South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-07
DEFER ACTION
is The ADVICE
OF SECRETARY
Declares Present Is No Time
to Add New Liabilities
to Nation.
COST IS OVER BILLION
Liberty Bond Holders Would
Face Threat of Further
Depression.

By Associated Press:
WASHINGTON July 6.-Witl
warning that there - grave danger
Of an immediate government deficit
Secy Mellon asked congress We'd
nesday TO defer action on the sol
diers bonus BILL
This is not a time 20 impose sew
eral billion dollars OF new Liabilities
on an already overburdened treas
ury," the secretary said 20 Sen. Ere
hnghuysen, republican. New Jersey.
in letter which was read IN the
senate when the bonus bill was call
ed up. The bill has already passed
the house and the letter was In re-
Spouse TO a request from Sen Ere
linghuysen for statement Of the
financial obligations which the bill
would place upon the government.
The letter was characterized by
Sen. Underwood. democratic leader,
who. after its reading made an at
tack on the bill as strong. forceful,
and TO the point"
In passing the bill, tho Alabama
senator said. the republican major
ity would write i'm the country's
history that men no longer sacrifice.
but measure their service in dollars.
Replying briefly. Sen. McCumber.
republican. North Dakota. i'm charge
of the bill denied that any attempt
was being made TO measure the serv-
ices Of soldiers Of the world war IN
dollars.
Cost TO Nation.
/ Mr. Mellon estimated that this
would cost the country between a
/ billion and a half and FIVE and a
quarter million dollars; that l. would
swell the cost of government and
i virtually defeat the administration
program Of retrenchment and econ
omy.' and that IL would block "ali
refunding operations on the national
debt, and depress further the price
of liberty bonds"
IT should be a derelict in my duty
10 the country and TO the veterans
/ themselves II failed TO give this
warning Of the inevitable financial
/ consequences of the pending BILL
7 he concluded
"The result would be serious in
jury and loss 10 the whole commun-
I ity and i'm the long run the veterans
themselves would lose far more than
they would gain
Fallacy of Postponemcnt
! Not the least disturbing feature.
/ he continued. was the bills plan %
! postpone actual distribution OF funds
Iuntil next year, which he said. tends
! 10 mislead the people into the belief
/ that in some way the proposed pro
/ gram can be accomplished without
imposing a serious burden on the
country
1T must inevitably increase the
war burden which the people have
I 10 bear" ne continued 1T could be
financed only by adding 10 The bur
( den OF debt and taxes under which
the country is now staggering. How
ever. financed. INo such sum could be
taken out OF the treasury without
throwing a corresponding load upon
the whole people IN the form ~ in
= creased interest charges. Increased
taxes and increased cost or living
Enough Troubles Now.
Cost OF refunding the early ma
turtles of public debt, the secretary
said. would be vastly increased. and
/ the refunding operations themselves
J seriously embarrassed. Holders OF
Liberty bonds" he added. would
have TO face the threat Of further
depression
1T seems particularly appropriate
1 ne said, "tO give present cons-dera-
ton 10 the measure when we still
I have before Us the pressing problem
/ Of revising the internal tax laws and
/ finding sufficient revenues 20 meet
the existing requirements OF govern
ment
This problem must 5e dealt with
lin the midst OF extreme and wide
spread industrial depression. These
, conditions affect not only industry
lin our own country. but are world
wide and our past experience furn-
Ishes no sure guide as 20 their du-
ration"
B. Continuing. the secretary ss1d
that "our first concern. OF course.
should be 10 make fun provision for
the needs OF disabled veterans.
ITO that object he said. the
country is pledged 20 give without
stint OF its resources. j. would be
unfortunate En- the extreme while
we are stiu struggling with that
problem. 20 dissipa-e our resources
in a sweeping plan FOR cash pay
ment 20 able bodied eN-soldiers and
/ sailors"
Sen. Underwood described the bin
as political camoufIage." The plan
OF "peddIng OUT cash payments III
fifty dollars quarterly. he said.
would not aid the soldiers. He
/ challenged the republicans 70 pro-
pose q lump sum payment. which
he said ne would support, and which
q he declared would provide a stake
which might enable soldiers 20 get
into business or buy a home. The
best service the republicans could
|rende. "t0 the soldier and 20 the
country" sen. Underwood CONT
nued would be 10 bring the count
Try back 10 stable financial and buzz
ness conditions" when men would
lget a fair wage