The President said:
Although I have been greatly opposed to the passage of the bonus legislation in its provision for loans from the Treasury to people not in need, now that it is law we propose to facilitate the working of it in every way possible.
Inasmuch as the physical task of making loans to 3,500,000 veterans, or even half that number, who might apply, will require many months, even with the most intensive organization, I have requested General Hines to give complete priority to applications from veterans who are in need, and have asked him to set up some machinery for the certification of these cases, especially giving regard to the certification of the veterans service organizations and the various relief organizations dealing with unemployment. The recent survey of the larger cities shows, in the opinion of the Administrator of Veterans' Affairs, that about 6½ of the total number of veterans in industrial centers are now receiving support from the local unemployment and other relief committees. This bill will relieve some of the burden now being carried by those committees, but as the amount possible for so many veterans to borrow under the bill is so small, it is urgently necessary that the local committees shall continue their service to many veterans.
I wish to compliment the veterans' service organizations for their cooperation in undertaking a campaign amongst all veterans, urging them not to take advantage of the loan provisions except in cases of absolute necessity. I understand they are placing it on the ground of assistance to Federal Government in minimizing the amount of money we shall be called upon to borrow, and upon the fact that loans upon the bonus certificates exhaust the protection of the veterans' families under the endowment insurance features of the certificates.
Taking General Hines' survey of the number of veterans being assisted by local committees as a basis, it would appear that if all loans were confined to need, the drain on the Treasury may be limited to 10% of the potential liability created by the law.