New Britain herald., 1921-07-12
President Harding Says Such Action Would "Imperil Finan- cial Stability Of Our
 Country"
GOVT. MUST UNDERTAKE
 NOTHING IT CANNOT DO
Chief Executives Second Speech to Congress Gives His Reasons in De- tail for Opposing, at This Time, Any Plan for Adjusted Compensation for Men Who Fought in World War.

Washington, July 12-Enactment at the present moment of adjusted ccm- pensation for veterans of the World War would greatly imperil the finan- cial stability of our country, Presl- dent Harding told the senate today in the second address he has made since his administration went into power.
 MT. Harding said, in part:
 There has come to my attention the pending unfinished business be- fore the senate and it is an imperative duty to convey to you the probable effect of the passage at this time Of the proposed act, providing for ad- jlsted compensation to our service men in the World War. If this measure could be made effective at the present time without disaster to the nations finances and without hindrance to imperative readjustment of our taxes it would present an en- tirely different question than that which is before you. In personal as , well as public manner, which ought to be a plight of good faith, I have commended the policy of generous treatment for the nations defenders not as a part of any contract, not as d but as a mark of the nations grati- tude.
 Every obligation is Co the disabled and dependent. In such reference as has been made to general compensa- tion there has been a reservation as to the earliest consistent time for such action if it is taken. If without such reservation however, a modified view would be wholly justifiable at the present moment because the enact ment of the composition bill in the midst of the struggle for readjustment and restoration would hinder every eff fort and greatly imperil the financial liability of our country. More this menacing effect to expend billions graduities will imperil our capacity to discharge our first obliga- tions to those we must not fail to aid.
 Our government must undertake no obligation which it does not in- tend to meet. No government fiat will pay our bills. The exchanges of the world testify today to that erroneous theory. We may rely on the sacrifices of patriotism in war, but today we face markets, and the effects of sup ply and demand and the memorable laws of credits in time of peace.
 Our greatest necessity is a return to the normal ways of peace activi- ties A modest offering to the mil lions of service men is a poor pal. liative to more millions who may be out of employment. Stabilized finance and well established confidence are both essential to restored industry and commerce.
 The slump which is now upon us is an inevitable part of wars after math. It has followed in the wake of war since the world began. There was the unavoidable readjustment, tn, inevitable charge-off, the unfailing at tendance of losses in the wake of high prices, the memorable def1ation which imitation had preceded.
 Tt has been wholly proper to seel tc apply government relief to mini mize the harships, and the govern ment had aided wherever possible and is aiding now, but all the specia acts ever dreamed of, all the particu lar favors ever conceived will no avoid all the distresses nor ward of all the losses. The proper menta state of our people will commit u resofutely and confidently to our tasks tion and expenditure will contribut to that fulfillment of the order. Tn only sure way to normalcy is over tn paths nature has marked throughou all human experience"
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