Evening star., 1935-03-26
TYD|NCS ASSA|LS
CASH BONUS PLAN
....,
EeqotiabIe Securities Pay
ment Deemed "Just"
Solution.

y
a 4 machine gunner In the World
War, last night sounded a warning
ssainst the Patman and Vinson bonus
payment plans and urged that a
measure Of which he is one OF the
sponsors be adopted instead.
Speaking in the National Radio
Forum, arranged by The Star and
broadcast over a Nationwide network
Of the National Broadcasting Co.,
Tydings said that the "Patman and
Vinson bills (do) pay more than now
u due, the first with printing press
money! doubtful course for any
country to embark upon-and the
Vinson bill would add about billion
dollars more in interest to the ex-
pense of paying of the bonus than
would be required even if the Gov
ernment waited until 1s45 to cash in
on the bonus certificates"
The Patman bill, sponsored by
Representative Patman Of Texas, is
the measure passed by the House.
Face Value Not Due Until l945.
Senator Tydings explained that the
face value of the bonus certificates is
not due until 1e45. representing the
base bonus pay. and accrued interest
for 40 years. His measure, known as
the Tydings- gs-Andrews-Cochr bill,
proposes that in exchange for the
bonus certificates, the veterans receive
negotiable securities, which now would
be worth slightly more than three
nIarters of the face value of the bonus
certificates. Retained until maturity.
of course, they would equal the value
Of the certificates.
- He amplified that this method of
payment would cost the Government
no more than Is contemplated for re-
demption Of the bonus certificates.
=. 1T does justice to the eX-service-
men; 1t does justice to the Govern
ment; 1t does justice to the tax
payer" he said.
: The text Of Senator Tydings' speech
follows:
am going to talk to you very ear
nestly about an important matter now
pending before the American Con-
gress. I refer to those bills which
seek to pay of in one manner or an
other the soldiers bonus certificates.
Now what Is bonus certificate?
Do you know how the amount of
money shown on the face of each vet
eran's certificate was calculated? If
you do not know, I shall first try to
explain this, for unless you under
stand Just how the amount due each
veteran was arrived at, you cannot in
telligently pass upon the several bills
dealing with this subject. Let me ex-
plain. Congress passed the so-called
bonus act In 1925. That act provided
more than 60 days in the armed forces
Of the United States during the World
War should receive for such service
an additional pay, or bonus, at the
rate OF 81 per day for each days
service within the United States and
sl.25 . day for each days service out
side the United States.
Is Per Cent Added.
Due to the fact that this bonus law
was passed in 1925, seven years after
the World War had closed, Congress
added as per cent to the amount found
to be due each veteran. Every vet
eran can. count the number of days
he served In our armed forces during
the World War. within the United
States and under this law he gets an
extra dollar for each one of those
days; likewise, he can figure how many
days he served outside of the United
States, and he knows he gets Sl.25
extra for each day of that foreign
service. Now if he will add IS per
cent Of the amount that he finds that
Is due him, he will know exactly
what was coming to him in the year
1925.
Let US take a specific case. Sup
pose . man served 275 days in a
training camp during the war and
the bonus act gives him 81 a day
extra for such service, or s275 in all.
Now suppose that after that training
camp service the same man served
100 days outside the United States.
For that service he gets SIPS a day,
or $125. So, the $275 he gets for
his service in the country, added to
the $125 for his service outside the
country, would give to that veteran
800. Then add to this $400 the Is
per cent extra which Congress al
lowed because the act was passed
seven years after the war, and this
man would have $500 coming to him
rs Of the year 1925 as bonus for his
service during the World War.
Used to Buy Endowment.
Yet, any man who had $500 coming
10 him in 1925 for such service has
gotten an adjusted service certificate
for $1,250, or two and one-half
times, the amount Of extra pay al
lowed for service under the bonus act.
Why is this? Because the $500 was
used In 1925 to buy for such veteran
Q 20-year endowment life insurance
policy. This accounts for the fact
that every bonus certificate issued by
the United States Government to a
var veteran contains an amount of
money due the veteran in 1945, which
Is two and one-half times what his
actual bonus pay would amount to as
Of 1925.
hope the veterans will understand
this, for If every veteran will take his
bonus certificate and hold 1t in his
hand he will see that the amount of
money due him in 1945 is about two
and one-hah times what would ac-
tually be coming to him on the basis
Of 81 day extra for service in this
country and $l.25 a day extra for
service abroad.
All endowment life insurance poll
-cies increase in value each year, and
consequently the amount shown on