Fortified with the experience obtained immediately after the first
World War, the American Legion, in the so-called G. I. Bill, considered
not only what would be beneficial to the veterans of World War II, but also what would be helpful to the nation. [italics added by me, Betsy Devine]
In considering this legislation, it was estimated that before the close
of the war some 15 million men and women would have been members of our
armed forces, the majority of them having been recruited through
Selective Service. It was also considered that this is the youngest
Army and Navy that our country has ever formed, and that millions of
these men and women were under the age of twenty-one; that many more
had never held a job of any sort. It was also believed that a large
segment of our defense industries, such as the manufacture of airplanes
and accessories, and the building of ships could not be continued after
the war, and that when demobilization took place many millions of
civilian war workers would also be demobilized and would of necessity
be seeking employment.
Back Into National Economy
The Legion felt that the citizens of this country would agree that the
veterans of this war were entitled to all the consideration which the
country could give to them, but the Committee which wrote the bill also
felt that a way must be devised by which returning veterans could be
channeled into the civilian economy of the nation with the least
disruption to the orderly flow of commerce and civilian production, so
that the influx of millions of people looking for employment would not
cause serious unemployment, or at least that such a condition could be
minimized. It was felt that opportunities should be provided to
veterans either to resume their interrupted educations or to be able to
find their niches in the communities of this country.
That is why the Legion believes that, while this bill is of great
benefit to veterans of World War II, it is also of great benefit to the
country and that in protecting the economy of the country, the passage
of this legislation may be of even greater service to our citizens than
to the veterans themselves.
Carrying out the loan provisions of this legislation places a heavy
obligation upon the bankers of this country. That obligation is to
protect the veterans from unwise and improvident investments, whether
it be a home, farm, or business loan. It is the intention of the
Veterans’ Administration that the contemplated terms of payment should
bear a ‘proper relationship to the veterans present and anticipated
income and expenses, and in the case of farm loans that the veteran’s
record should indicate some suitability or experience for agricultural
pursuits.
The Banker’s Problem
When men return from the serv:ice, they will naturally want “to get
going.” They will be enthusiastic and that very enthusiasm may warp
their judgment. Many of them are totally inexperienced in business
affairs and will be obliged to depend on you of the banking profession
for counsel and advice. You may often be called upon to advise against
a loan, either because the property is over-priced or because the
veteran is so inexperienced in agriculture or in business that his
prospects of success appear to be dubious. We, of the American Legion,
believe that it is your duty under such circumstances to explain to the
veteran that he should not either purchase real estate or engage in an
enterprise where he may lose not only his guaranty, but his equity.
He may not appreciate your refusal to make a loan at that particular
time, but we must look to the future, because we do not want the
bankers of this country, ten years from now, to be publicized in the
newspapers as taking veterans’ homes away from them when in many cases
it will be the insistence of the veterans themselves which may have
been the initial source of the trouble.
The standards of the banking profession are very high. We know that
banking will not tolerate the approval of loans just because the
government guaranty might cover potential losses. If the loan
provisions of this bill are administered with an overwhelming desire to
protect the veterans, we feel that these men will have a stake in their
community, will be a distinct asset to their cities and towns, and will
form a stable portion of our population. [In closing Mr. Devine
promised the aid of the Legion in helping veterans to understand that
the banks must aid veterans to avoid improvident use of the guaranties
authorized by the bill.]
******
These remarks by Maurice F. Devine, chairman,
National Legislative Committee of the American Legion, were made to a
meeting of US bankers held January 15, 1945, at the Federal Reserve
Bank. I found them in the January 20, 1945 issue of a journal called United States Investor, while going through an old box of my grandfather’s photographs and papers.
According to family legend, my grandfather and the American Legion
played a big role in creating the Servicemen’s Readjustment Act, more
popularly known as the GI Bill of Rights.