The Monmouth inquirer., 1921-07-14
MELLON ATTACKS
BONUS AS MENACE
Secretary Warns That Bill Would
Disrupt Treasury, Raising
Taxes and Living Costs.
U. S. NOW STAGGERING
Writes Sen. FreIlnehuysen That Pay
ments Would Prove Boomerang.
Appeals to Congress to Get coun-
try Back on Sound Basis.

Washington.-P Passage Of a soldier
bonus bill at this time would be most
unfortunate for the Treasury and for
the country; would disrupt Treasury
refundment proposals, increase taxes
and the cost Of living, and in general
give financial and economic setback.
This is the opinion of Secretary Of the
Treasury Mellon.
In a letter to Senator Frelinghuy-
sen the Secretary expressed his Views
on the bonus, saying the situation
created under any of the optional
plans proposed would be a serious one
and would fairly wreck the Admins
tration plans and efforts for Govern
ment economy. In this connection
the Secretary expressed fears that
Government disbursements might in
any event run ahead of receipts, and
the matter was one Of grave concern
to the Treasury.
Notwithstanding the frank analysis
and declarations of Secretary Mellon
the presentation Of the Secretary's
letter in the Senate brought rever-
sion of the sentiment In that body
strongly in favor Of the bonus. Many
Senators indicated a willingness to
sacrifice considerations for some
form of bonus legislation. Senator
McCumber, sponsor of the bill, spoke
in favor of the budget, and sought to
discount Mr.. Melons forceful out
line with the declaration that it was
OF course up to the Secretary to look
after the Treasury interests and con-
serve funds.
Minority leader Underwood (Ala.)
opposed the bill. He said: "The vote
here yesterday in favor Of taking up
for consideration the so-called bonus
bill indicates on its face, at least, that
there is a strong sentiment in favor
of Its passage.
''It is not a pleasant task to speak
against this bill but do not feel that
would do my full duty II I did not
express, so that it may appear in the
record, some of the reasons why be-
heve this bill should not become q
law.
LIZ ---1- sEt-<-- - s'tts
the Secretary Of the Tresury. con-
slider it as very timely one. strong,
fcrceful and to the point. In my judg-
ment, If the party In power desires to
serve the soldiers, serve the farmer
and serve the people generally In this
country, the action that party should
take is to endeavor to bring the coun-
n1~ - %Ah1 <.q
finance, stable conditions of business,
so that toilers on the farms and In the
workshops may have employment and
reasonable remuneration for their toll.
"To attempt to palliate the present
condition by paying men a bonus does
not relieve the situation, and is not
for the benefit of the country. am
opposed to the bill for many reasons" !"
He attacked the bill, reading from
the McCumber report which explained
its provisions, and said it was un-
worthy Of the committee to report 1t
out.
Referring to the fact that 1t was
paying for patriotic services paying
a dollar day, mo man in the Sem
ate, ne SdlQs WOulu TAKE the cudnCSc
that these soldiers took for a dollar
a day."
Secretary Melons letter was In re-
sponse to communication from Sem
ator Frelinghuysen, In part as fol-
lows: I'm my study Of the bill have
tried to determine what financial obli-
cation its enactment would place upon
the Treasury. Such obligation your
department, am sure, is equipped to
ascertain. have no desire to place
any undue burden upon you but 1
would be grateful If you could see
your way clear to indicate what the
enactment of the bill would mean to
the Treasury of the United States"
No such sum as proposed. Secretary
Mellon says, could be taken from the
public treasury, even though extended
over a period of years, without throw.
ing heavy burden upon all the people
Of the country.
WOULD GUST TURK RULER