Evening star., 1921-07-07
Delay Of Soldier Bonus Urged,
Because of Financial Danger
Secretary of the Treasury Mellon Warns Congress That
Gouernn,ent Faces Serious Deficit if Money
Burdens Are Increased.

With a warning that there is grave
danger of an immediate government
deficit, Secretary Mellon asked Con-
soldiers bonus bill. =
This is not a time to impose sew
eral billion dollars of new liabilities
on an already overburdened Treas
ury," the Secretary of the Treasury
said to Senator Frelinghuysen. repub
lfcan, 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
from Senator FreIingnuysenH for u
statement of the financial obligations
which the bill would place upon the
government
Declared to the Point.
The letter was characterized by Sem
ator Underwood. democratic leader.
who after its reading made an attack
on the bill. as strong. forceful and
TO the point" In passing the bill. the
Alabama senator said. the republican
majority would write in the coun-
try's history that men no longer sac
rifce, but measure their services in
dollars" Replying briefly, Senator
McCumber, republican. North Dakota.
in charge of the bill. denied that any
attempt was being made to measure
the services of soldiers of the world
war in dollars.
Mr.. Mellon estimated that the bill
would cost the country between a
billion and half and five and a
quarter billion dollars: that it would
swell the cost of government and
virtually defeat the Administrations s
~
omy." and that it would block all
refupding operations on the national
debt and depress further the prices
of liberty bonds" These. he said,
would be Inevitable direct financial
consequences" adding that probable
ger of renewed imitation. increased
commodity prices and unsettled busi-
ness conditions"
Impresses Seriousness.
All of his estimates. the Secretary
explained. were devoted to the cash
payment sections of the bill, and
took mo account of expenses OF ad-
ministration. or possible cost of af-
fording vocational training, farm or
home aid, or land-settlement aid to
veterans who elect such benefits
II should be derelict in my duty
to the country and to the veterans
themselves if I failed to give this
warning Of the inevitable financial
consequences 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. l cannot
bring myself to believe that this
would be adjusted compensation for
service that was performed as the
highest duty of citizenship and a
sacrifice that can never be measured
in terms of money"
Burden on People.
Not the least disturbing feature. he
continued. was the bills plan to post
none actual distribution of fundsl
until next year. which, he said, tends
to mislead the people into the belief
that in some way the proposed pro-
gram can be accomplished without
imposing serious burden on the coun-
try"
.'it must inevitably increase the war
burden which the people have to
bear" he continued. TT could be
financed only by adding to the burden
of debt and taxes under which the
country is now staggering. How
ever financed. no such sum could be
taken out of the public Treasury
without throwing corresponding
load upon the whole people in the
form of increased interest charges