608 [98 N. E. 338]). It is manifest if an outright gift of public moneys in aid of ex-soldiers is a public purpose, that a loan to them would also be an expenditure of money for a public purpose.

The rule is stated in the recent case of People v. Westchester County Nat. Bank, supra, where the court of appeals in New York held that the statutes of that state providing for the sale of bonds and a payment of a bonus to soldiers who served in the World War was violative of certain provisions in the New York constitution, but also held that the payment of such bonus was a public purpose. In that connection the court made the following

statement:

"It is said that this act serves no such purpose. We think, however, that it does. In deciding whether the object for which taxation is imposed is for a public object the courts 'must be governed mainly by the course and usage of the government, the objects for which taxes have been customarily and by long course of legislation levied, what objects or purposes have been considered necessary to the support and for the proper use of the government, whether state or municipal. Whatever lawfully pertains to this and is sanctioned by time and the acquiescence of the people may well be held to belong to a public use, and proper for the maintenance of good government, though this may not be the only criterion of rightful taxation.' (Loan Assn. v. Topeka, 20 Wall. 655, 665 [22 L. Ed. 455, see, also, Rose's U. S. Notes].) In this state the granting of pensions and gratuities for military service is not a new experiment. By the act of May 11th, 1784, public land was granted to revolutionary veterans. By chapter 8 of the Laws of 1814, pay in addition to that granted by the United States was given to soldiers of the war of 1812. By chapter 178 of the laws of 1904 a pension was granted to the last survivor of that war. By section 220 of the Military Law a pension was given to any member of the militia who had been disabled within ten years in the performance of duty. A pension policy has long been adopted by the United States and acts similar to ours have been passed in at least nineteen other states.

"The payment of a pension or a bonus for past services showing the gratitude of the people, showing that the state

is mindful of those who have made sacrifices for it, is an incitement to patriotism and an encouragement to defend the country in future conflicts. Even if such a payment is not clearly one made in the general interest, at least there is such ground for the claim that where the legislature has accepted that view, the courts may not interfere. That they believe the action unwise or unnecessary is immaterial. to that question the legislature, in the absence of constitutional restrictions, is the final arbiter (Jones v. City of Portland, 245 U. S. 217 [62 L. Ed. 252, 38 Sup. Ct. Rep. 112]; State ex rel. Atwood v. Johnson, 170 Wis. 218 [7 A. L. R. 1617, 175 N. W. 589]; State ex rel. Atwood v. Johnson, 170 Wis. 251 [176 N. W. 224]; Gustafson v. Rhinow, 144 Minn. 415 [175 N. W. 903]; State ex rel. Hart v. Clausen, 113 Wash. 570 [13 A. L. R. 580, 194 Pac. 793]; Opinions of Justices, 211 Mass. 608 [98 N. E. 338]). What long custom and usage has sanctioned, what the weight of judicial authority has approved, that we should be slow to declare wrongful. Nor may a distinction be made between such a bonus as our act provides and a pension. The one is a reward for past military services payable at once; the other such a reward payable in installments. . . ."

[2] It is claimed that the purpose of these two acts (Stats. 1921, pp. 815, 969) is a public one because in furtherance of the settlement of lands and of the agricultural development of the state. There are decisions which support this view (Hill v. Rae, 52 Mont. 378 [Ann. Cas. 1917E, 210, L. R. A. 1917A, 495, 158 Pac. 826]; Wheelon v. South Dakota Land Settlement Board, 43 S. D. 551 [14 A. L. R. 1145, 181 N. W. 359]; State v. Clausen, 110 Wash. 525 [14 A. L. R. 1133, 188 Pac. 538]; Green v. Frazier, 253 U. S. 233 [64 L. Ed. 878, 40 Sup. Ct. Rep. 499]; Smith v. Kansas City Title Co., 255 U. S. 180 [65 L. Ed. 577, 41 Sup. Ct. Rep. 243]; McMahan v. Alcott, 65 Or. 537 [133 Pac. 836]; State ex rel. Goodwin v. Nelson County, 1 N. D. 88 [26 Am. St. Rep. 609, 8 L. R. A. 283, 45 N. W. 33]) and other earlier decisions taking a more strict view which would lead to the opposite conclusion (Allen v. Inhabitants of Jay, 60 Me. 124 [11 Am. Rep. 185]; Kingman v. City of Brockton, 153 Mass. 255 [11 L. R. A. 123, 26 N. E. 998]; Lowell v. City of Boston, supra; Curtis' Admr. v. Whipple and Others, 24 Wis. 350 [1 Am. Rep. 187]; Deal v. Mississippi

Co., 107 Mo. 464 [14 L. R. A. 622, 18 S. W. 24]; State v. Township of Osawkee, 14 Kan. 322 [19 Am. Rep. 99]; Loan Assn. v. Topeka, 20 Wall. 655 [22 L. Ed. 455, see, also, Rose's U. S. Notes]), but we base our conclusion as to the public character of the expenditure proposed entirely upon the fact that such expenditures are for the benefit of veterans of the World War and are, for that reason, of a public nature.

