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The Bonus Army

Unemployment during the 1930s led veterans to protest for cash-payment of certificates that had been promised to them.

Learning Objective

  • Discuss the demands of the Bonus Army marchers and the outcome of their campaign


Key Points

    • Under the World War Adjusted Compensation Act of 1924, Veterans received bonuses in the form of certificates that they could not redeem until 1945.
    • The Bonus Army, led by former sergeant Walter Waters, was an assembly of over 40,000 marchers, composed of WWI veterans, families, and others, who marched on Washington in 1932 to demand an immediate cash-payment redemption of service certificates.
    • Hoover and Republicans, however, opposed cashing in the certificates because the government would be forced to levy higher taxes to cover the cost of the payout, thereby slowing any potential for recovery or growth.
    • When the Senate failed to pass a Bonus Bill that would have allowed veterans to receive their bonus pay earlier, violence broke out between protesters and police. Hoover ordered the eviction of the Bonus Army from their Hooverville camp, which greatly damaged his re-election campaign.
    • The Bonus army continued to protest under FDR, and Roosevelt tried to negotiate a settlement by offering them positions in the newly created Civilian Conservation Corps (CCC).
    • In 1936, a Democratic dominated Congress passed the Adjusted Compensation Payment Act in 1936, authorizing the payment of $2 million in WWI bonuses over FDR's veto.

Terms

  • CCC

    The Civilian Conservation Corps (CCC) was a public work relief program that operated from 1933 to 1942 in the United States for unemployed, unmarried men from relief families, ages 17–23. A part of the New Deal of President Franklin D. Roosevelt, it provided unskilled manual labor jobs related to the conservation and development of natural resources in rural lands owned by federal, state and local governments.

  • Walter Waters

    Walter W. Waters (1898—1959) of Portland, Oregon, was a former Army Sergeant in the United States Army who, in May 1932, led the 20,000-strong army of World War I veterans called the Bonus Army on their march to Washington, D.C. The veterans were seeking immediate payment of service certificates, essentially additional pay, promised to them by Congress in the World War Adjusted Compensation Act of 1924 and scheduled for payment in 1945.

  • World War Adjusted Compensation Act

    The World War Adjusted Compensation Act, or Bonus Act, was a United States federal law passed on May 19, 1924, that granted a benefit to veterans of American military service in World War I.


Full Text

The Bonus Army was the popular name of an assemblage of some 43,000 marchers—including 17,000 World War I veterans, their families, and affiliated groups—who gathered in Washington, D.C., in the spring and summer of 1932 to demand immediate cash-payment redemption of their service certificates. Led by Walter W. Waters, a former Army sergeant, the organizers referred to it as the Bonus Expeditionary Force to echo the name of World War I's American Expeditionary Force, while the media called it the Bonus March.

Many of the war veterans had been out of work since the beginning of the Great Depression. The World War Adjusted Compensation Act of 1924 had awarded them bonuses in the form of certificates they could not redeem until 1945. Each service certificate, issued to a qualified veteran soldier, bore a face value equal to the soldier's promised payment plus compound interest. The principal demand of the Bonus Army was the immediate cash payment of their certificates.

Although there was Congressional support for the immediate redemption of the military service certificates, President Hoover and Republican congressmen opposed such action. They reasoned that the government would have to increase taxes to cover the costs of the payout, and thus any potential recovery would be slowed.

The Veterans of Foreign Wars pressed the federal government to allow the early redemption of military service certificates. In January 1932, a march of 25,000 unemployed Pennsylvanians, dubbed "Cox's Army," had marched on Washington, D.C, the largest demonstration to date in the nation's capital, setting a precedent for future marches by the unemployed. On June 15, the House of Representatives passed the Wright Patman Bonus Bill, which would have moved forward the date for World War I veterans to receive their cash bonus, however, the Senate defeated the Bill.

Most of the Bonus Army camped in a Hooverville on the Anacostia Flats, a swampy, muddy area across the Anacostia River from the federal core of Washington D.C. The camps, built from materials scavenged from a nearby rubbish dump, were tightly controlled by the veterans who laid out streets, built sanitation facilities, and held daily parades. To live in the camps, veterans were required to register and prove they had been honorably discharged. Retired Marine Corps Major General Smedley Butler, one of the most popular military figures of the time, visited the Bonus Army's camp to back the effort and encourage them.

On July 28, U.S. Attorney General William D. Mitchell ordered the veterans to be removed from all government property. Washington police met with resistance, shots were fired, and two veterans were wounded and later died. Veterans were also shot dead at other locations during the demonstration . President Herbert Hoover then ordered the army to clear the veterans' campsite. Army Chief of Staff, General Douglas MacArthur, commanded the infantry and cavalry supported by six tanks. The Bonus Army marchers, with their wives and children, were driven out, and their shelters and belongings burned.

Bonus Army Conflict

Bonus Army marchers (left) confront the police.

The Bonus Army incident proved disastrous for Hoover's chances at re-election. He lost the 1932 election in a landslide to Franklin D. Roosevelt. A second, smaller Bonus March in 1933 at the start of the Roosevelt Administration, was defused in May with an offer of jobs for the Civilian Conservation Corps at Fort Hunt, Virginia, which most of the group accepted. Those who chose not to work for the CCC by the May 22 deadline were given transportation home. In 1936, Congress overrode President Franklin D. Roosevelt's veto and paid the veterans their bonus years early.

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