the losses which always follow deflation and the return to normal conditions. Leaving out of the equation every vestige of sentiment, every element of gratitude, and applying only the rigid rule of mathematical calculation, we can not deny that, by allowing the man who fought for his country, who placed his life in pawn for his country, the increase in his compensation provided by this bill, we are still giving him for his service, with all its risks and hardships, a compensation much below that which the common laborer in the United States received during his absence. Can a grateful country do less than this? It might be asked right here why we should not bring the soldier's compensation fully up to the average wage of the laborer who remained at home. The answer is three-fold: First. The State of the Treasury; the debts that are staring us in the face demand extraordinary caution at this time. Second: The American appreciation for heroic service will not die with this Congress nor with the ensuing scores of years. Though often forced to delay, the American people have never failed ultimately to do full justice to the men who fought their battles. Third. The World War veterans are satisfied with this effort at this time to equalize compensation. PRECEDENTS. The precedents for legislation of this character are the rule and not the exception. In the closing days of the Civil War large bounties were paid soldiers. After its close land warrants were given them. Like donations have been given in all our previous wars. All the allied Governments in this war have recognized this just claim of their war-worn veterans. The following table will show the action of other governments in granting additional compensation to their veterans: This bill proposes to meet the national obligation to these veterans by presenting to them for their choice any one of four separate and distinct plans of remuneration. Briefly stated, these plans are: 1. Adjusted service pay, or $1 per day for each day's home service and $1.25 for each day's overseas service during the war, in excess of 60 days, in the military or naval forces of the United States between April 5, 1917, and July 1, 1919, said sum, if more than $500, to be paid in 10 equal quarterly installments, and if less than $500 in quarterly installments of $50, conditioned that the home-service pay shall not exceed $500 and the overseas-service pay shall not exceed $625 to any one person. 2. Adjusted service certificate plan, which increases the adjusted pay service 40 per cent, allows 4 per cent per annum, compound interest, for 20 years, the whole amount payable upon the death of the recipient as insurance, and against which the applicant may borrow 90 per cent of the total amount due, including interest, from the third to the fifth year, inclusive, and 80 per cent due at any time between the fifth and twentieth 3. Vocational-training aid, which provides for the payment of $1.75 per day for each day's service by the veteran in a course of Vocational training, the total payment not to exceed 140 per cent of adjusted service pay. 4. Farm or home aid, the amount expended by the Government for such assistance to be 40 per cent higher than the adjusted service pay. Conceding the justice of this proposal, the duty to meet it, if it can be met without injustice to the public, conclusively follows. What will it cost and how will that cost be distributed throughout the ensuing years under the terms of the bill? It is not difficult to arrive at the minimum cost, the amount that would be paid by the Government if everyone in the military and naval service entitled to it should avail himself of the provisions of Title II, the adjusted service pay plan, generally described as the cash plan, and the maximum cost, if every one entitled thereto should apply for the adjusted service certificate, generally referred to as the certificate plan. These two plans represent the minimum and the maximum costs. The application for the benefits under cither or both the other two plans, vocational training aid and farm or home aid, will to the extent of such applications add somewhat to the minimum cost and diminish to the same extent the maximum. Because of the very limited area of public lands suitable for entry, and because of the opportunity provided for borrowing 90 per cent of the amount due under the certificate plan which one contemplating the building of a home may draw, comparatively few will avail themselves of the farm of home aid plan, and undoubtedly very few will apply for vocational training aid. But whatever may be the number of applications under these two titles, such number will not diminish the minimum cost nor add to the maximum cost. It is evident that an accurate computation of the cash to the United States of any or all of these plans must be based on the knowledge of just how many will make application for the benefits of each plan. In the case of the certificate plan we must, in addition, know what number will borrow on their certificates each year and the percentage of their borrowings. These numbers must necessarily be conjectural. But while we are unable to give definite figures as to cost because of lack of this knowledge, we can give both the minimum and the maximum costs, and between these two extremes we believe we can approximate very closely what the total cost will be and what appropriation must be made each year to meet the obligation incurred. As plan No. 1, the cash plan, fixes the amount which must be paid per day for each day's service, and plans numbered 3 and 4, mentioned above, provide other ways in which the sums found due may be expended for the applicants, and plan No. 2 adds 40 per cent to the adjusted pay of No. 1 plan, and 43 per cent compound interest for 20 years, it follows that plans No. 1 and