[3] The next question presented is the claim that the acts provide for a gift or loan in violation of sections 31 and 32 of article IV of the constitution. These sections,

so far as material, are as follows:

"Credit of State or Municipalities not to be Loaned. "Sec. 31. The legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the state, or of any county, city and county, city, township, or other political corporation or subdivision of the state now existing, or that may be hereafter established, in aid of or to any person, association, or corporation, whether municipal or otherwise, or to pledge the credit thereof, in any manner whatever, for the payment of the liabilities of any individual, association, municipal or other corporation whatever; nor shall it have power to make any gift, or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation whatever; . . .

"Extra Compensation to Officers Forbidden.

"Sec. 32. The legislature shall have no power to grant, or authorize any county or municipal authority to grant, any extra compensation or allowance to any public officer, agent, servant, or contractor, after service has been rendered, or a contract has been entered into and performed, in whole or in part, nor to pay, or to authorize the payment of, any claim hereafter created against the state, or any county or municipality of the state, under any agreement or contract made without express authority of law; and all such unauthorized agreements or contracts shall be null and void."

It is clear from these provisions, and from the abovecited decisions of this court, that if the statutes in question provide for a gift, or for a loan of the credit of the

state, they are to that extent a violation of these provisions of our state constitution, notwithstanding the purpose of the legislation is public and most laudable.

Before further considering the question thus presented, we will state in general terms the scope and effect of the laws involved in this controversy. The act establishing the Veterans' Welfare Board (Stats. 1921, p. 969), known as the California Veterans' Welfare Act, authorizes the welfare board to purchase and acquire land and water rights, to improve and subdivide such lands and sell the same at an amount which would return the purchase price and expenses incurred in connection therewith, plus five per cent interest thereon. Sales are to be made to "Any veteran who is not the holder of agricultural land or possessory rights thereto of the value of fifteen thousand dollars and who, by this purchase would not become the holder of agricultural land or possessory rights thereto exceeding such value, and who is prepared to enter within six months upon actual occupation of the land acquired . . . ". The land is to be paid for in forty years, together with interest thereon at the rate of five per cent per annum, compounded at periods fixed by the board. The amount due for improvements on the land shall be paid on amortized payments extending over a period not exceeding twenty years. The act also provides for the making of loans "not to exceed three thousand dollars to any one settler for the purchase of necessary livestock and equipment such loans. to be secured in any manner that the board may direct or without security other than the personal obligation of the settler."

The general scheme of this statute, then, is to provide for the purchasing and improving of lands and the selling of the same in small parcels to veterans who will become actual settlers, the purchase price to represent the pro rata proportion of the actual cost of such land and improvements, the purchase price to bear interest at five per cent per annum and to be compounded if not paid.

The statute providing for farm and home aid to veterans (Stats. 1921, p. 815), known as the "Veterans' Farm and Home Purchase Act," authorizes the Veterans' Board to purchase for resale to veterans of land for agricultural purposes not exceeding to each the value of $7,500, or a

The

home or home site not exceeding the value of $5,000. purchase is to be made when the board is "satisfied of the desirability of the real estate and of the ability of the applicant, and that such applicant is a veteran and that such applicant has agreed with the board to actually reside upon such real estate within six months from the date of the purchase by the board." The board is to enter into a contract with the owner for the purchase from the owner upon such terms as may be by them agreed. "The board shall enter into a contract with the applicant for the sale of said land to said applicant at a price to be fixed by the board, which will make the purchase price and sale price reciprocal, taking into account the difference, if any, in the interest rate to be paid on deferred installments by the board and the applicant, respectively, which price shall include the cost of such real estate and all expenses and costs incurred and estimated to be incurred by the board in relation thereto, inclusive of interest, administration, appraisals, examination of title, incidental expenses and such sum as shall be deemed necessary to meet unforeseen contingencies." The applicant is required to make an initial payment of ten per cent in case of a farm and five per cent in case of a home or home site, the balance to be amortized over a period not exceeding forty years with five per cent interest per annum.

In considering the attack made upon these laws it should be observed that we are only dealing with the question of whether or not there is sufficient validity in these laws to justify the appointment of the Veterans' Welfare Board and the incurring by them of expenses covered by the claims set out in the petition looking toward the carrying out of the laws. Even though some portions of these statutes, or some features of the law, may be unconstitutional, it is only necessary for the purpose of this case for us to determine whether or not there is sufficient validity in the laws to justify the arrangement made for carrying them out. Each law carries with it an appropriation. The law known as the California Veterans' Welfare Act (Stats. 1921, p. 969) makes an appropriation of $1,000,000. The Veterans' Farm and Home Purchase Act (Stats. 1921, p. 819) makes an appropriation of $2,000,000.