Evening star., 1936-02-09

veterans will not apply for cash." he
said, "since there are 100000 Of them
who have never applied for certlfi-
Gates. There is a small group who
will not apply for their money. The
present law has permitted loans up
to so per cent. A lot of the veterans
have borrowed on their certificates,
but on certificates to the face value
of $490 100000 there have been no
loans. Veteran leaders argue that the
fellows who have not borrowed prob
ably will cash their bonds. 1t is pure
ly speculative to say how many will
cash their bonds.
The question in point is how much
money will be needed. 1t is Gus
tomary to say that the bonus amounts
to approximately $2,000,000 900. That
is quite erroneous. We (the United
States Government) have been build
ing up a fund called the adjusted
service fund. That fund now amounts
to around 81, 100000, 900. Out of that
sum about $l,250,00O,O00 has been
loaned to veterans. In other words,
that much has already been paid. In
addition, money belonging to the fund
has been invested in bonds which are
now on hand. These bonds now
amount to $3.50 100000. They can be
converted into immediate cash. Be-
cause they are already in existence as
bonds, they don't add to the public
debt. Bonds outstanding are carried
In the public debit. 1t is estimated
that the amount required for cash
payment is S87,000000; S60.000,000
must be disbursed to banks on bonds
for which the banks have loaned cash.
Adding these two figures We get $751;
100000 which will be required in cash.
That is still an arbitrary figure, re-
member. The Veterans Administra-
ton will take that S147.000,0O0 from
the quarter of a billion (S254 900 .000)
still in the adjusted service compen-
sation fund There will then be
$107,O00,000 left in the fund.
THE aggregate of bonds to be de-
livered to veterans is $1,836 ,000. .000-
the figure we call 'oughly $4,000, ,000.-
000-but some part of them will want
cash. The net requirement, therefore,
Is l,730, ,000, ,000-the total net require
ment of bonds in cash. How much
cash will be required in reasonably
short time may be arbitrarily stated
as $490.O00,00o; that is. assuming 10
per cent of the veterans will keep their
bonds or some part of them. 1t is
difficult to make any dogmatic cal
culationS in advance, of course. How
many will want cash is an arbitrary
number. but they will probably be
less than 80 per cent. The average
age of the veterans is 43 years. In
the average case. If the veteran has
$500 coming to him, he won't need
but 500 or 5000 1t seems reasonable,
therefore, to estimate that there will
be $630,000.000 left in bonds (S490,-
100000 plus the 10 per cent who keep
their bonds. Take that $500, ,000, 900
off the $1,730.0 100000 and it leaves
$l,100, 100000 that will have to be met
by new financing. With one and a
half billion dollars in the adjusted
service fund, you see the problem is
not really so great.
THE current Treasury report shows
the public debt to be $30,522, ,00e, 900.
The two billion which the bonus rep
sesents was never in that public debt.
In the schedule of appropriations
70 hquidate the bonus debt by 1945,
the Veterans Bureau figures show
Sl60,O00,000 as the 1897 budget.
Therefore, you exceed the budget only
by the amount of cash needed over
sl60,0O0, ,000."