The New York herald., 1921-07-07

as adjusted service pay (2) the pay
ments and loans to be made on adjusted
service certificates and (3) the pay
ments involved in the so-called farm or
home aid
The most conservative estimates
show that the bill would cost from about
$500. .000,0 (if the bulk OF the pay
fnents were on account Of adjusted SER
vice pay. the greater part of which
would fall in the near future) to about
1880, 200, 600 OF most veterans elected
10 take adjusted service certihcates), the
payments on which would be distributed
over period of twenty years. The
actual cost of the bill should fall be-
tween these two extremes. according to
the choice Of plan made by the veterans.
II, as seems probable. at least one-half
should elect the cash payment plan and
about one-half the certificate plan, with
one-third of the latter borrowing on
their certificates. the ultimate cost of
the bill. it Is estimated would be over
$3,330, 900 900 These estimates take no
account OF expenses of administration or
possible cost OF affording vocational
training aid farm or home aid, or land
settlement aid TO veterans who elect such
benefit. These will involve substantial
additional expenses. Under title " OF the
bill. for example. any veteran who elects
payment or in instalments an amount
equal to his adjusted service pay In
creased by 40 per cent for the purpose
OF enabling him on or after January l,
1922. to purchase or make improvements
on city or suburban home or farm.
IL any considerable proportion or the
veterans should choose this form OF aid
the effect would be TO throw heavier
expense into the first two or three years.
and perhaps greatly increase the aggre-
gate cost of the plans
Would Strain Finances.
These estimates. incomplete as they
are, show the heavy obligation 10 which
the pending bill would commit the coun-
try. To impose these vast additional
liabilities upon the Treasury, particu-
larly under present conditions in indus
try and commerce, would in my Judg-
ment create a serious situation.
Not the least disturbing feature OF
the bill Is the plan 20 pos stpona actual
distribution of the principal benefits
conferred by the bill TO the fiscal year
1923. This means that. without confer
ring immediate benefits on ex-service
men, the country would be committing
itself TO a stupendous indeterminate lia-
bility which. once assumed, it would
have TO carry through no matter how
embarrassing it might prove to the
finances Of the Government and the
business of the country when the time
comes for fulfilment. Incidentally, this
feature of the bill tends to misIead the
people into the belief that In some way
the proposed programme can be accom-
plished without imposing serious bur-
den on the Treasury of the country. The
result Is to secure for the bill more
favorable consideration than 1t coald
receive were the situation presented in
it's true light.
AS matter of fact. plan to dis
burse even over a period of years up 10
four or five billions of dollars as ad-
Justed compensation must inevitably In
crease by that much the war burden
which the American people have to bear.
1t would greatly swell the cost of gov
ernment and virtually defeat the ad-
ministration's programme of economy
and retrenchment. It could be financed
only by adding to the burden of deb:
and taxes under which the country IS
now staggering. However financed. no
such sum could be taken out Of the pub
lie Treasury without throwing corre-
spending load upon the whole people In
the form OF increased interest charges.
increased taxes and increased cost of
living. This burden, moreover, would
be in addition to that already imposed
in most of the States. which have pro-
NiueQ pOuuSeS III varying QGBTec6 "a
liberality to veterans Of the late war.
Tells OF other Burdens.
Nor could the vast payments required
by the bill be financed without introduc-
ing grave complications into the refund
ing operations which would be necessary
within the next few years. The Govern
ment has to face early maturities of
public debt amounting to about $7.500.-
100000 OF which apout $4,000, 000. 900
.fall in the same fiscal year in which it
is proposed to begin cash payments un-
der the BILL The greater part of this
maturing debt will have to be refunded
and II soldiers bonus must also be
financed the cost OF mat refunding will
b vastly increased and the refunding
operations themselves seriously embar
rassed. The market for outstanding
Government securities would be adverse
ly affected and the patriotic holders of
Liberty bonds. instead of looking for
ward to improved market conditions. |
would have to face the threat of further
depression. l know OF no one thing for