BOUNTY (Fr. Louie., goodness. from Lat. bonitos, goodness, excellence, from bonus, good). A term applied to any sum granted by law as an inducement to some undertaking believed to be of national importance. (1) Payments of bounties are sometimes made for the encourage ment of commercial or industrial enterprises. The payment contemplated is a direct one, but the term is also applied to indirect pecuniary benefits which arise through legislation. The so called sugar bounties of Germany. for instance, consist nominally in an abatement of internal taxes upon exported sugar. But as the abate ment is so measured that it is greater than the original tax, it constitutes in fact, if not in name, a bounty upon exportation. For a dis cussion of industrial bounties, see FREE TRADE :SUBSIDIES.
(2) Alonetary inducements to encourage men to join the army, or extend their service, are common. Usually bounty is given only in those countries whose armies are recruited by volun tary enlistment. The amount given varies with the need and difficulty of procuring recruits. During the Civil War in the United States, as much as $1000 was sometimes offered for en listment. This was, however, owing to the mag
nitude of the war and the immense number of men required. The English Government gives a bounty to men already serving in India to induce them to extend such service.
(3) In the United States Navy, money is awarded a ship which sinks or destroys an ene my's ship of war. When the vessel destroyed is of equal or superior force the victors are awarded $200 for each person on hoard the enemy's ships at the beginning of the engage ment; if of inferior force. 8100 for each person. If the ship is destroyed after the capture, for public interest, $50 is awarded for each person on board the ship at the time of capture. The amount awarded is divided among the officers and crew in the same manner as prize-money. When the number of persons on board the destroyed ship cannot be accurately ascer tained. an estimate is made, based on the com plement of a. ship of the same class in the United States Navy. This bounty is authorized by the United States laws, but Congress must first make an appropriation for that purpose.