Everything about Bonus Bill totally explained
Two major
bills of the
United States Congress have been called the
Bonus Bill. The first, in 1817, proposed spending proceeds from the
Second Bank of the United States on an east-west
road. Later, this term was applied to welfare bills for
World War I veterans opposed by
Franklin Roosevelt in his first two Presidential terms, eventually overcoming his
presidential veto.
Bonus Bill of 1817
The Bonus Bill of
1817 was a
bill introduced by
John Calhoun to provide
United States highways linking The East and South to The West using the earnings
Bonus from the
Second Bank of the United States. It was a part of the
American System, which was proposed by
Henry Clay, a colleague of Calhoun. Calhoun argued for it using general welfare and post roads clauses. The bill was strongly opposed in
New England, because people there feared that providing the means for settlers to travel would drain their population and create competing states in the area obtained in the
Louisiana Purchase. Though he approved of the goals, President
James Madison vetoed the bill as
unconstitutional under
strict constructionist ideals.
Bonus Bills of 1930s
Veterans of the First World War in the United States had been promised a cash bonus payable in 1945. Beginning in 1931, veterans organized to get full payment immediately. Congressman
Wright Patman and Senator
Huey Long were the leading proponents. Presidents
Herbert Hoover and
Franklin Delano Roosevelt strongly opposed the payment. 45,000 veterans calling themselves the Bonus Expeditionary Force or
Bonus Army marched on Washington in 1932 and were driven out by the Army. Congress passed several bonus bills that were vetoed and finally overcame Roosevelt's veto in 1936 (
Adjusted Compensation Payment Act, 1936,
January 27,
1936, ch. 32, 49 Stat. 1099). The Treasury distributed $1.5 billion in cash to the 4 million veterans.
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