Average monthly payments to this World War nonservice-connected group during the fiscal year 1937 approximated $29.20 to veterans and $36.50 to the dependents of each deceased veteran. Applying these rates to the expected number of beneficiaries during the fiscal years 1938 and 1939, it is determined, respectively, that expenditures will obtain in the amounts of $18,658,975 and $21,819,695. This represents an increase of $3,160,720 for 1939 when compared with 1938.

The attention of the committee is now invited to charts Nos. 2, 3, 4, 5, 6, 7, and 8 in the books before you under the title "Pensions", which contain a detailed summary, by months, of the estimated disbursements for the fiscal years 1938 and 1939, showing the amount of payments and the number of beneficiaries by wars. It will be noted that the totals on Chart No. 8 are in the amounts of $403,948,000 for 1938 and 413,709,000 for 1939, as opposed to the estimates in the Budget of $400,955,000 and $410,000,000, respectively. Since the increase is almost entirely due to expected increased claims and payments under Public, No. 304, Seventy-fifth Congress, and as experience has shown that these claims have not in the past promptly materialized, estimated expenditures for 1938 have been reduced to the amount of the appropriation, namely $400,955,000, and the appropriation requested for the fiscal year 1939 has been reduced to the even figure of $410,000,000. These charts are instructive, and depending upon your judgment concerning the volume of the record, they may or may not be inserted.

Mr. WOODRUM. Your next item is as follows:

"For military and naval insurance accruing during the fiscal year for
which this appropriation is made or in prior fiscal years, $40,055,000.”
Your appropriation for this purpose for the current year is
$88,752,000.

General HINES. The amount included in the Budget for 1939 under
"Military and naval insurance," which is the next item of appropria-
tion, is $40,055,000. This appropriation covers payments arising
from contracts with World War veterans for what was known as war
risk insurance. The payments now being made are those to veterans
who suffered a permanent and total diasbility as the result of war
service or during the post-war period in which they carried this type
of insurance; payments to beneficiaries of soldiers who died in service
or during the post-war period in which this type of insurance was in
force; and payments to the Government life insurance trust fund to
meet obligations sustained by that fund incident to the extra hazards
of military or naval service of persons so engaged while protected by
Government life policies.

There is a definite limit to the number of beneficiaries who may
qualify for payments under this appropriation as benefits of this kind
are payable only to veterans who were permanently and totally dis-
abled or the dependents of veterans who died during the comparatively
short period of time that this form of insurance was in force. The
largest class of expenditures under this appropriation is for death
awards. Inasmuch as the provisions of the act authorized the pay-
ment for such awards over a period of 240 months, it is estimated that