The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1944-05-18
News ~
Behind,
THENEs9IH!k|;Il9!I
Benefits for Returning Soldiers
By PAUL. ALLON

Congress is moving to meet the
problem Of the returning soldier
with at least one eye centered on
the coming elections.
The legislators have, with var
ious steps, now headed toward a
distinct line of procedure-the dis
charge bonus of 500 to $500, a
bigger one to be enacted later,
the American Legion CT. Bill,
the WAVES, WACS, etc., to share
equally in loans up to $1,000 to buy
homes, farms, BUSINESS (no in
terest first year, 3 percent there
after), a year of schooling with
the government paying up to $500
tuition and $50 to SIS a month
for living expenses, special us.
employment service to look for
jobs, and SO on.
The inspiring notion is that
nothing is too good for the soldiers;
indeed, this valid conviction is
shared by most people to such an
extent that they would be glad
to let returning soldiers run the
country, as they should, having
saved it.
But quietly, without any addi-
tional expenditure and apparent
ly without the congressional ten
dency to overdo it for political
effect, Mr.. Jesse Jones, Recon-
struction Finance corporation, has
opened new realistic avenue OF
help. Business seers like Babson
wisely say the future of this
country depends on small business,
the type that can run by a
man and wife, who preferably
should live on the premises SO as
to cut down expenses of operation
and the high cost of help.
Real Economic Impetus
This kind, of business obviously
adds to the structure of the coun.
try and is progressive, because
it brings in taxes to the govern
ment and furnishes real economic
impetus.
Also the problem now and for
the immediate postwar period is
initiation caused by the great sums
of cash in the hands of the people
with no goods to buy. The bonuses
would add to this initiation stream.
The ideal time to pay the bonus
from an economic standpoint
would be several years hence
when the pent-up demand for
goods has been filled and a bust
ness decline is in prospect. The
bonus, therefore, adds to taxes
and economic difficulties, whereas
loans to start a new small business
would be a national medicine for
our difficulties.
Now Mr.. Jones has been making
loans for years that the banks
would not take and he not only
runs his FRC without net loss,
but with some profit to cover adj
ministrative expenditures. This is
proof enough that MIR. Jones is
smarter than the bankers.
His whole business career was
that of a borrower, generally try
ing to get money from banks and
apparently he operates not on
the basis of how much collateral
you have but on character of in
dividuals and their business his
average loan is only $33,000).
Soldiers Get Quick Response
So when Sgt. Carl w. Stomps
and Pvt. Col Kuthruff, fighting
abroad, recent wrote a note ask
ing postwar promise of loan to
finance a General Motors dealer
ship, they received the prompt
response:
"RFC will be glad to give favor
able consideration In any
reasonable amount"
Another veteran made applica-
ton for himself and wife for
$4,000 to open a restaurant in Palo
Alto, Calf. The local RFC agency
recommended declination because
the two had no working capital
except $1,000 and intended to put
the whole $1,000 in restaurant
equipment. Headquarters here
reversed the decision, made a two
year loan (the Bank of America
taking 10 percenD, insisting only
that the life insurance of the
soldier be pledged.
As you can see from this, there
are all kinds of lending and spend
ing; good or bad, produtive or
inflationary, destructive or con-
sthutive. While congress argues,
the RIG has proceeded with
loans for use and is already do
ing what congress proposes to do,
but in a sensible way to help the
veteran, cure initiation and make
more business.
If congress goes its way fully
and starts tossing money around
to veterans-even those who have
jobs lined up, or airs already fab
ulously wealth, just for the po-
litical effect of "doing something
for the veterans - the soldiers
themselves may soon find these
political bounties We're not really
to their own best interest as a
whole or the country's, which they
are to run.