the remission Of interest
owed by the veterans who have bor-
rowed more than $1,000, 900 900 on
their bonus certificates from the Gov-
ernment already and 10000, 900 more
from the banks.
There is school of thought on the
bonus question which holds that 1t
would be better for the Government to
go ahead and pay the bonus without
delay, materially injuring the credit Of
the Government if necessary, in order
p to bring the powers that be to q
speedier realization that the present
orgy of spending for many kinds Of
projects must come to an end or the
Government and the people will face
bankruptcy. That, however, appears
to be suicidal thought.