, 1921-07-28

Ously embarrassed. The market for
would be adversely affected and the
patriotic holders of Liberty bonds.
instead of looking forward to i'm
proved market conditions, would
have to face the threat of further
depression. know OF no one thing,
for example, that would so greatly
strengthen the market for Liberty
bonds as the assurance that Congress
SOLDIERS ADJUSTED
had once and for all given up con-
s%ideration Of a soldiers bonus.
II have already submitted to Con-
gress. in my letter Of April 80 to the
chairman Of the Committee on Ways
and Means. a detailed statement Of
the condition Of the Treasury. the
latest estimates Of the receipts and
expenditures of the government for
the fiscal years 1921 and 1922, and
an outline Of the Treasury's pro-
gram for dealing with the short
dated debt. The figures given in
that. letter show that even without
any expenditures IN account of ad-
justed compensation under the pro-
posed bill, there is grave danger that
the necessary expenditures Of the
government in the near future will
exceed its current receipts; thus leav-
ing deficits to be met by new taxes
or further borrowing.
"In these circumstances I 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 compensa-
ton. This is not a time to impose
several billion dollars Of new liabili-
ties on an already overburdened
Treasury. 1t seems particularly in
appropriate to give present consider
alton to the measure when we still
have before us the pressing prob
lem 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 industrial depres-
sion.
"These conditions affect not only
every industry in u own, country,
but are worldwide, and our past ex-
p%erience furnishes no sure guide as
to their duration. The revision Of
the tax laws, therefore, so as to adj
just them to present conditions and
at the same time produce sufficient
revenues to meet the existing re-
quirements 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 Treas
ury as to the amount of that
will be received in 1922.
1.-THE country is under a solemn
obligation to those who fought its
war. Our first 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 1t
would be unfortunate in the extreme.
while we are still struggling with
that problem, to dissipate our re-
sources in a sweeping plan for cash
payments to a~ble-bodied ex-soldiers
and sailors.
THE best interests of the veterans
can moi in the last analysis be con
sidered separate and apart from the
best interests Of the country as a
whole, and I should be derelict In my
duty to the country and to the vet
Grams themselves il I failed to give
this warning of the inevitable fnan-
cial consequences of the pending
bill. It's direct consequences are In
escapable. and l have already indi-
Gated what they would be. 1t would
also involve grave dangers of renew
ed initiation, increased commodity
prices, and unsettled business condi-
tions. The result would be serious
injury and loss to the whole com
munity. and in the long run even the
veterans themselves would lose far
more than they would gain. l can
not bring myself to believe that this
would be adjusted compensation
for a service that was performed as
the highest duty Of citizenship and
a sacrifice that can never be mea-