Evening star., 1935-01-22
Equities of Adjusted
Service Certificates

To the Editor of The Star:
In recent press dispatch from
Washington, published in The Star,
President Roosevelt made public his
opposition to immediate cash pay
ment of adjusted service certificates.
In listing his reasons, the President
emphasized the following statement:
"The adjusted service certificates
are a form of paid-up endowment in
surance Of which dependents would
be deprived in cash if paid now"
In fairness to the readers of The
Star and the World War Veterans in
your community, the Veterans Of For
eign Wars of the United States pre-
Sents the following facts in refutation
Of this argument:
service certificate in 1924 these Ger
tif1cates represented an average value
of $1,000, payable in 1945. At that
time the purpose back Of these GER
tificates was to give each veteran a
paid-up endowment policy that would
mature 20 years later
Two years after date Of issuance
each certificate carried a loan value.
Veterans in need of funds were forced
to borrow on these certificates, paying
compound interest On the loan. When
unemployment conditions became
acute in recent years, Congress in
1882 enacted law making it possible
for the holder of one of these GER
tiflcates to borrow so per cent Of the
face value.
Today there are approximately
three and one-half million adjusted
service certificates outstanding. Gov
eminent statistics, quoted by Mr.
Roosevelt himself, show that more
than three million veterans have bor-
rowed the full so per cent OF the
face value of their certificates. These
loans are being made by the Federal
Government at the expense of the
veteran for the compound interest
charges being deducted from the bal
ance that remains.
Unless these certificates are paid
Immediately, they will be valueless to
the veteran until January l, 1912
when he will be able to borrow $1,000.
One year later he will be able to
obtain S38.25. On January l. 1914
he viii be eligible to an additional
loan Of S3979. On January !, 1945,
when these certificates fully mature,
the average veteran will receive the
miserable sum of S68.50, all that will
be left as a result Of compound in
tereSt charge deductions.
In other words, through mere
driblets and interest charges, the
value Of the certificate will be de-
stroyed. Neither the veteran nor his
widow and children will possess any
protection in the form Of an endoW-
ment policy or financial benefits.
Back in 1925, when these certifi-
Gates we're first issued the theory Of
insurance protection for the depend
entS of veterans was perfectly sound.
But now that the principal is being
destroyed through the issuance of
loans and the deduction OF interest
charges it is obvious that the original
plan is no longer practical. The So
called insurance protection which Mr..
Roosevelt anxiouSly seeks to preserve
will be dissipated long before 1945.
AS national commander Of the Vet
Grams Of Foreign Wars of the United
States, speak for the overseas vet
Grams of this country when I invite
every patriotic citizen to support this
demand for veteran justice. We are
convinced that our proposal offers the
only practical and constructive
method Of administering Nationwide
relief. stimulating industrial recovery
and simultaneously reducing the ma
tional debt 1t will force the sum of
approximately $4,000 100000 into the
channels of trade and industry, with
resultant benefits for the Nation as
whole, and Americas World War
Veterans will receive the benefits
which Congress intended they should
have when this obligation was recog-
nized in 1924.
JAMES E. VAN ZANDT,