The Bonus After the 1932 Elections

Report Outline
American Legion Demand for Immediate Bonus Payment
Adjusted Service Certificate Law of 1924
The Bonus Struggle in Congress, 1931–1932
The Soldiers' Bonus in the 1932 Campaign
Disbursements for Veterans Since Close of the War
Special Focus

American Legion Demand for Immediate Bonus Payment

Lines for Renewal of the bonus battle were formed in mid-September, 1932, when the American Legion in national convention at Portland, Oregon, reversed the stand it had taken in 1931 and adopted, by the overwhelming vote of 1,167 to 109, a resolution demanding immediate payment of the 1945 matured value of veterans' adjusted service certificates. In a statement issued at the White House the day before the Legion acted, President Hoover reiterated his opposition to the proposal and declared that in his judgment its enactment would be “a deadly blow at the welfare of the nation.” Governor Roosevelt made no comment. His position with respect to present bonus demands remains undisclosed, although he said last April that he did not “see how, as a matter of practical sense, a government running behind $2,000,000,000 annually can consider the anticipation of bonus payments until it has a balanced budget, not only on paper but with a surplus of cash in the treasury.”

The Patman (D., Texas) bill for immediate payment of the full amount of veterans' adjusted service certificates was passed by the House of Representatives, June 15, 1932, by a vote of 211 to 176, but was defeated in the Senate two days later by a vote of 62 to 18. The Congress which will be called upon to consider this question again next winter will be the same Congress which acted upon it last June, since members elected this November will not take their seats until December, 1933, unless called in special session after March 4.

Sponsors of the Patman bill presented it not only as a relief measure for veterans but as a means of stimulating economic recovery. Payment of the bonus, amounting to about $2,400,000,000, was to be made by issuance of new currency in that amount. It was contended that this large addition to the volume of outstanding currency would raise the general price level and lead to a widespread buying movement. Opponents of the plan branded it as economically unsound and expressed fears that its inflationary features would produce lack of confidence in the dollar, increase hoarding, start wholesale gold withdrawals, and drive the country off the gold standard.