Two years after the Continental Army was demobilized in 1781, hundreds of Pennsylvania war veterans marched on Philadelphia demanding back pay while Congress was in session. The Congress fled to Princeton, and, within two weeks, the U.S. Army expelled the veterans. In 1788, Congress passed legislation to cover pensions and bonuses. In 1836, the benefit was extended to widows.

At First, The Bonuses Included Land

Prior to World War I, the bonus was land and money, although that became an issue, particularly in Tennessee, where close to 40% of arable land was given to veterans; the lack of arable land led to a cash-only system. The veterans of the Spanish-American war did not receive a bonus, and after World War I, the bonus had shrunk considerably. The American Legion, which was created in 1919, led the political movement for an additional bonus.

Some WWI Veterans Were Going To Have To Wait 20 Years

Although President Coolidge vetoed a bill granting bonuses to World War I veterans, Congress overrode him, passing the World War Adjusted Compensation Act in 1924. If the amount was $50 or less, the money was paid immediately, while other amounts were issued as Certificates of Service, maturing in 20 years. The money was to come out of a trust fund.

Starting in the spring of 1932, the Bonus Army, which is sometimes called the Bonus Expeditionary Force, converged on Washington. Once this group of 43,000 descended on D.C., approximately 10,000 moved into the Anacostia Flats, creating shelters out of materials taken from nearby junk piles. Some also lived in partially demolished buildings on Pennsylvania Avenue. The veterans controlled the camps, laying out streets and setting up sanitation. Occupants had to register and prove they had been honorably discharged. Their leader, Walter W. Waters, maintained order and removed agitators. Pelham D. Glassford, the Superintendent of the D.C. police helped to supply them with food and other necessities.

The House then passed a bill authorizing immediate payout of the bonuses in mid-June, but the Senate rejected the bill, after which most of the veterans returned home. Between 2,000 and 10,000 remained, engaging in protests which created a turbulent, restless atmosphere. After local authorities asked President Hoover to intervene, troops led by Brig. Gen. Perry L. Miles, accompanied by Gen. Douglas MacArthur used tanks and tear gas to drive out the demonstrators. At first, the members of the Bonus Army thought that the troops were there to cheer them on, but the reality of the situation hit quickly when the cavalry charged and the infantry entered the camps to evict the veterans, their families, and the camp followers. Although Hoover ordered the assault stopped, MacArthur ignored orders and began a new attack, specifically against the large Anacostia camp, claiming that the Bonus Army was there to overthrow the government. During the attack, the shacks were set on fire. In the process, one veteran was shot and killed, and other veterans and policemen were wounded. The protestors left after Congress appropriated $100,000 to send them home. However, the situation was not resolved, and it has been cited as one of the reasons that Roosevelt defeated Hoover in the 1932 election. 

The Second Bonus Army

In May 1933, a second Bonus Army arrived and was greeted by Eleanor Roosevelt and presidential assistant Louis Howe. This second Bonus Army was received quite differently; the administration set up a special camp for them at Fort Hunt, Virginia, and had forty field kitchens that served three meals daily, bus transportation to and from the capital, and military bands to entertain. Once again, the Bonus Army did not achieve its objectives, as legislation was not passed at that point, however, some veterans did find work. On May 11, 1933, Roosevelt signed an executive order to allow 25,000 veterans to enroll in the Civilian Conservation Corps, despite not meeting the normal requirements that applicants be under the age of 25 and unmarried. In 1936, Congress passed the Adjusted Compensation Payment Act to authorize the immediate payment of the World War I bonuses. The Bonus Army had an important long-lasting effect: it laid the groundwork for the 1944 G.I. Bill of Rights.