The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1921-07-15
MELLON OPPOSES
SOLDIERS BONUS
Secretary of Treasury Says
Measure Is Out of Line
With Economy.
URGES ACTION Be DEFERRED
Would Not Compensate for Service
Performed as Highest Duty of
Citizenship-Can't Be Meas
ured in Terms of Money.

Washington, July S.-Secretary Of
the Treasury Mellon came out fatty
against the enactment Of any soldier
bonus legislation at this time.
In Il letter TO Senator F~relinghuy-
sen, Secretary Mellon scored the
pending bonus III particular, and de-
clared that its enactment would In
volve grave danger Of renewed in
|flation, increased commodity prices
and unsettled business conditions"
The letter was III reply TO one from
Senator Fr~elinghuysen, who asked
the secretary what effect the pending
legislation would have upon the treas
ury.
Because of the five optional plans
provided in the bill II is difficult to
estimate the cost, said Mr.. Mellon. /.
q majority of the men select immedi-
ate adjusted service pay, the mini.
mum cost would be 81 ,5OO,0OO,0O0, he
estimated. Ii most Of them elected
adjusted service certificates, with pay.
mentS running over Il period Of 70
years, the cost would be $5,25O,OOO,OOO,
If the alternate plans were well dis.
tributed, the cost would be more than
$3,330,0OO,OOO lie believed.
These estimates, the secretary
pointed out, do not include the cost OF
administration, or the cost Of afford
ing vocational training, etc.
"Incomplete as they are" the letter
continues, these estimates show the
heavy obligation to which the pending
bill would commit the country. To
impose these vast additional liabilities
upon the treasury, particularly under
present conditions in industry and
commerce, would in my judgment ere
ate a serious situation"
Declaring that the deferred pay,
ment plan commits the treasury to a
"stupendous indeterminate liability
the secretary said that this feature OF
the bill tends to miSlead the people
into the belief that it would tighten
the burden on the treasury.
Instead" he continues, lit would
increase the war burden which the
American people have TO bear. 1t
would greatly swell the cost of gov
eminent and virtually defeat the adj
miniStration's plan of economy and re-
trenChment."
In opposing the bill Secretary Mellon
says that most Of the states have
passed individual bonus bills 'in vary
ing degrees Of liberality." He also
believes that the granting of bonuses
to a~ble-bOdied veterans would hamper
the aid that must be given by the gov
to the disabled men.
Pointing out that the government
must pay early maturities on the pub
lie debt amounting to seven n a hall
billion dollars, Of which five billions
fall in the same fiscal year, the sec
rotary said that passage Of the bill
would greatly embarrass the refundine
part of this debt. He continued:
1.-The market for outstanding govern
ment securities would be adversely
affected and the patriotic holders OF
Liberty bonds, instead Of looking for
ward to improved market conditions
would have to face the threat of fur
Their depression.
81 know Of no one thing, for exam
pie. that would so greatly strengthen
the market for Liberty bonds as the
assurance that congress had once ant
for all given up consideration OF 6
soldier bonus"
Referring to his recent statement tt
congress that there is grave danger
that the necessary expenditures OF
the government in the near future vii
exceed it's current receipts, thus leav
ing deficits to be met by new taxes
or further borrowing" the secretar.
adds:
Under the circumstances l believe
that in the best interests of the coun
try, action should be deferred upor
the soldier bonus. l would be derelic
in my duty to the country and to tn
soldiers themselves If / failed to give
this warning Of the inevitable finan
cial consequences Of the pending bill.
"Its direct consequences are ines
capable. They involve great DANCE
of renewed imitation, increased com
modify prices and unsettled business
conditions. The result would be seri
: Gus injury and loss to the whole com
I munity.
IL cannot bring myself to believ
that this would be adjusted com
$ pensation' for a service that was per
formed as the highest duty Of citizen
I ship and a sacrifice that car ever b,
I measured In terms of money"