Y 989, unemployment and self-employment allowances. Includes allowances to World War II veterans to assist in their readjustment to civilian employment. Similar allowances paid to Korean conflict and Vietnam veterans by the Department of Labor are excluded.

Y 990, loan guaranty. Includes payments on defaulted loans, and the cost of property and securities acquired. The amounts are gross and do not reflect the cost of the loan guaranty program to the Government. Refunds and recoveries on claims paid returned to the general fund and deposits to the loan guaranty revolving fund amounted to $2.9 billion through June 30, 1970. Other losses of the program are subject to further recovery from the liquidation of securities and repayments by borrowers.

Y 991, direct loans. Includes direct mortgage loans and advances to veterans, interest expenses on capital borrowed from the U.S. Treasury, and other expenses (excluding Veterans Administration administrative expenses) of the direct loan program. Expenditures are gross and do not reflect the cost of this program to the Government. Through June 30, 1970, receipts paid into the direct loan fund amounted to $3.1 billion, bringing net expenditures to $108 million. This will be further reduced, as the program matures, by payments of interest and principal by borrowers.

Y 992, miscellaneous benefit payments. Includes statutory burial allowances; expenditures not classified as to purpose from the compensation and pensions appropriation; automobiles and other conveyances for disabled veterans; specially adapted homes for paraplegic veterans; payments to participants in the yellow fever experiments; military and naval family allowances of World War I veterans; marine and seamen's insurance in World War I; adjusted service compensation (World War I bonus); General Post Fund expenditures; withdrawals of the personal funds of patients held by the Veterans Administration as banker and funds due incompetent beneficiaries; soldiers' and sailors' civil relief; and the vocational rehabilitation revolving fund. These expenditures are gross with the exceptions of soldiers' and sailors' civil relief and the vocational rehabilitation revolving fund, which are on a net basis.

Y 993, medical, hospital, and domiciliary services. Figures include expenditures for hospital nursing bed care, and domiciliary care, out-patient medical and dental treatment, medical research, and related costs; appropriations to the Canteen Service Revolving Fund; and grants to the Republic of the Philippines for medical care and treatment of veterans. Beginning 1921, the data are estimated. Prior to July 1, 1879, the fiscal year of the National Home for Disabled Volunteer Soldiers ended on various dates. For this period, the data have been proportionately adjusted by the Veterans Administration to reflect expenditures for years ending June 30.

Y 994, hospital and domiciliary facilities. These data include expenditures for the construction and equipping of hospitals and domiciliary facilities, and major alterations, improvements, and repairs thereof; grants to the Republic of the Philippines for the construction and equipping of a hospital; grants for construction of State extended care facilities; expenditures from funds allotted under the National Recovery Act of 1933 and Public Works Administration Act of 1938; and $436,623,692 transferred to the Department of the Army, Corps of Engineers, for the construction of hospitals.

Y 995, administration and other benefits. Includes expenses for vocational counseling of veterans, beneficiary travel for certain programs, reporting allowances paid schools for certifying the attendance of veteran trainees, private laws for relief, and all administrative salaries and expenses.

Y 996-997, expenditures from general and special fund appropriations. Series Y 996 represents expenditures from appropriations made by the Congress to finance the general and ordinary operations of the Veterans Administration and predecessor agencies. The figures differ from amounts shown under total expenditures (series

Y 984) after 1917 in that they do not include expenditures from trust funds, working funds, and deposit funds. Transfers from appropriations to insurance trust funds (series Y 997) are included in the figures for series Y 996.

Y 998-1009. Veterans pensions and compensation—number of veterans and expenditure, by type, 1866-1970.

Source: U.S. Veterans Administration, records. Data were compiled from various annual reports of the Administrator of Veterans Affairs, and of the Commissioner of Pensions.

The basic distinction between pension and compensation is that pension is a benefit payable for total and permanent disability or death which is not attributable to the veteran's military service. Compensation is payable for the disability or death resulting from injury or disease incurred in, or aggravated by, military service. In the series relating to death benefits, the number of veterans refers to the number of deceased veterans whose dependents are receiving benefits, rather than to the number of dependents in receipt of such benefits; the data on expenditures refer to the amount received by these dependents. In the disability cases, the data refer to the number of veterans, and the amount of money paid to these veterans in the form of retirement pay administered by the Veterans Administration or its predecessor agencies.

For 1866-1890, separate data are not available for the death and disability series. Likewise, information is not available which would permit a separation of the data on the pensions and compensation earned for military service prior to 1904. As a result, all data on veterans of the Spanish-American and earlier wars have been arbitrarily included in the pension series.

The compensation data refer (with the qualifications as noted above for the series on deaths) to the number of, or expenditures paid to, veterans of the Regular Establishment, World War I, World War II, the Korean conflict, and Vietnam. Data on these veterans were first included in 1904, 1918, 1942, 1951, and 1965, respectively. Y 1010-1027. Patients receiving hospital or domiciliary care authorized by Veterans Administration, 1921-1970.

Source: U.S. Veterans Administration, Annual Report of the Administrator of Veterans Affairs, various issues, and unpublished data. These data do not in all cases agree with information previously published in some of the earlier annual reports of the Veterans Administration. Revisions were made to adjust some of the data for earlier years for comparability with current data.

