Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1921-07-07
CONGRESS ASKED TO DEFER
ACTION on BONUS

Washington, July 6.-With a warning
that there is grave danger of an imme-
diate government deficit, Secretary Mel
Ion asked congress today to defer action
on the soldiers bonus bill.
This is not a time to impose several
billion dollars of new liabilities on an
already overburdened treasury the
treasury secretary said to Senator Ere
republican, 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
the letter was in response to a request
from Senator Frelinghuysen for a state
ment of the financial Obligations which
the bill would place upon the govern
ment
The letter was characterized by Sena-
tor Underwood, democratic leader, as
strong. forceful and to the point"
Mr.. Mellon estimated that the bill
would cost the country between a billion
and a half and five and a quarter billion
dollars, that il would swell the cost of
government and virtually defeat the ad-
min:stration's programme of retrenching
and economy" and that it would block
'all refunding operations on the nation
al debt, and depress further the prices
OF liberty bonds"
All of his estimates, the secretary ex-
planned. were devoted merely to the cash
payment sections of the bill and took
no account of expenses of administra-
ton. or possible cost of affording voca-
tional training. farm or home aid, or
land settlement aid to veterans who elect
such benefits"
Il 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"
Not the least disturbing feature. he
continued, was the biIl's plan to post
pone actual distribution of funds until
next year, which, he said tends to mis-
lead the people into the belief that in
some way the proposed progra mme car
be accomplished without imposing a Sc.
rious burden on the country"
1T must inevitably increase the wal
burden which the people have to bear
he contended. at could be financed only
| by adding to the burden of debt ant
taxes under which the country is now
| sta ggering, however financed, no such
sum could be taken out of the public
treasury without throwing a correspond
ing load upon the whole people in tn,
+, form of increased interest charges. in
crea sed taxes, and increased cost of liv
ing"
Cost of refunding the early maturitie,
of public debt, the secretary said ''woulC
be vastly increased. and the refundins
operations themselves seriously embar
rassed"
1T seems particularly inappropriate,
he said, ito give present consideration t.
| the measure when we still have befor,
us the pressing problem Of revising tn,
internal tax laws, and finding sufficien
revenues to meet the existing require
mnets of government"
Continuing the secretary said that "ou
first concern, of course should be t.
make full provision" for the needs of dis
abled veterans.
ITO that object he said. "the coun
try is pledged to give without stint Of #
resources. 1t would be unfortunate Il
the extreme, while we are still struggling
with that problem. to dissipate our re
sources in sweeping plan for cash pay
ments to able-bodied ex-soldieTs and sail
ors"
Senator Underwood described the br
as political camouhage" The plan Q
| ''peddling out" cash payments IN fift
dollars quarterly, he said, would not all
the soldiers. He challenged the repuh
licans to propose a lump sum payment
whech he said he would support an
which he declared would provide
stake" which might enable soldiers I
get into business, or buy home