them at that time in meeting the expenses necessarily incurred while they were seeking to reestablish themselves in business, or in farming, or in whatever occupation they had given up when they entered the service. There was, as you will recall, an appropriation for this purpose which amounted, as I recall it, to some two months' pay to each veteran, but the amount was small as compared to what was contemplated in the bills that were subsequently introduced. But the Congress did not see fit to adopt any of the bills that were introduced at that time and it was not until several years later when the need of a bonus had passed that the theory of adjusted compensation was adopted and finally took the form of the bill which became a law over the President's veto in 1924. The Ex-Service Men's Anti-Bonus League was organized by a group of ex-service men who were out of step with the policy adopted by the American Legion and the other ex-service men's organizations in exerting pressure on the Congress to enact these so-called bonus bills. Its members were perhaps idealists to the extent that they felt that their military service had been rendered from patriotic motives, that they had given this service voluntarily because of their sense of obligation to defend their country, and that when they enlisted none of them did so because they expected to receive adequate compensation in the form of money for the services rendered, but it was a time when idealism was rather predominant in this country and the American Legion itself when it was organized incorporated in the preamble to its constitution the following as one of its principles: "To inculcate a sense of individual obligation to the community, State, and Nation." It was the sense of individual obligation that appeared to this group to be inconsistent with the position which had then been adopted by the American Legion of participating in a campaign to force Congress to approve bonus legislation. Many of the members of the league were and continue to be members of the American Legion, but found that they were in a minority in that group and that their views on this subject were contrary to those being pushed by the organization. The league was therefore organized and in a short period of time there were established branches in 125 different communities throughout the United States. It took an active part in the campaign of 1923-24 and its representatives appeared before members of committees of the House and Senate in opposition to the enactment of the adjusted compensation bill. In doing so it antagonizd the American Legion and was bitterly attacked through the columns of the latter's weekly paper. After the bill was passed by the Congress over the President's veto, there was no further immediate occasion for the activities of the league, but it was felt that the time would inevitably arise when further demands would be made for additional bonus legislation and that, therefore, the league should continue as an inactive organization prepared at a moment's notice to enter the field again. That occasion has now arisen by reason of the action of the executive committee of the American Legion in disregarding the action of the national convention at Boston when the delegates there, after full consideration of the matter, tabled the resolution which favored payment up to 80 per cent of the face amount of the adjusted-service certificates. I have seen no explanation that has come from anyone in authority in the American Legion which has satisfactorily explained the inconsistency between the action of the national convention and the recent action of the executive committee, and I believe there are thousands of members of the Legion who, if their voices could be heard, would vote in opposition to the action of the execu tive committee. It is, of course, out of place at this time to argue that the bonus bill should never have been passed. That matter was settled when the President's veto was overriden; but it is of interest to recall that in his veto message the President foretold the coming of the present demand for cash payment. He said: "No one supposes the effort will stop here. Already suggestions are made for a cash bonus, in addition, to be paid at once. Such action, logically, would be encouraged if this bill became law." Now within 7 years, the situation which he foretold has come about, and with equal certainty the league feels that it may prophesy that if this bill is passed "no one supposes the effort will stop here." The argument for the adjusted-compensation certificate instead of the cash payment was two-fold: First, to save the country from an immediate increase of taxes; and, second. to give the veteran an assurance of help at a time in his life when he was most likely to need it, in the meantime securing his family against want in case of his death. These arguments made the passage of the bill possible seven years ago, for a bill which would have provided for a cash payment would, at that time, not have passed over the President's veto. So step by step the demands for cash payments of the ex-service men have progressed and if the present bill for cash retirement of the certificates is enacted there is nothing to prevent, within the cousre of time, a return to the pension system of the Civil War. This statement will be vigorously attacked by those who favor this legislation, but it is only necessary to think back a few years and contemplate what has already happened to realize that it is an inevitable step. It was only 14 years ago that the Secretary of the Treasury, speaking in relation to the war risk insurance act, said: "It ought to check any further attempts at service compensation legislation by enabling a man now to provide against impairment through old age, total disability, or death resulting from other causes, and to give all this protection to those kindred who may be dependent upon him and who do not share in the Government pension." The Ex-Service Men's Anti-Bonus League favors all legislation intended to benefit those who were disabled in the service. It feels that there is nothing that this country can afford to do that should not be done to rehabilitate them and to care for those who were wounded or who became disabled through their service in the war. It has felt and still feels that