The Birmingham age-herald., 1921-07-07
CONGRESS ASKED ID DEFER ACTION ON BONUS MEASURE.
No Time to Saddle New Bur- den of Billions on Depleted Treasury of the Nation,
 Says Mellon
By Associated Press


 defer action on the soldiers bonus bill
 This is not a time to impose sev- eral billion dollars of new liabilities on an already overburdened treas ury." the treasury secretary said to Senator Frelinghuysen. republican, New Jersey. In a letter, which was read in she Senate when the bonus bill was called up. The bill has al- ready passed the House, and the let ter was in response to a request from Senator Frelinghuysen for a state ment of the financial obligations which the bill would place upon the government.
 Underwood Attacks Bill | The letter was characterized by Senator Underwood, democratic lead CT, who after it's reading made an at tack on the bill, as strong, forcef,il and to the point" In passing the bill, the Alabama senator said, the republican majority would write in the copntrys history that men no longer sacrifice, but measure their services in dollars" Replying brief ly, Senator McCumber, republican, North Dakota, in charge of the bill. denied that any attempt was being made to measure the services of SOL diers of the World war in dollars
 Mir. Mellon estimated that the bill would cost the country between S1 500, 000, ,000 and $5,225,000 900; that 1t would swell the cost of govern ment and virtually defeat the admin- istrations programme of retrench- ment and economy" and that it would block all refunding opera tions on the national debt and de- press further the prices of Liberty bonds" These, he said would be "n- evitable direct financial conje- lquences,' adding that probable indi : rect results would be grave danger of renewed imitation, increased com : nodity prices and unsettled business conditions"
 Only Cash Considered All of his estimates the secretary 1 explained, were devoted to the cash payment sections of the bill. and took "no account of expenses of admin istration or possible cost of affordins vocational training, farm or home aid. or land settlement aid to vet. erans who elect such beneficiaries 2
 T should be derelict in my duty to the country and to the veteran themselves if failed to give this warning of the inevitable financial consequences of the pending bill" he | concluded. The result would be SC rious injury and loss to the whole community, and in the long run the veterans themselves would lose far more than they would gain l can not bring myself to believe that this would be adjusted compensation for service that was performed as he highest duty of citizenship and a sacrifice that can never be measured in terms of money"
 People MisIed
 Not the least disturbing feature, he | continued, was the bills plan to postpone actual distribution of funds until next year, which he said, tends to mslead the people into the belief that In some way the proposed pro gramme can be accomplished without | imposing a serious burden on tho country
 "It must inevitably increase the war burden which the people have to bear" he continued Tt couid De | financed only by adding to the bur den of debt and taxes under which ! the country is now staggering. How ever financed, no such sum could De taken out of the public treasury | without throwing correspohdi's load upon the whole people W the form of increased interest charges Increased taxes, and increased cost of living"
 Would Hamper Refunding | Cost of refunding the early matur lties of public debt, the secretaly ,, ' said. would be vastly increased ana | the refunding operations themselves l seriously embarrassed. Holders ot l Iiherty honds, he added, would nave to face the threat of further depres- 1 sion.''
 1t seems particularly inappro- 1 priate,'' he said to give present con l sideration to the measure when VIZ | still have before us the pressing problem of revising the internal tax laws, and finding sufficient revenues to meet the existing reqo'reinei.as of government. This problem mus. be dealt with in the midst of extreme
 and widespread industrial depres- | sion. These conditions affect not l only industry in our own country | but are world wide, and our past e~- perience furnished no sure guide as to their duration"
 | Continuing, the secretary said that | "our first concern, or course snouiu bc to make a full provision Tor the needs of disabled veterans.
 should Aid Disabled. 1 ITO that object he said The | country is pledged to give without stint of it's resources It would be unfortunate in the extreme. while We are still struggling with that prob 1 lem, to dissipate our resources in a l sweeping plan for cash payments to able bodied ex x-soldiers and sailors Senator Underwood described tho bill as political camouflage." The plan of "peddling out" cash payments l in $50 quarterly, he said, would not aid the soldiers. He challenged the i Republicans to propose lump sum payment which he said he would sup port and which he declared would provide stake" which might enable soldiers to get into business or buy a home. a
 ! The best service the republicans could render 'to the soldier and the country" Senator Underwood contin- ued would be to bring the country hack to stable financial and business conditions" when men would get a fair wage. s N Substitutes for the land settlement plan of the bill were offered by Sem ators Pittsman, democrat. Nevada and Borah, republican. Idaho. TWO HELD FOR MURDER