New-York tribune., 1920-03-11
Bonus Bonds
Mean a Panic,
Says Mondell
Republican House Leader
Opposes Legislation at
This Time, Fearing Prices
Would BE Sent Skyward
Senate Discusses !
Bills
Swope Urges Years Pay for
All Serving Two Months,
at 1900 Millions Cost

WASHINGTON. March 10.--A bond
issue TO pay adjusted compensation to
former service men. Republican Leader
Ways and Means COMMITTEES to-day,
would bring danger Of "a panio and
ssad priees ballooning." BE opposed
any relief legislation at this time, on
the ground that heavy additional taxes
would DO necessary, whatever plan Of
relief was adopted.
81 don't believe We car Issue bonds"
Mr. Mondell ssid. 'sH they were I'M
tended for investment they would
threaten the specie basis Of currency.
A popular issue would have all tho Ill
effects of en- investment issue, besides
initiating currency.
Extension of financial relief IL ut
terly impossible unless the people are
willing to stand heavy additional taxes.
A consumption tax, always unpopular,
is the only tax which could be collected
from month to month, producing rev.
enue continuously"
Urges %IyoVVsVVVsVVV Z Anu
Representative Swope. Republican, Of
Kentucky, urged adoption Of q bill
granting an extra years pay to all
those in tho servics except those who
served less than two months. He esti-
mated such a plan would require an
outlay Of $1,3o0,0O0,000.
The cash payment plan OF tho Ameri-
can Legion for $50 for each month OF
service was indorsed by Major A. B.
Crtchfeld. Of the Infantry School,
formerly Of Akron, Ohio. Members Of
the committee challenged his state
ment that former soldiers will get
what they want" Representative Gar
ner, Democrat, Of Texas, commented
that former soldiers, If they continue
to be we'll organized as at present, will
get all their demands"
Replying to question by Repre-
sentative Kitchin, Democrat, Of North
Carolina, as to when representatives
OF soldier organizations may be ex-
pected to make another request for
financial aid from Congress-" Major
Critchtield replied:
Nobody can tell. Any body Of men
which thinks it can get something out
of the rest Of the American people
will try to get all they can"
Discussed in the Senate
The soldier relief question was dis
cussed briefly in the Senate. Chair
man Warren Of the Appropriations
Committee and Senator Sterling, Re-
publican, Of South Dakota, presented
petitions from soldiers opposing cash
payments to former service men.
Opposing such payments, Senator
Warren said the soldiers pay was
doubled. that generous allowances
we're made him and bonus granted
when they were discharged.
Senator Sterling said a bonus would
cost $4,000, 100000, while the people al
ready were struggling under an enor-
nous debt, and Senator Thomas, Dem
ocrat, Of Colorado, interjected that If
sonther bonus were given it probably
would be followed by request for
still another one.
Speaking in favor Of a bonus, sena-
tor Trammell Democrat, Of Florida
declared it would be "tribute or
recognition, similar to that given
union veterans Of the Civil War"
cts not a matter Of commercializ-
ing our soldiers service" he said
"but tribute Of honor and respect
TO pay debt Of gratitude IL Is not 8
cheapening OF their patriotism. II
that Is true, France, Great Britain and
Canada have cheapened 1t for thei,
soldiers"