The New York herald., 1921-07-07

example that would so greatly strengthen
the market for Liberty bonds as the
assurance that Congress had once and
for all given up consideration OF SOL
| diers bonus.
II have already submitted to Congress.
In my letter OF Apr-i so to the chairman
of the Committee on Ways and Means.
detailed statement OF the condition OF
| the Treasury. the latest estimates OF the
receipts and expenditures of the Govern
ment for the fiscal years 1921 and 1929,
and an outline OF the Treasury's pro-
gramme for dealing with the short dated
debt The figures given In that letter
show that even without any expenditures
| on account OF adjusted compensation
under the proposed bill. there is grave
danger that the necessary expenditures
| OF the Government in the near future
will xceed its current receipts. thus leav-
ing deficits to be met by new taxes or
further borrowing.
Would Defer Action.
"In these circumstances, l believe
that the best interests OF the country
demand that action be deferred upon
the soldiers bonus or the bill to pro-
vide so-called adjusted compensation.
This is not a time TO impose several
billion dollars of new liabilities on an
already overburdened treasury. 1t
seems particularly Inappropriate to give
present consideration to the measure
when we still have before us the press
ing problem of revising the internal
tax laws and finding sufficient revenues
to meet the existing requirements OF the
Government.
This problem must be dealt with
in the midst of extreme and widespread
IND Iftct ctffa danracetnn ThaGa
affect not only every industry in our
own country. but are worldwide, and
our past experience furnishes no sure
guide as to their duration. The revision
of the tax laws. therefore, so as to ad-
Just them to present conditions and at
the same time produce sufficient
revenues to meet the existing require
ments of the Government. is a matter
OF great difficulty. and even without
the burden which would be imposed by
the bonus. industrial and commercial
earnings In the current year have so
decreased that 1t is a matter of grave
concern to the Treasury as to the
amount of revenue that will be received
in 1922.
1.-THE country Is under a solemn obli-
cation to those who fought its war. Our
concern. of course. should be to make
full provision for the needs of disabled
veterans. To that object the country Is
pledged to give without stint OF its re-
sources. 1t would be unfortunate in
the extreme while we are still strug-
Cling with that problem to dissipate our
resources In sweeping plan for cash
payments to able bodied soldiers and
sailors. The best interests Of the vet
Grams cannot in the last analysis be
considered separate and apart from the
best interests of the country as whole.
and I should be derelict in my duty to
the country and to the veterans them
selves IL l failed to give this warning
of the inevitable financial consequences
of the pending bill. Its direct conse-
quences are inescapable and I have al
ready indicated what they would be. 1t
would also involve grave danger Of re
newed imitation. increased commodity
prices and unsettled business conditions.
The result would be serious injury
and loss to the whole community. and
in the long run even the veterans
themselves would lose far more than
they would gain. I cannot bring myself
to believe that this would be adjusted
compensation for service that was
performed as the highest duty Of cit
izenship and a sacrifice that can never
be measured In terms of money"