Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-07
Treasury Head Tells Senate
It Virtually Would
Bankrupt u. S.
VETO SEEMS CERTAIN
Senator Underwood Praises Stand Of
Secretary Mellon-Cost up to S.
250,000,GGC

Washington, July THE Hard
ing Administration delivered stag
gering blow to soldier bonus leg! Ia
tior yesterday, when Secretary +
the Treasury Mellon, at the direction
of President Harding. declared that
the pending bill would "commi' tha
Government TO a stupenudns inG1ar
inmate liability" wn;cn vrt ;;.,E
would bankrupt the Federal Treas
ury.
This statement was made :. 2
communication addressed to Scn?ltr
Frelinghuysen, Of New Jcr.ey s":
read il the Senate late vas ..rlaT af
ternoor. The letter cra&lod c,rf'n.
sion bordering on demo '&,,2atian n
view Of Inc Senate's actl,r yeStcr,
Cay in making the "adju'":l cGml.o.,
saiton" bill dealing with the i.r,,
s.e~ i five schedule plan .iv NJ.
IL : .cl business Of that bo;i% IS
o,t.::,u forces the Se~qlr to vote
upon the l,ill unless its friend: vol
UNFAIRLY lay it aside.
No action hitherto taken BY the
Harding Administration has SO be-
wildered Republican leaders, mary
of whom feel that they have been
unfairly dealt with in being allowed
to bring bonus legislation to the
point Of passage before finding that
President Harding ana ms Secretary
of the Treasury opposed it IS un~
compromisngly as did President
Wilson and Secretary Houston.
To add iurther 70 the fn'barrass-
ment Of majority leaders Of the
House and Senate, The Mellon letter
is so decisive as to leave no doubt as
to the Presidents determination 70
veto the measure should Congress
disregard the objections presented
by Mr.. Mellon and pass the bill not
withstanding. There does not appear
to be the slightest chance Of passing
the bill over q veto, and Cjngres,
sional leaders fully realize the fu.
tility OF bringing it to vote, har-
rassed as they are by tho bonus lob
by.
AS soon as the letter was read
the Senate ordered it printed as 9
public document. taking note Of the
fact that ii was dated July ?, al
though oalr made public yesterday
afternoon. Why it should haze been
held four days is q mystery 70 most
Senators The only explanation Cf-
fered is that the letter was only in
tended TO be made public should it
appear that The enactment of the
bill was imminent.
Senator Underwood, minority lead
er. took tie floor Immediately with
complimentary reference 10 the
position taken by Secretary Mellon,
saving that the Secretary had cor
rcctly diagnosed the national sitra-
ton
:'lt is an unpleasant task said
Senator Underwood, "to oppoSs. this
30 called Soldier Bonus bill ! had
rot expe. led the letter Of the Secre
tarv Of he Treasury when ! mad"
a few renarks in opposition the
other !av. However, he Secretary
has frank ' and courageouslT ana,
lyzcd our situation. His letter has
thoroughly covered the grourd. He
is emincntly correct in his attitude
toward this legislation.
Replying briefly. Senator McCum,
Der, Republican, in charge OF the
bill, denied that any attempt was
being made te measure the services
Of soldiers OF the World War in do
lars.
Mr.. Mellon, VINO wrote in response
to an inquiry as to the burden which
the bonus would place upon tht
Treasury. showed that the cost O
the enterprise might run as high 9:
S5,250,000,000. IN any event The les
islation. he asserted, inevitabl,
wculd increase the war burden emo
mously and could be financed onl.
by adding to the public debt ant
hy levy.;nr rpw taxes
~ Moreover, it was shown that srcl
legislation would complicate the r
! funding operations Of the Treasury
particularly so On account Of earl
maturity Of S7.5OOOon.00 900 Of out
! ,..a;.,1-- ol.i;c<.t;a,,- e Gll 900 On