The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1936-02-27
BONUS MONEY :
is EXPECTED TO
HELP BUSINESS
Increased Buying Powers OF War
Veterans Should Help
Materially

New York, Feb. 23-Although
the probable stimulating influence
of the bonus payment on business
has undoubtedly been overestimat-
ed in some quarters, it can hardly
be doubted that such an influence
will appear, states the Guaranty
Trust company Of New York in the
current issue of The Guaranty Sur
vey, its monthly review of business
and financial conditions in the Unit
ed States and abroad, published to-
day.
eft is expected that a large ma
jority of the veterans will immedi-
atedly present their bonds for re-
demption," The Survey continues.
Several million individuals will
thus come into possession Of ready
cash; and the cash will be raised by
the issue of government securities,
most of which probably will be TAX
end up by the banks and other
financial institutions with the ex-
cess funds at their disposal. The
purchasing power bestowed upon
the veterans, therefore, will not
represent an equivalent amount of
purchasing power withdrawn from
other sources. To large extent, it
will represent newly created pur-
chasing power-a net addition to
the current volume of demand for
commodities, services, securities,
and other available objects of ex-
penditure.
Heavy Burden
''The stimulating effect which the
spending of the bonus money will
undoubtedly have on trade and in
dustry over period of months does
not blind many business men to the
fact that the longer-term influence
of the payment can only be regard
ed as unfortunate from the ecoT1orl-
icpo;ne @ vissv. Not only will fshe
government be called upon to meet
another heavy financial burden at
a time when it is already under
more than sufficient pressure, but
new impetus will be given to the
activities of groups with supposed
1oi1 Tho
Unless estimates based on a
question: aire sent out by the
American Legion to it's members
last month are grossly in error, it
seems like that the construction in
dustries will be among the princi-
pal branches of business to benefit
by the bonus payments, and that
the real estate market, especially
the market for individual dwellings,
will be stimulated in some degree.
The automobile industry is also
likely to feel the effects of veterans
expenditures. The surprisingly
large figure for repayment of pre-
vious debts is impossible to anaylze,
since funds received by creditors
may be used for Vulnerable pur-
poses, almost all of which, however,
are likely to result in some degree
of stimulation to one branch Of
business or another.
Possible Future Demands
Equally important. if not more
so, from the business standpoint are
the implications of the payment
with respect to future demands on
the treasury for the benefit of spe-
cial groups. For many years there
has been evident an increasing ten
dency to regard the government as
the guardian of the economic inter.
ests of individuals. This attitude, Of
course, has long existed with regard
to war veterans. In recent years it
has become increasingly manifest
in the case of the agrarian popula-
ton. Since the beginning of the de-
preston, the unemployed have been
added to the list of public words.
The result has been a progressive
development of a system that has
been described as government by
blocs,' in which legislators tend to
fall under the domination of organ
lied groups carrying on more or
less continuous agitation for pecun-
larry.