What are service certificates?

Services certificates are a type of bond issued by the United States government to American veterans from the First World War. The certificates were designed as a bonus payment to veterans that make up the difference between military rewards and what veterans would earn in the private sector if they did not serve. The 20 -year service issued in 1925 was mature in 1945, but the US Congress allowed redemption 10 years earlier because of economic problems with great depression and political reasons.

Before issuing a 1925 service certificate certificates, the veterans were a tradition in the US to accept for lost opportunities in higher property services. For conflicts fought by the US armies to the Spanish-American War, the bonus was land and money. There was no bonus for the Spanish-American war and the veterans of the First World War initially received a $ 60 (USD) bonus. This was a politically unpopular move that caused the creation of the US legion, an organization for veterans; and finallyIt has been solved with the creation of a service certificate congress.

Bonus included in service certificates was $ 1 USD per day, with another 25 cents per day for overseas service. Domestic services bonuses were limited to $ 500, $ 600 for foreign services. The certificates could be redeemed after 20 years or in 1945, unless they were $ 50 or below, in which case they were immediately paid.

The

Congress issued about $ 3.6 billion USD $ 3.6 billion in the nominal value of service certificates funded by 20 annual payments of $ 112 million plus interest. The initial conditions of service certificates allowed the holder to borrow up to 25 percent of the nominal value of the certificate. This amount was raised in 1931 to 50 percent due to extended Joblessness during depression.

in 1932 protested against economic hardships and required immediate redemption of service certificates, about 17,000 veterans, birthsThe members and supporters marched on Washington, D.C., and founded the city of the tent. Demonstrators were called the bonus army. People, their tents and property were forcibly removed by the US Army.

Until 1933, the marching back still demanded an immediate full redemption of the service certificate. Many veterans were attracted to join the government's work program working on the new highway in Florida. When the hurricane hit this project, which killed hundreds of veterans, a public scream led to the Congress rewritten the presidential veto and redeemed the service certificates in the nominal value 10 years earlier.