The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-03-28
Mr.. Taft on Bonuses

Mr.. TAFT on Bonuses
In the statement Of his opposition
to general soldiers bonus measure,
ex-President Taft says:
THE simple fact is that a bonus
measure will delay seriously the COM
ing OF good times, and thus, in the long
run, will injure even the expectant
beneficiaries more than it will help
them. To assume now the national
obligation which the bonus measure
will involve, is not the utmost econ
omy' which thesituation calls for; it
is entering upon new fields of ex-
penditure' and is flying in the face of
our imperative duty to reduce expen-
ditures"
The former president refers to Sec
rotary Mellen's recent statement that
even with he utmost economy and
without enteli nk upon new fields of
expenditures. there will still be need
ed a slightly larger budget than was
| required last year. On account of the
slowing down of national industry and
the consequent slump in general pros
perity, this will necessitate higher tax
alton even 10 raise the same amount
of revenue. And higher taxes in turn,
according to Mr. Taft, operate as
damper upon the investment of capital
in productive enterprises. This o2er-
ate& to depress general prosperity in
a like ratio.
Another resu* of undertaking a new
expenditure % one and a half to two
billion dolla.s which is pointed out
would be the disastrous effect upon
the public credit. Aside from it's or
binary routine expenses, the govern
ment has now outstanding $500, G00,-
600 in obligations which must be taken.
care of within the next two years.
Surely this is a task sufficiently ap-
palling to induce soberness in devising
new schemes upon which to spend
money. The items which make up this
staggering total are the victory notes
for $4,50O,0O0.00O. a floating debt of
more than $4,000, 100000 and the war
savings certificates.
It is exceedingly doubtful whether
such a tremendous sum can be sue
cessfully refunded at a reasonable rate
of interest even with the best that can
be done. No such feat has ever been
accomplished during a period of
peace within a reasonable space of
time. Raising $7,500,O00,000 involves
pro rata of more than $40 apiece
for every man, woman and child in
the country. Can it be done? If the
rates of interest are higher it means
that the taxes will have to be higher
which causes an involuntary shud-
der. It would also tend to depress the
value of liberty bonds unless the in
terest they bear was also increased,
These arel some of this obstacles
Mr.. Taft sees in the way Of bonus
legislation. He also, along with many
others, doubts whether it would pro.
mote the real interests of its intended
beneficiaries. 1t will the rather tend
to relax their individual activities
Those who feel that the government
owes them settlement unconscious
ly incline to an attitude of mind which
would make such allowance a neces-
sity. Those, however, who have nut
the idea of a bonus out of their minds
are redoubling their diligence in the
fields of their activity
SO far as its economic effects upon
the country's prosperity and the gov
ernment's credit go, the views of Mr..
Taft and Secretary MelIen on the pro-
posed bonus legislation are similar in
substance to those of former Secretary
Houston. 1t is one of the biggest
problems that the forthcoming session
of congress will be called upon to deal