Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-07-13
TREASURY HEAD
OPPOSES BONUS
Mellon Says Bill Is Out of Line
With Economy.
WOULD HAVE ACTION HALTED
Says II Would Not Compensate for
Service Performed as Highest
Duty Of eitizenship-Won't
Measure in Money.

Washington. July T.-Secretary II
the Treasury Mellon came out fatly
against the enactment If any soldier
bonus legislation at this time.
In a letter TO Senator Frelinghuy-
sen. Secretary Mellon scored the
pending bonus in particular. and de-
clared that its enactment would in
volve grave danger of renewed In
( hation, Increased commodity prices
and unsettled business conditions.
The letter was In reply 20 one from
Senator Frelinghuysen. who asked
the secretary what effect the pending
legislation would have upon the treas
ury.
Because Of the five optional plans
provided in the bin il is difficult TO
estimate the cost. said Mr. Mellon. II
a majority of the men select immedi-
ate adjusted service pay. the mini
mum cost would be Sl,5OO.OOO.OO0. he
/ estimated. If most Of them elected
adjusted service certificates, with pay
ments running over a period Of -
years. the cost would be S5.2jO,OOO.O00.
II the alternate plans were well dis
tributed. the cost would be more than
/ S3.33O.OOO,OOO. he believed.
Obligation Would Be Heavy.
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 10 which the pending
I bin would commit the country. To
I impose these vast additional liabilities
upon the treasury, particularly under
/ present conditions i'm industry and
commerce. would in my judgment ere
ate a serious situation"
Declaring thar the deferred pay
ment plan cOmslits the treasury 20
"StupendOus indeterminate liability"
the secretary said than this feature Of
the bill tends To mislead the people
into the belief that il would tighten
the burden on the treasury.
Instead" he continues. 1T would
/ Increase the war burden which the
/ American people have 20 bear. IL
would greatly swell the cost II gov
eminent and virtually defeat the adj
miniStrati0n's plan Of economy and re-
/ trenchment."
In opposing the bin Secretary Mellon
says that most of the states have
passed individual bonus bills Gin vary
ing degrees Of liberality" He also
believes that the granting Of bonuses
to able-bOdied veterans would hamper
the aid that must be given by the gov
eminent To the disabled men.
Pointing out that the government
must pay early maturities on the pub
Tic debt amounting 70 seven and half
billion dollars, Of which five billions
l fall in the same fiscal year the sec
rotary said that passage If the hin
would greatly embarraSS the refunding
part Of this debt. He continued:
'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.
Il know Of no one thing. for exam
ple that would 50 greatly strengthen
the market for Liberty bonds as the
assurance that congress had once and
for all given up consideration Of
soldier bonus"
Fears Deficits.
Referring To his recent statement 10
congress that "there Is grave danger
that the necessary expenditures Of
the government In the near future win
exceed its current receipts. thus leay-
ing deficits To be met by new taxes
or further borrowing" the secretary
adds:
"Under the circumstances I believe
that IN the best interests of the cOun-
try. action should be deferred upon
the soldier bonus. I would be derelict
i'm nv duty TO the country and 90 the
soldiers themselves If failed Ia give
this warning Of the inevitable finan-
ciaI consequences Of the pending bill
. cts direct consequences are ines
capable. They involve great danger
OF renewed imitation. increased COM
modify prices and unsettled business
conditions. The result would be seri-
Gus injury and loss 10 the whole con-
munity. and In the long run even the
veterans themselves would lose far
more than they would gain.
Il cannot bring myself 10 believe
that this would be adjusted COM
pensation' for a service that was per-
formed as the highest duty OF citizen
ship and a sacrifice that can never be
measured In terms Of money