The Bonus Act was enacted in May, 1924, in a period of good economic times six years after the end of The Great War (WWI). Congress had passed it several times in previous years, and two Presidents had vetoed it. In May 1924, President Coolidge also vetoed it, saying that the Fed Govt had no authority to take tax money from all the citizens and hand it to a relatively small group, even if they were war veterans. Only their regular service pay and bonuses as members of the military, were constitutionally authorized payments, and they already had those.
BONUS IS UNJUST COOLIDGE WRITES IN VETO MESSAGE ? The Cornell Daily Sun 16 May 1924 ? The Cornell Daily Sun
Coolidge also pointed out that the government didn't have the money now, was still paying off huge (for the times) debts from the War, and that there was no reason to saddle future governments with the burden if it could not be paid for now, unless it was an extreme emergency (which, in those prosperous times, it was not). He also mentioned that, at the time, even veterans opposed the Bonus Act.
Congress overrode Coolidge's veto and enated the Bonus Act anyway.
World War Adjusted Compensation Act - Wikipedia, the free encyclopedia
Years later, the Great Depression struck, and people holding Bonus Act certificates petitioned the government to pay them off now instead of ten-plus years later. But the govt had even less money in 1932 than it had in 1924, and refused.
For some reason the certificates, which said they would be paid off twenty years later (around 1945 or later), were NOT made transferrable. If they had been, the veterans holding them could have sold them for a lesser amount to get the cash now, to an investor who would hold them the remainder of the period and cash them for full value later. But this option was not open to the certificate holders.
Using tanks and troops against the "Bonus Marchers" was unconscionable, of course, and a vile act by President Hoover and Douglas MacArthur.