Did the government ever pay the bonuses to the World War 1 veterans?

Answer 1

The Bonus Act was replaced by service certificates awarded to veterans under the World War Adjusted Compensation Act of 1924 with bonds issued by the Treasury Department in denominations of $50. The bonds paid interest at an annual rate of 3 percent from June 15, 1936, to June 15, 1945, higher than rates available to savings accounts. Amounts less than $50 were paid immediately. The bonds could not be sold, but the Treasury would redeem them for cash at any time after June 15, 1936. Most veterans redeemed their bonds promptly. The Treasury issued bonds worth $1.745 billion initially. Between June 1935 and June 1936, 80% of the bonds issued had been redeemed. The Treasury paid more than $800 million in cash in the last 2 weeks of 1936 and almost $700 million more in the next year. The cash payments constituted an efficient economic stimulus, since the program required little government administration, the monies were likely to be spent without delay, and the entire process did not require the long lead time of a public works program.[5]