The Kansas bonanza

Inestimable benefits accrued to the nation because of the foresight of American Legionnaire Harry Colmery 58 years ago.

Considerable emphasis recently was placed upon how the 1944 U.S. Serviceman’s Readjustment Act, the fabled GI Bill of Rights, made a massive impact on America’s educational scene. Such attention was fully justified.

Somewhat overlooked, however, was the major role that loan guarantees for homes, farms and businesses played in building and enhancing the nation’s economy for many years after World War II ended in 1945. Military service veterans were able to get government backing for innumerable real estate ventures that created jobs, heightened tax valuations and helped many Americans prosper and benefit. Some still shake their heads when told that many a GI loan had only a 4 percent to 4.5 percent interest rate as the nation began to build and rebuild.

And after its auspicious start in the 1940s, the GI Bill concept has figured prominently in many lives ever since, right up to today. That first GI Bill provided six benefits:

l Education and training.

l Loan guarantees for homes, farms and businesses.

l Unemployment pay of $20 a week for 52 weeks, the 52-20 Club, while jobs were sought by veterans.

l Job-finding assistance.

l Top priority for building materials for Veterans Administration hospitals.

l Military reviews of dishonorable discharges (a requirement of participation in GI Bill programs was a proper discharge).

The original cost of the program, spearheaded by Topeka resident Harry Colmery of the American Legion, was a paltry  by today’s standards  $14.5 billion. Millions might have flooded the labor market instead of opting for education. That reduced joblessness during the uncertain demobilization period. Then when the vocational-training and college-educated people did enter the labor market, most were better prepared to contribute to the support of their families and society. That, of course, is when the loan guarantee program kicked in for those seeking to start homes and build for various occupational sites.

It is estimated that the original $14.5 billion spent for the GI Bill has had at least a 20-1 return in 10 years, well over $250 billion in payoffs. Some still contend the act that was designed and pushed so hard by Colmery is the finest single piece of legislation in American history. Colmery had a lot of opposition; Congress already had considered and turned down more than 600 bills concerning veterans. Although President Franklin Roosevelt eventually signed the measure, he wasn’t an early supporter.

The bill was carried over to the Korean conflict at a cost of $4.5 billion and produced outstanding results. Then came the post-Korean-Vietnam era GI Bill. There have been additional major adaptations to meet today’s needs for service people.

Along with the 7.8 million World War II veterans who had education and training under the GI Bill, there have been 2.4 million Korean War veterans and 8.2 million Post-Korean and Vietnam Era veterans and active duty personnel similarly included.

But shifting again from the training and education, consider this staggering statistic that has done so much for the American economy: From 1944 when the original GI Bill was born, through December 2000, about 16.2 million VA home loan guarantees were issued with a total value of about $665 billion. All those figures have risen since, of course.

The Kansas-inspired GI Bill has played an inestimable role in the welfare and prosperity of America. Our state has every right to be proud of the role one of its dedicated citizens played in laying the groundwork for such a bonanza.