Evening star., 1921-07-12
States the Situation
i'm Person to
Legislators.
SEES OBLIGATION
TO SERVICE MEN
Fears Effect of Mod
est Aid Would Be
! Peril to Jobs.

Peril to Jobs.
Enactment at the present moment
~ adjusted compensation legislation
for Veterans of the world war woulo
"9reatJy imperil the financial staoiiity
of orr country" President Harding
told the Senate today in the secoau
iaddress he has made to thaI oouS
during his administrator. ,,,,h,.a
Every obligation is to the dlsaoleo
and dependent, the President said, ana
fhe executive branch owed 1t to the
country frankly to state the difncui-
ties we daily are called upon TO meet.
and the added peril this measure
would bring"
Indebtedness Little Needed.
sour land has it's share of the imam
eial chaos and industrial depression
of the world" the President said we
GttIe needed the growth of indebted
ness or the limits of expenditure our
ing the war because we could not stop
ITO count the cost. Our one though.
then was the winning OF the war ana
2he survival Of the nation
After q four-month survey OF con-
!kitions (which would stagger all OF us
tSvere It not for our abiding 1alth IN
{Nmerica," the President said he was
FULLY persuaded that three things were
Essential to restoration.
These are" he continued. the re-
tyision. including reduction. OF our IN
<ernal taxation, the refunding OF our
f~ar debt and the adjustment OF our
lSoreign loans.
Problems Must BE Settled.
sTt is vitality necessary to settle
Treasury any such burden as is con-
templated in the pending (soldier
bonus) bill"
Mr.. Harding said it was 'unthink-
able" to expect business revival while
maintaining "the excessive taxes Of
war" and quite as unthinkable to
! reduce tax burdens while committing
I the Treasury to additional obliga-
i tions ranging from three to five
( billion dollars"
Mr.. Harding pointed out that the
i government now was obliged to pay
5A per cent interest on short-time
| loans, and that definite obligations
/ of seven and a half billions are to
mature within tive -SsNrs following.
"Overburdening of the Treasury
Immediately before us" he said.
Applauded In Chamber.
The President arrived at the Cap
itol a few minutes before 2 o'clock
! and went to the Presidents room i'm
n,ediately off the Senate chamber.
After a quorum of the Senate had
been called. Senator Lodge, the re-
President appoint a committee to
escort the President to the Senate
chamber.
Vice President Coolidge appointed
Senator Lodge and Senator Underwood
of Alabama. the democratic leader. AS
the President entered the Senate
chamber the members of the Senate
and the occupants Of the gallery arose
Tnd apDlauded. The applause was gen.
eral on the democratic side of the
a fIyn m ho iooy
: side, and lasted for about minute.
Galleries Are Crowded.
There were no special cards of ad-
: mission issued for the Senate gall
leries, although the news had spread
! around that the President would
i come to the Capitol to address the
! Senate at o'clock. The galleries
and many persons were standing in
{ the corridor. Mrs. Harding occupied
: a front row seat in the gallery.
Just before the President made his
appearance In the chamber the Vice
President laid before the Senate the
soldier bonus bill. as the unfinished
business, which caused a ripple Of
! laughter to pass through the cham
ber, as 1t was known that the Presi-
dent had come to urge postponement
of action on the bonus bill.
The President read his address to
the Senate slowly and deliberately.
1t was listened to with close atten-
ton by the senators and by many
members of the House who had come
over to the Senate to hear the Presi-
dent.
Senators Listen Carefully.
Among those in the galleries was
William G. McAdoo. former Secretary
OF the Treasury.
The President finished his address
at 2:20. The conclusion was the
scene for another outburst Of ap-
plause. and the whole assemblage
stood while Senator Lodge and Sem
ator Underwood escorted the Presi-
dent from the chamber
The Presidents address was given
the most respectful attention by the
, senators. He proceeded from begin
ming to end. however, without inter-
ruption or applause
Almost Immediately after the con-
clusion of the speech, Senator PEN
rose, chairman of the finance commit
tee, moved to recommit the bonus bill
to the Senate finance committee.