Pensacola 3668 Pensions Navy Yard is now located the Penbacola Naval Air Station. The historic Plaza Fer- dinand, where the transfer of Florida took place, is the civic center of the city. Pen- sacola has an extensive foreign trade, the chief items of shipment beinjr cotton, lum- ber, naval stores, hides, fertilizers, and iron and steel articles. Founded in 1559 by the Spaniards under Luna, it fell before the French arms in 1719 and by the Treaty of Paris (1763) passed with West Florida into the hands of the French. In 1783 the terri- tory was restored to Spain by treaty. Al- though the United States claimed Pensacola by the Louisiana Purchase of 1803, Spain consented to its occupation by the English in the War of 1812. It was taken by General Jackson in 3814, and again in 1818, and was formally ceded by Spain the following year; P- 37449- Pensacola Bay, an inlet of the Gulf of Mexico on the west coast of Florida. It affords an excellent harbor. Pensions, pecuniary allowances payable at regularly recurring periods, usually in rec- ognition of past services. The first national pension law was enacted by the Continental Congress on Aug. 26, 1776, giving half pay for life to any officer, soldier, or sailor who had lost a limb in an engagement, or had been otherwise incapacitated for earning a living. The principle of pension for service, without regard to disabilities incurred in line of duty, was introduced in 1818. By act of July 4, 1836, widows of Revolutionary sol- diers were pensioned. Pensions for the regu- lar military establishment were first granted in 1790, but the fundamental law for regular army pensions up to 1886 was that of 1802, which declared that officers and privates dis- abled by wounds or otherwise while in the line of duty should be placed on the pension list. In 1802, also, a grant of half pay was made to the widows or children of com- missioned officers dying in consequence of wounds. The first important legislation re- lating to Civil War pensions was the act of July 14, 1862, by which pensions ranging from $8 to $30 per month were granted for disabilities arising from service in the Union Army or Navy after March 4, 1861. The law of July 4, 1864, introduced the principle of fixed rates for specific disabilities. In 1866 the provisions of the act of 1862 and sup- plementary acts were extended to all pen- sions granted under previous acts except Rev- olutionary pensions. Since the dose of the Civil War the ten- dency of pension legislation has been in the direction of even greater liberality. Accord- ing to the National Defence Act of 1916, offi- cers and enlisted men of the National Guard drafted into the service of the United States in time of war are entitled to all the bene- fits of the pension laws existing at the time of their service. Further provision was made for soldiers and sailors in the Great War in the War Risk Insurance Act of Oct. 6, 1917 designed to do away with the evils of the pension system. World War compensations were handled along with insurance and dis- ability compensation by the Veterans' Bu- reau. A system of loans to Veterans on Ad- justed Service Certificates was arranged. Pay- ments differ from pensions in not being paid at stated intervals. They were not, however, loans; as they did not have to be paid back. In 1931, over President Hoover's veto, the amount of loan obtainable was increased to 50 per cent of the face value of the Certifi- cates instead of ->5 per cent as in 1924. The time limit for making application for a cer- tificate was extended to Jan, 2, 1935. These payments are in effect cash bonuses, dispensed at will of Congress before maturity of the certificate—which was previously given in the form of a so-ycar insurance policy. See BONUS. In 1930 a pension bill was passed in which the rates stand at $12 a month minimum and $40 a month maximum. Veterans will be deprived of compensation for diseases due to their wilful misconduct. Veterans of suffi- cient means to pay an income tax are ex- cluded from the benefits of the act. In ad- dition to pensions granted under the general laws, a large number of claimants rejected by the regularly constituted authorities have been pensioned by special act of Congress. Span- ish War veterans come under the general measures applicable to soldiers of the Civil War. In 1930 a bill which increased the compensation of Spanish-American War vet- erans by $11,000,000 was passed over the veto of President Hoover* By executive or- der of July 21, 1930 the Veterans' Bureau, Bureau of Pensions and the National Home for Disabled Volunteer Soldiers were con- solidated. The combined organization is the Veterans' Administration. The total disburse- ments to June 30, 1940, exclusive of the amount disbursed under Civil Service and Canal Zone Retirement acts, was $23,999,- ,282,000, The largest items are Army and