Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-07-21
REVIVAL OF BONUS
MAY DELAY TERM
New Move for Cash Pay
ment to Veterans Dis
CusSed at Capitol.
BY J. A. O'LEARY.

A new move to revive the soldier
bonus issue is being discussed by some
bonus advocates at the Capitol. and
If it materializes, will constitute ONT
more obstacle for Congress to sur
mount before it goes home.
Some of the supporters of cash pay
ment of the adjusted service certifi-
Gates have worked out modified plan,
which, they indicate, may be offered
as an amendment to one of the
major bills remaining to be acted on
How far such an effort would gel
is problematical, in view of the veto
that met the Patman bill two months
ago, but If revised measure Is Of
fered as a rider to one of the must"
bills it will add to the problem fac.
ing administration leaders in trying
to complete the program of the ses-
sion, even though the new bonus move
did not finally succeed.
As the law stands. the adjusted
service certificates were to run for
20 years, starting in 1926, which makes
them due in 1s45. The Patman bill,
which President Roosevelt vetoed in
May, sought to bring about immedi-
ate cash payment of the 1945 face
value of the certificates. One of the
arguments in the Presidents veto mes
sage was that it meant paying ST.
SOC, 900, 900 more than the present
value of the certificates. 1t was esti-
mated that the vetoed bill called for
a total expenditure of $4,000, 000, 900.
The money to pay that bonus plan
was to have been obtained by issuing
new currency, with authority vested
in the Treasury to retire later some
of the outstanding Federal Reserve
notes and Federal Reserve bank notes.
Would Change Law.
The revised plan now being con-
sidered by some of the bonus advocates
would change the law by fixing Janu-
airy 2, 1918, as the date from which
to figure the 20-year period. One
supporter of the proposal explained
that date was midway between the
declaration of war and the armistice.
The fixing Of that date would make
the certificates due in January, 1898.
The proposed plan also would pro-
vide that if veteran wanted to cash
In his certificate before the date of
maturity, it would be discounted by
the amount of the unearned interest.
The present intention of those who
have the proposal in mind is to pro-
vide the funds by directing the PreSi-
dent to issue Treasury notes under
the authority contained in the Thomas
monetary amendment to the farm
relief act Of May, 1893. That amend
ment gave the President optional
power to take various means of ex-
banding credit. One Of the alterna-
tives was to issue up to $4,000, COG, 900
in currency, to be retired at the rate
of per cent annually. That is the
provision of the 1888 law the bonus
advocates are proposing to invoke if
they make another effcrt to get action
at this session.
Thomas Considered Plan.
Although the latest proposal would
eliminate unearned interest when
y,
it brings the date Of maturity much
nearer than existing law.
After the Patman bill had been
vetoed, the House voted TO override by
322 to 80. In the Senate. however.
the bonus advocates we're unable to
muster the required two-thirds and
the President wss sustained, the vote
being 81 to 40.
Shortly after the failure of that
bill, Senator Thomas, Democrat, Of
Oklahoma drafted a measure along
the general lines Of The proposal now
being discussed, but it has not been
made known who will offer the re-
vised plan If it is finally decided to
the question.