VETERANS' BONUS

New Zealand Herald, Volume LXXII, Issue 22117, 24 May 1935, Page 11

VETERANS' BONUS

UNITED STATES BILL ' \ CASH PAYMENT PLAN MR. ROOSEVELT'S VETO LOWER HOUSE OVER-RIDES By Telegraph—Press Association— Copyright (Received May 23, 5.15 p.m.) "WASHINGTON, May 22 President Roosevelt vetoed the Patman Soldiers' Bonus Bill calling for the payment of 2,200,000,000 dollars in notes to be printed. He issued a warning that enactment of the measure would invite an ultimate reckoning in uncontrollable prices and destruction of the value of savings. Mr. Roosevelt also declared that full payment of the bonus was not due until 1945, and that the present bill directs the payment of 1,600,000,000 dollars more than was contemplated in the 1924 Bonus Act. Flouting the President's warning, the House of Representatives by 322 votes to 98 over-rode the veto. The issue is now before the Senate, where the Government is counting on a margin of a few votes to sustain the President's objections.

In perhaps the most dramatic appearance of a President in Congress since the late Mr. Woodrow Wilson asked for a declaration of war against Germany, Mr. Roosevelt, before a joint session of the House and Senate read his veto message of the bill. He spoke to packed galleries, while thousands of people crowded the Capitol grounds although they had not the slightest chance there of hearing his message, which was broadcast throughout the country. Cool Reception of the Addresu In arguing against cash payments to the veterans Mr. Roosevelt employed, in substance, the same points as every President since the war. Also he had to argue against currency inflation declaring that the issue of new money would not bring the inflation of commodity prices desired, but would easily lead to uncontrolled inflation, destroy the value of savings and investments and reduce fixed incomes, including the pensions of disabled veterans.

The President said the Government already had expended 7,800,000,000 dollars in benefits for the veterans which would be increased to 13,000,000,000 dollars by 1945. Congress somewhat coolly received the President's address and, in less time than it required for him to return to White House, the House of Representatives had been reconvened and had over-ridden the veto. There was no discussion of the points the President had raised and no debate on the issues involved. Senate's Leisurely .Debate It required a bare 25 minutes to set the machinery for the roll-call and scores of Democrats who had " ridden to Congress on Mr. Roosevelt's coattails " voted for the bounty, and incidentally for inflation of the currency to the extent of two billion odd dollars' worth of "green-backs." In the Senate, which proceeded to consider the President's message in more leisurely fashion, Government leaders are making a determined stand to sustain the veto. After checking and rechecking their forces they said they had a one or two vote margin.

On the other hand the bonus advocates claim to be confident of winning on the vote which probably will be taken to-mQrrow. The debate- is restricted to 30 minutes for each member who wishes to speak.

American returned soldiers are politically one of the most powerfully organised classes in the United States. Their principal organisations are the American Legion and the Veterans of Foreign Wars. Between them they have gained enormous benefits from the American taxpayer by way of pensions, grants and loans. The bills for war service already paid—although many of the beneficiaries never proceeded overseas—have reached staggering sums, but the soldiers still press for more and their demands are commonly called the " veterans' racket."

Of recent years their principal demand has been for the immediate cashing of the adjusted compensation certificates, popularly called bonuses, which do not mature until 1945. Measures to give effect to this demand have more than once been passed by Congress and then vetoed by the President of the day. An attempt to overawe President Hoover by a march of veterans on Washington and the pitching of a camp under the windows of White House came to nothing, the veterans finally being dispersed by a show of force.

In spite of past defeats, however, the bonus question was revived in Congress at the end of March.' The House of Representatives was faced with two measures providing for the cash payment of the bonusfes at a cost of over 2,000,000.000 dollars or about £400,000,000. It selected the Patman Bill which proposed to provide the cash by printing new United States notes and proceeded to pass it by a vote of 318 to 90, although it was warned that the President's veto would be applied. That warning was made good after the Senate had also approved the measure. The House has now voted to over-ride the President's veto and the bill is before the Senate, where it will be necessary to gain a two-thirds majority if the veto is to bo set aside. That majority could scarcely be obtained in ordinary circumstances but there is a strong inflationary sentiment in the Senate which sees in the bill an opportunity to bring about the rise in prices which Mr. Roosevelt's monetary policy has failed to effect in the desired measure. When in the past the Senate refused to over-ride the Presidential veto, the cashing of the bonus was a' simple issue, but the currency motive introduces a new and uncertain factor. It is notable, however, that when the House over-rode the veto a year ago the Senate finally sustained the President.