Albuquerque morning journal., 1921-07-07
Mellon Requests Congress
to Defer Action on Mea-
sure to Pay Cash to For
mer Service Men,
LETTER "F0RCEFUL"
UNDERWOOD STATES
Secretary Says This Is No
Time to Impose New Ii
abilities on an 0ver-Bur-
dened Treasury,
tBy The Associated Press,

warning that there is grave danger
Of an immediate government deficit
Secretary Mellon asked congress
today to defer action on the SOL
dier's bonus bill.
This is not time to impose
several million dollars of new liza
bilities on an already overburdensd
treasury" the treasury secretary
said to Senator Frelinhuysen. re-
publican, New Jersey, in a letter
which was read in the senate when
the bonus bill was called up. The
bill has already passed the house
and the letter was in response to
a request from Senator Freling-
huysen for a statement of the FL
nancial obligations which the bill
would place upon the government.
letter 'To the Point"
The letter was characterized by
Senator Underwood, democratic
leader, who, after its reading made
forceful and to the point" In pass
ing the bill. the Alabama senator
said, the republican majority would
write in the country's history that
men no longer sacrifice. but meas
ure their service in dollars" Re-
plying briefly, Senator McCumber,
republican of North Dakota, In
charge Of the bill. denied that any
attempt was being made to meas
ure the services of soldiers of the
world war in dollars.
Cost TO the Country.
Mr.. Mellon estimated that the
bill would cost the country be-
tween a billion and half and five
and a quarter billion dollars, that
it would 'swell the cost Of govern
ment and virtually defeat the ad-
ministration's program or retrench-
ment and economy" and that 1t
would block "all refundlng opera
tions on the national debt and de-
press further the prices on liberty
bonds" These. he said, would be
Inevitable direct financial conse-
quences,', adding that probable il-
direct results would be grave dan-
ger of renewed initiation, increased
commodity prices and unsettled
business conditions"
Cash Payment Sections.
All of his estimates, the secre-
tary explained, were devoted mere.
ly to the cash payment sections OF
the bill, and took mo account OF
expenses of administration or pos-
sible cost of affording vocational
farm or home aid, or land
a{I - Vphn
elect such benefits"
~ should be derelict in my duty
10 the country and to the veterans
If I failed to give this
warning of the inevitable financial
Of the pending BILL"
he concluded. "The result would
be serious injury and loss to the
whole community and in the long
run. the veterans themselves would
lose far more than they would
gain. cannot bring myself to be-
ieve that this. would be adjusted
for a service that
was performed as the highest duty
of citizenship and a sacrifice that
never can be measured in terms
Of money"
Disturbing Feature.
Not the least disturbing feature
he continued, was the bill's plan to
postpone actual distribution of e.
funds until next year, which he
said. "tends to mislead the people
into the belief that in some way
the proposed program can be ac-
complished without imposing q se-
rious burden on the country"
sit must inevitably increase the
war burden which the people have
to bear" he continued. at could
be financed only by addition to the
burden of debt and taxes under
which the country is now stagger-
ing. However. financed, no such
sum could be taken out Of the pub
lie treasury without throwing @
load upon the whole
people in the form of increased in
terest charges. increased taxes and
Increased cost of living"
Cost of Refundlng.
Cost of refunding the early ma
Turtles of public debt, the secre-
tary said, would be vastly in
creased, and the refunding opera
lions themselves seriously embar-
Holders of Liberty bonds,
he added, would have to face the
threat of further depression"
ut seems particularly in appro-
he said, ito give present
to the measure when
we still have before us the press
ing problem of revising the inter-
nal tax laws, and finding sufficient
revenues to meet the existing re-
of payment. This
problem must be dealt with in the
midst of extreme and widespread
Industrial depression. These con-
litions affect not only industry In
our country, but are world wide.
md our past experience furnishes
40 sure guide as to their dura-
ion."
Needs Of Veterans.
"Our first concern of course Is
10 make full provisions for the
needs of disabled vetepf rs, To that
object the country is pledged to
rive without stint of its resources.
Il would be unfortunate in the ex-
RENE, while we are still struggling
With that problem. to dissipate our
'esources in sweeping plan for
ash payments to able-bodied ex-
oldiers and sailors"
Senator Underwood described the
ill as political camouflage." The
,lan of "peddling out" cash pay
nents of $50 quarterly. he said,
would not aid the soldiers. He
the republicans TO pro-
bose a lump sum payments which
le said he would support, and
which he declared would provide
/ stake" which might enable sol-