The Pittsburgh Press (November 12, 1946)
Background of news –
Veterans’ bonus
By Kendrick Lee
Bonuses for veterans of World War II will be proposed in new bills to be introduced at the opening of the 80th Congress in January.
Adoption or rejection of bonus legislation by the new Congress will depend in large measure upon the general level of economic activity during the next two years. A sharp post-war recession would generate pressure for immediate action by Congress; continued full employment might postpone passage of a bonus bill until well after the 1948 presidential election.
Eventual approval of bonus legislation by Congress appears generally to be accepted as a foregone conclusion. In the past, Congress has shown little resistance to bonus proposals by veterans’ organizations. However, the first World War I bonus bill was vetoed by President Harding in 1922, and again by President Coolidge m 1924.
A hill to liberalize its loan provisions was vetoed by President Hoover in 1931, and bills for immediate payment of the bonus were vetoed by President Roosevelt in 1935 and again in 1936.
Each of these bills ultimately was passed over the veto. In view of this record, President Truman may decide to sign a bonus bill for World War II veterans, if sent to him during the next two years. As senator, he voted to override both of Mr. Roosevelt’s bonus vetoes.
Bills introduced early
The first World War II bonus bill was introduced in December 1943 – 20 months before the close of the war – by Rep. Brooks (D-Louisiana). It proposed immediate authorization of bonus payments up to a maximum of $1,500.
Three months later, on March 6, 1944, nine representatives and two senators joined in sponsoring g substitute bill which proposed the costliest bonus payment ever suggested in Congress. This bill called for adjusted service pay credits of $3 a day to each veteran for service in the United States, and $4 a day for overseas duty. Payments under the bill would have ranged up to a maximum of $5,000. It was backed by five veterans’ organizations, including the Veterans of Foreign Wars, and the Disabled American Veterans.
The American Legion, which spearheaded the World War I bonus drive, has not yet come out for or against a bonus for veterans of World War II. The American Veterans of World War II is expected to adopt a bonus resolution at its annual convention, November 21-24, at St. Louis. The American Veterans Committee is the only organization of ex-servicemen that has voted down a bonus proposal to date.
Debt much bigger now
The main arguments on each side of the forthcoming bonus controversy will be essentially the same as those put forward in the World War I bonus fight, but there will be differences of emphasis and difference of detail.
One of the important differences between the present period and the years after World War I is the 10-to-1 difference in the size of the national debt. The peak of the debt after World War I was $26,600,000,000; the present debt is $263,500,000,000.
Furthermore. the number of men eligible for a post-World War II bonus would approach fourteen million; the number of men who received adjusted service certificates after World War I was only a little over 3,500,000.
The basic rates of the World War I bonus were $1 a day for home service and $1.25 a day for service overseas. The corresponding rates of the jointly-sponsored bill for veterans of World War II are $3 and $4, but there has been some suggestion of rates as high as $4 a day for duty at home and $5 a day for duty overseas. The cost of adjusting veterans’ compensation at the latter rates has been estimated as high as 126 billion dollars.