Evening star., 1935-05-22

hlcT b COHlpNcIc hllO AdlI pIcScH-
tation of the whole subject, fol-
lowed by full debate in the Con-
gress of the United States, set
tlement was reached in 1924.
This settlement provided for ad-
justment in compensation during
service by an additional allowance
per day for actual service rem
dered. Because cash payment was
not to be made Immediately, this
basic allowance was increased by
rs per cent and to this was added
compound interest for 20 years,
the whole to be paid in l945. The
result of this computation was that
an amount two and one-half times
the original grant would be paid
at maturity.
Cites Average Case.
Taking the average case as an
example, the Government acknowl-
edged a claim of $400 to be due.
This $400, under the provisions of
the settlement with the addition
of the 25 per cent for deferred pay
ment and the compound interest
from that time until l945, would
amount to the sum of $1,000 in
l945. The veteran was thereupon
given a certificate containing an
agreement by the Government to
pay him this $1,000 in l945 or to
pay it TO his family if he oied at
any time before 1945 In effect,
1t was a paid-up endowment policy
in the average case for 81 900 pay
able in l945, or sooner in the event
Of death. Under the provisions of
this settlement, the total obliga-
tion of ST, 400, ,0OO,O in 1924 pro-
duced a maturity of face vaiIe of
S3,500,000,000 in l945
Since 1924, the only major
change in the original settlement
was the act of 1881 under which
veterans were authorized to bor-
row up to so per cent of the face
value of their certificates as of
1945. Three million veterans have
already borrowed under this pro-
vision an amount which, with in
tereSt charges, totals 81 100000.
900.
The bill before me provides for
the immediate payment Of the l945
value of the certificates 1t means
paying $4,000 O,OOO,OOO more than
the present value of the certifi-
Gates. 1t requires an expenditure
of more than $4,000, 900 900 in cash
for this purpose. 1t directs pay
ment to the veterans of much
larger sum than was contemplated
in the 1924 settlement. 1t is
nothing less than a complete
abandonment of that settlement.
1t is new straight gratuity or
bounty to the amount of $780,
100000 1t destroys the insurance
protection for the dependents of
the veterans provided in the orig
inal plan. For the remaining
period of 10 years they will have
lost this insurance.
Upsets Careful Plan.
This proposal, submit, violates
the entire principle of veterans
benefits so carefully formulated at
the time OF the war and also the
entire principle of the adjusted
certificate settlement of 1924.
What are the reasons presented
in this bill for this fundamental
change in policy? They are set
forth with care In a number of
whereas" clauses at the beginning
of the bill.
The first of these states as rea-
sons for the cash payment of these
certificates at this time: That it
will increase the purchasing power
of millions of the consuming pub
lie; that it will provide relief for
many who are in need because of
economic conditions; and that it
will tighten the relief burden of
cities, counties and States. The
second states that payment will not
create any additional debt. The
third states that payment now will
be an effective method of spending
money to hasten recovery.
These are the enacted reasons
for the passage of this bill. Let me
briefly analyze them.
First, the spending of this sum,
It cannot be denied, would result in
some expansion of retail trade.
But it must be noted that retail
trade has already expanded to a
condition that compares, favorably
with conditions before the depres-
sion. However, to resort to the
kind of financial practice provided
in this bill would not improve the
conditions necessary to expand
those industries in which we have
the greatest unemployment. The
Treasury notes issued under the
terms of this bill, We know from
past experience, would return
quickly to the banks. We know.
too, that the banks have at this
moment more than ample credit
with which to expand the activities
of business and industry generally.
The ultimate effect of this bill will
not in the long run justify the ex-
pectationS that have been raised by
those who argue for it.
Receives Other Assistance.
The next reason in the first
whereas" clause is that present
payment will provide relief for
many who are in need because of
economic conditions The Congress
has just passed an act to provide
work-relief for such citizens. Some
veterans are on the relief rolls,
though relatively not nearly as
many as is the case with non
veterans. Assume, however, that
such a veteran served in the United
States or overseas during the war;
that he came through in fine ply
sical shape as most of them did;
that he received an honorable dis
charge; that he is today 80 years
old and in full possession of his
faculties and health; that like sew
eral million other Americans, he is
receiving from his Government re-
lief and assistance in one of many =,
forms-I hold that that able
bodied citizen should be accorded
no treatment different from that
accorded to other citizens who did
not wear a uniform during the
World War.
The third reason given in the
first whereas" clause is that pay
ment today would tighten the relief
burden of municipalities. Why, I
ask, should the Congress lift that