Evening star., 1936-01-13
Bonus
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protection for their families and them
selves, or, If they desire the cash, they
have only to present them for re-
demption and the cash will be imme-
diately paid to them.
"In offering such q settlement to
this controversial problem Of long
standing, we feel that We have pro-
vided q method whereby the interest
of the veterans who have desired to
hold their certificates for the benefit
of their families, will be fully pro-
tected and the opportunity given to
those who desire cash to get what
they want.
May Keep Bonds.
"It Is our thought that great num-
Der of veterans will hold the bonds
rather than cash them in, as the in
vestment provided is an especially
attractive one. Bonds of the United
States paying 3-per cent interest
rate are selling at an appreciable
premium and were these bonds ne
gotiable they would unquestionably
sell considerably above par, but we
have purposely made them non-ne-
| gotiable SO that only the veterans TO
whom they are issued may enjoy the
extraordinary privileges granted, and
in order that no third parties may
reap any gains or benefits because OF
the adoption Of the bond method OF
making settlement.
"The bill differs from the House
bill in that 1t provides that no de-
duction shall be made on account Of
any Indebtedness of the veteran tc
the United States except on account
of lien against the adjusted COM
pensation certificate.
"At the same time, to the extent that
the bonds are held by the veterans
it will, in my opinion, make unneces.
sary any additional public financing
by the Treasury. 1t is the belief that
under this method of payment, it viii
not be necessary to provide at thh
session for any additional taxes"
Senator Harrison said the new bill
represents the labor of many of u
who have been striving to reconcile
the differences and attain legislation
that would be fair to the ex-servict
men, and at the same time safeguard
the interest of the Government" HI
said that particularly active with hin
in this matter has been Senators
Byrnes, Clark, Steiwer and Robinson.
Bonds in $50 MuItiples.
The bill provides that the bonds
shall be registered in the name OF
the veterans and, shall be issued in
denominations of, $50 or multiple,
thereof, having q total face value ur
to the highest multiple of $50 in the
amount certified as due the veteran
The difference in the amount certi-
fed as due the veteran and the face
amount of the bond so issued is to
be paid the veteran by the Secretary
of the Treasury out Of the fund
created by section sos of the World
War adjusted compensation act as
amended.
The bill provides that the bonds
shall be dated June Is and shall
mature June IS, 1945. The bonds
are to be redeemable at the option
of the veteran at any time at such
places, including post offices. as the
Secretary of the Treasury may desig-
nate.
| AS the bonds are to be dated Junt
IS, 1896, it appeared that the veterans
probably would not be able to cash
them under the proposed law until
that date. It has been explained that
great deal of preliminary work mus
be done before the Government will
be in position to issue these bond.
to the veterans.
Interest Payments In 1897.
The interest on each bond, the bill
says, shall accrue at the rate of 3
per cent a year from June IS to the
date of the payment of the principal
of the bond and will be paid there
with. It is provided, however, that
no interest will be paid on any bono
redeemed prior to June IS, 1887. The
Secretary of the Treasury is author
lied to promulgate regulations tc
carry out the provisions Of the bill
as they relate to the issuance Of the
bonds.
The bill makes the adjusted service
certificates fund available for pay
ments authorized by this act. 1t also
| authorizes the appropriation of such
sums as may be necessary to carry out
the act.
A statement printed at the conclu-
sion of the bill gives estimates as OF
June Is. 1886. as follows:
Maturity value Of outstanding GER
tificates, $3,456, ,000, 900; interests tc
be forgiven, 1868 ,0oo, 900; total, $3,-
719, 900, 900; value of the adjusted
service certificate fund, 81 ,482, ,000, 600,
additional amount required to pay
the bonus, $2,237, ,o0o, 900; amount due
veterans in bonds under this bill
$l,S36, ,213950; amount due veterans
in cash, $87,786 ,050; amount due
United States Government life In
surance fund, $507, 100000; amount
| due the banks for loans on adjusted
compensation certificates. 0,000, 900
Total of the last items, $2,4s1 ,000, 600
The bill provides that in case oi
loans made to veterans on bonus Ger
tificates by the banks, the banks may
present the notes and certificates tc
the administrator Of veterans affairs
for payment to the banks for theii
claims for the amount Of unpaid
principal and unpaid interest.
Committee Is Discharged.
The House, which last week passed
| the bonus payment bill backed By
veterans organizations. went through
the motions today Of discharging thu
Ways and Means Committee Of tht
| pntrnan ctirrency.expension payment