No. 2 only of these plans need to be considered, representing as they do the minimum and maximum costs. The actual cost to the country will, of course, be found somewhere between this minimum and maximum, depending upon the number who will apply for the benefits of each plan. Here we must enter the field of conjecture. But guiding our estimates by observation and knowledge of human nature we can reasonably approximate the number who will apply for the cash plan and the number who will apply for the certificate plan, and as the number who will apply for the other two plans must necessarily be very small, it will affect but little the general result. PROPORTIONATE NUMBER APPLYING UNDER EACH PLAN. Assuming that men will use ordinary judgment and be guided by what clearly appears to be to their best interest, we will find little difficulty in determining which plan will be sought by the vast majority. If an applicant, who would be entitled to receive $400 under the cash plan, which would be paid to him in quarterly installments of $50 and spread over two years, finds by examination of the certificate plan that he can, immediately after the expiration of these two years, have a credit of $600, against which he can immediately draw $540 and still retain an insurance on his life for 20 years, without the payment of a single cent, can there be any doubt that he would accept the latter proposition? It must also be remembered that the average age of the recipients in 1921 will be in the neighborhood of 28 years, the time of life at which they either have homes or are contemplating such and who will, therefore, give greater weight to ultimate benefits than to immediate gratification. The question is not presented to the applicant as to whether he will accept $400 in a single immediate cash payment or $540 at the expiration of two years, but whether he will accept $400 in $50 installments spread over two years or $540 at the end of two years, with an additional credit of life insurance, fully paid, for 20 years. It would seem therefore that only the inconsiderate or hardpressed would exercise his option in favor of the cash plan when he fully understands the advantage of the certificate plan. And before the veteran exercises his judgment he will have been fully informed as to just what each proposition means to him. We believe we are more than conservative in saying that at least 80 per cent of the veterans will take the certificate plan, carrying, as it does, a very greatly added sum and paid-up life insurance, with the right to borrow against it. But as all may not agree on the division we shall include in this report several tables, as follows: Table I, showing total cost if every veteran should accept the cash plan, together with the amount to be paid each year. Table II, showing total cost if every veteran should accept the certificate plan, with no borrowings, together with the estimated amount to be paid each year due to deaths. Table III, showing total cost if 80 per cent of the veterans should accept the certificate plan and 20 per cent the cash plan, together with cost for each year, after making allowance for 333 per cent of borrowings and payment of full amount assured on account of deaths. Table IV, showing total cost if 663 per cent should apply for the certificate plan and 333 per cent for the cash plan, making allowance for deaths and estimating the borrowings at 333 per cent. Table V, showing total cost if 50 per cent should apply for the certificate plan and 50 per cent for the cash plan, making allowance for deaths and estimating the borrowings at 33 per cent. TABLE I.-Total cost if every veteran should accept the cash plan, together with the annual cost. NOTE.-The above table is based upon the average cash payment, and while the total shown is approximately correct, certain payments, owing to length of service, will extend beyond the average, into the year 1926. There are 136,000 veterans in this class and the total payments, included above, of about $3,000,000 will run into 1926. TABLE II.-Total cost if every veteran should accept the certificate plan, with no borrowings, together with annual payments. st TABLE II.-Total cost if every veteran should accept the certificate plan, with no borrowings, together with annual payments-Continued. e 8 $16,566, 103.00 16, 676, 168.00 16, 834, 660.00 16, 991, 394.00 17, 195, 675.00 17,395, 553.00 17, 638, 577.00 17,944, 998.00 18, 250, 538.00 18, 607, 149.00 19,054, 453.00 19, 549, 305.00 20, 133, 970.00 20, 829, 581.00 1,568, 923,744.00 1,920, 389, 465.00 $28,730, 648.00 28,929, 179.00 29, 195, 295.00 29,478, 307.00 29,827,496.00 30, 169, 645.00 30, 601, 907.00 31,067, 961.00 31, 653, 698.00 32, 284, 490.00 33,063, 125.00 33, 910, 754.00 34,925, 936.00 36, 132, 609.00 2,721, 356, 287.00 3,330, 975, 442.00 $45, 296, 751.00 45, 605, 347.00 46,029, 955.00 46, 469, 701.00 47,023, 171.00 47, 565, 198.00 48, 240, 484.00 49, 012, 959.00 49,904, 236.00 50, 891, 639.00 52, 117, 578.00 53,460, 059.00 55,059, 906.00 56, 962, 190.00 4, 290, 280, 031.00 5,251,364, 907.00 TABLE III. Total cost if 80 per cent of the veterans should take the cash payment plan and 20 per cent the certificate plan; assuming that one-third of those entitled borrow from the Government on their certificates, with a repayment of the loans in 10 equal annual installments, covering principal and interest. 1 $28,038,130 principal due after Jan. 1, 1943. This amount is deducted from the payments on maturity of certificates. $35, 404, 944 4,546, 688 $217,302, 544 155, 456, 774 94, 108, 665 35,702, 240 70, 228, 416 35,847, 155 59, 441, 691 35, 998, 832 96, 245, 547 36, 189, 400 82, 248, 394 36, 484, 279 60,042, 001 46,919, 373 33,918, 052 49, 293, 077 40, 221, 725 82, 848, 698 44, 047, 925 26, 244, 533 45,569,752 20, 493, 42413, 404, 185, 920 |