the abled-bodied soldier could not be and did not expect to be compensated in a monetary way for the losses which he had suffered; that such compensation was not properly a governmental function and that it merely meant additional taxes to the general public for the benefit of a particular class. The league feels that the same argument applies to-day against the cash payment of the certificates. Our minds are open to the possibility that a means may be found to help those veterans who are in actual need by permitting them to borrow additional amounts against their certificates. We realize that there is a practical difficulty in determining who are the needy and who are not. It seems to us significant that at the present time the number of loans outstanding is, according to General Hines, only slightly in excess of one-third of the total certificates in force, involving only about 22 per cent of the present loan value of the certificates. These figures seem to indicate that the agitation for the immediate cash retirement of the certificates is not an agitation inspired by the rank and file, but rather by a vociferous minority in the service organizations. We do not presume to foretell to your committee what the effect of passing any one of the several bills before the Congress would have on the economic conditions of the country. We are impressed, however, by the consideration that no measure of this kind can be passed without increasing the tax burden of the country and that this increased burden will have to be shared equally by the ex-service men with all others in the country. There is no measure now pending before the Congress, of which we are aware, that will exempt him from paying his portion of the money that will have to be found to pay off these certificates, nor of sharing in whatever economic depression may result, but as we have already stated, our opposition to the proposed legislation is based upon the conviction that the legislation as it was passed in 1924 should stand; that the service organizations accepted it and were at that time satisfied with it and should consequently now remain so, and that to open the door now for any substantial revision of the act would undoubtedly result in further and continuing demands until in the end this country will be confronted with the pension system with all the objections and evils that grew out of it during the years following the Civil War. Respectfully yours, KNOWLTON DURHAM, President. INDEX NAMES A Page American Bankers Association, statements in behalf of American Legion, statement in behalf of__. Alger, F. M., Detroit, Mich., letter from.... Andrew, Hon. A. Piatt, Representative from Massachusetts, statement of 148 337, 350 120 167 382 Army and Navy Union, statement in behalf of 431 Arnold, Hon. William W., Representative from Illinois, statement of 458 226 B Beard, Fred, Detroit, Mich., statement by. Benson, Philip A., Brooklyn, N. Y., representing the National Association 215 263 Bettelheim, Edwin S., jr., representing the Veterans of Foreign Wars, 128 Brand, Hon. Charles H., Representative from Georgia, statement of. 179 203 221 C Case, J. Herbert, Chairman Federal Reserve Bank of New York, statement 33 399 218 177 204 Connery, Hon. William P., Representative from Massachusetts, statement 143 Cooke, Thornton, Kansas City, Mo., representing the American Bankers 350 Coxey, Gen. Jacob S., sr., Massillon, Ohio, statement of 389 D Delaney, Frank H., Vice President First National Bank, St. Paul, Minn., 380 Disabled American Veterans, statement in behalf of 136 Dominick, Hon. Fred. D., Representative from South Carolina, state- 444 Duffield, E. D., Newark, N. J., president Prudential Life Insurance Co., 275 Durham, Knowlton, New York City, president Ex-Service Men's Anti- 490 E Edwards, Hon. Charles G., Representative from Georgia, statement by.. 272 490 493 F Ferris, Henry T., St. Louis, Mo., president Investment Bankers Associa- Page Fish, Hon. Hamilton, jr., Representative from New York, statement of 322 149 430- 461 Fulmer, Hon. H. P., Representative from South Carolina, statement of..._ 466 G George, Henry W., treasurer Metropolitan Life Insurance Co., New H Hall, Hon. Robert S., Representative from Mississippi, statement of...- 301 393 449 404 431 62, 86, 472 403: Hines, Brig. Gen. Frank T., administrator of veterans' affairs, state- Investment Bankers Association of America, statement in behalf of... 322: J Johnson, Hon. Luther A., Representative from Texas, statement of...- 468 K Kirby, Thomas, representing the Disabled American Veterans, statement 136 424 Kvale, Hon. Paul J., Representative from Minnesota, statement of.. L Levy, Fabian F., Philadelphia, Pa., statement of... Mc McCormack, Hon. John W., Representative from Massachusetts, state- McLeod, Hon. Clarence J., Representative from Michigan, statement of McSwain, Hon. John J., Representative from South Carolina, statement 438 151 176 145 271 468 457 M Mellon, Hon. Andrew W., Secretary of the Treasury, statement of....... 1 173 Mills, Hon. Ogden L., Undersecretary of the Treasury, statement of 1 213 N National Association of Mutual Savings Banks, statement in behalf of.. 263 321 North Eastern Ohio Convention of Veterans of all Wars, petition of___ 209 444 Page Oregon Bankers Association, telegram from.. Р Palmisano, Hon. Vincent L., Representative from Maryland, statement Patman, Hon. Wright, Representative from Texas, statement of R Rankin, Hon. John E., Representative from Mississippi, statement of__ 306 178 151 208 212 184 466 314 257 Reynolds, Arthur, chairman of board, Continental Illinois Bank & Trust Rich, Hon. Robert F., Representative from Pennsylvania, statement of.. 450 354 S Schafer, Hon. John C., Representative from Wisconsin, statement of... 447 232 365 Simpson, James M., Chicago, Ill., letter from 207 Stephenson, Rome C., South Bend, Ind., president American Bankers 337 Stevenson, Hon. William F., Representative from South Carolina, state- 30 T Taylor, John Thomas, representing the American Legion, statement of......- Van Antwerp, Eugene I., Detroit, Mich., statement of.. W Wagner, Ernest C., president Discount Corporation of New York, state- Whitley, Hon. James L., Representative from New York, statement of 239 223 129 307 Y Yon, Hon. Thomas Alva, Representative from Florida, statement of........ 36468-31-32 428 367 47 |