WAR BONUS

New Zealand Herald, Volume LXXIII, Issue 22446, 16 June 1936, Page 9

WAR BONUS

VAST SUM PAID AMERICAN VETERANS "BABY BONDS" ISSUE PRECAUTIONS BY POLICE By Telegraph—Press Association— Copyright (Received June 15, 6.15 p.m.) WASHINGTON, June 14 It was the biggest pay-day in the Government's history to-day, when postmen were delivering "baby bonds" aggregating 1,650,000,000 dollars to 3,000,000 Great War veterans. Celebrations by veterans' associations all over the country mark the greatest event of its kind in the history of the United States. The police are ready for the swift prosecution of confidence men and other "get-rich-quick" tale-spinners. Armed National Guardsmen are mobilised for any emergency in the huge deliveries. A wave of buying and consequent benefit to trade is expected.

The veterans' war bonuses were paid to soldiers in the form of certificates maturing in 1945. Ever since the war the veterans have bean demanding the right to discount the certificates for cal>h, a demand that has been consistently supported by Congress. Presidents Harding, Coolidge, and Hoover successively vetoed the schemes approved by the legislature, and Mr. Roosevelt did the same in May, 1935, and took the unprecedented step of going m person to Congress to support his veto, lhe House of Representatives immediately voted to override the veto by a large majority, and the President narrowly escaped a rebuff in the Senate, where his supporters, although in a minority, were numerous enough to_ prevent the requisite majority from being obtained. Some degree of finality was reached on January 20 over the question, when the Senate voted by 74 to 16 for the issue of non-negotiable "baby-bonds. These would be of 50-dollar denomination, and would be given to the soldiers instead of the compensation certificates which they held. The bonds could be cashed immediately, but could not be transferred. It was estimated that, it would require about 2,500,000,000 dollars for the issue, although it was hoped that not more than 1,000,000,000 would be immediately cashed.