The data for admissions is by type of patient; through 1960 neurological patients were included with neuropsychiatric, thereafter with general. Tuberculosis patients are included with general.

The data for all veterans receiving hospital care (series Y 1014) and veterans with service-connected disabilities (series Y 1019) are identical prior to 1925. The act which made Veterans Administration hospital care available to veterans with nonservice-connected disability was passed in 1924, and it was not until 1925 that such patients were admitted to Veterans Administration hospitals.

Data for veterans receiving hospital care for service-connected disabilities (series Y 1019-1022) exclude those veterans with serviceconnected disabilities who are being treated for nonservice-connected ailments.

Series Y 1018 shows the number of nonveteran patients in Veterans Administration hospitals. This group of patients is made up for the most part of persons still in the military service who have not yet attained veteran status, and cases admitted to Veterans Administration hospitals for humanitarian reasons.

Domiciliary care was provided by the National Homes for Disabled Volunteer Soldiers through July 30, 1930; later, it was provided by other agencies. The number of veterans in State homes receiving domiciliary care (series Y 1025) is shown because the Veterans Administration contributes to the support of veterans cared for in approved State homes who would be eligible for admission to Veterans Administration domiciliaries.

Y 1028-1031. Government life insurance administered by Veterans Administration-number of policies, income received, and benefits paid, 1921-1970.

Source: U.S. Veterans Administration, Annual Report of the Administrator of Veterans Affairs, various issues, and unpublished data. The U.S. Government, through the Veterans Administration, operates two life insurance programs for veterans and servicemen. The insurance program which had its origin in World War I is known as U.S. Government Life Insurance (USGLI); and the program which had its inception in 1940 is called National Service Life Insurance (NSLI). The administrative expenses of these programs are borne by the U.S. Government. All USGLI is participating (that is, entitled to dividends from any earnings). This program was closed to new issues effective April 25, 1951. All NSLI issued prior to April 25, 1951, with some minor exceptions, is participating and entitled to dividends. This type of insurance also was closed to new issues in 1951. Veterans separated from military service without a serviceconnected disability on or after April 25, 1951, and before January 1, 1957, could apply for nonparticipating NSLI on the 5-year nonconvertible term plan only. Conversion to permanent plans was made available in 1959. This insurance is known as Veterans Special Life Insurance.

Veterans separated with a service-connected disability on or after April 25, 1951, are eligible to apply, within one year after serviceconnection is established, for permanent plan or term policies. This insurance is known as service-disabled veterans insurance.

and nonservice disabilities so serious that they could not obtain commercial insurance at the highest rates. This insurance is known as Veterans Reopened Insurance.

The maximum amount of all Government insurance for veterans is $10,000 on one life. Excluded from these series are data on the Servicemen's Indemnity program, which was in effect from June 27, 1950, to January 1, 1957. This program provided free life insurance in the amount of $10,000 (less any USGLI or NSLI in force) while in military service and for 120 days thereafter.

Income received (series Y 1030) includes: (1) Premiums received from policy holders for insurance and disability income benefits, including premiums waived because of disability, (2) advances from Congressional appropriations to the service-disabled veterans insurance fund, (3) interest on investments in U.S. Treasury Certificates of Indebtedness and in U.S. Treasury notes, (4) interest on policy loans and on premiums paid in arrears, (5) dividends credited to insureds or deposited to accumulate at interest, and (6) reimbursements from the U.S. Government as the Government's contribution for death and disability claims due to the extra hazards of military or naval service, for gratuitous insurance, and for other obligations. Benefits paid (series Y 1031) include: (1) The actual cash payments to beneficiaries of deceased insureds, (2) cash payments to insureds under the total and permanent disability provisions of USGLI policies, (3) monthly income payments under total disability income provisions of USGLI and NSLI policies issued before April 25, 1951, (4) premiums waived for total disability, (5) cash surrender values paid on contracts surrendered, (6) payments on matured endowment policies, (7) dividends paid and dividends previously credited or left on deposit and later withdrawn, (8) interest added on dividend credits and deposits, (9) adjustments in policy liens, receivables, and overpayments waived, (10) transfers to U.S. Government in the Veterans Special Life Insurance program, and (11) administrative costs in the Veterans Reopened Insurance program.

1 Based on expenditures of Departments of the Army and Navy to World War I and major national security expenditures thereafter. Usually the figures begin with the year the war began but in all cases they extend one year beyond the end of the actual conflict.

To World War I, estimates are based on Veterans Administration data. For World War I, World War II, and Korean conflict, estimates are those of the 1956 report of the President's Commission on Veterans' Pensions plus 25 percent (the increase in the average value of benefits since the Commission made its report). 3 Estimates based on assumption that war would end by June 30, 1970 (except for veterans' benefit costs to 1970). Occupation costs not included. Background data: Original cost: Bil. dol.

a. Major national security expenditures for Vietnam conflict,
1965-70 fiscal years...

b. Cost of supporting American personnel in South Vietnam,
1954-64, at $25,000 per man per year..

Total..

108.5

1.5

110.0