The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-07-12
BONUS PERIL
TO STABILITY
SAYS HARDING
President Warns Against Pas
sing Adjusted Compensa-
ton Bill Until Country S Fin
ancial Problems Settled.
POINTS OUT DANGERS
(By Associated Pressl

WASHINGTON, July 12.-Enac'-
ment at the present moment of ad-
justed compensation legislat tion for
veterans of the World war would
greatly imperil the financial stability
of our country" President Harding
told the senate today in the second
address he has made to that body dur
ing his administration.
Every obligation is to the disabled
and dependent. the president said,
and the executive branch owes it 10
the country frankly to state the diff
ficulty we daily are called upon to
meet and the added peril this meas
ure would bring"
This menacing effort to expend
billions in gratuity will imperil our
capacity to discharge our first obliga-
tions TO those we must not fail to
aid" he said.
Little Needed Cost
"Our land has its share of the
| financial care and industrial depres-
! sion of the world" the president said.
I'VE little needed the growth of in
| debtedness or the limits of expendi-
| lures during the war because we could
! not stop to count the cost Our one
! thought then was the winning of the
war and the survival of the nation
| After a four months survey of con-
| ditions, which would stagger all of US
were it not for our abiding faith in
! America, the president said he was
| fully persuaded that three things were
! essential TO restoration.
Must Settle Problems
These are" he continued, 'the re-
visions in our internal taxation, in
! Guiding reduction, the refunding of our
! war debt, and the adjustment of our
foreign loans.
! 1T is vitality necessary to settle
| these problems before adding to our
| 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 re-
duce tax burdens while committing
the treasury to additional obligations
ranging from three to five billion
dollars"
The precise figures no one can
give" he said IF it is conceivably
true that only 5000, 900, 600 a year will
be drawn annually from the treasury
in the few years Immediately before
us, the bestowal is too inconsequential
to be of real value to the nations de-
| fendents, and if, the exercise Of the
option should call for cash ranging
into billions, the depression in finance
in -
that vastly more harm than good
would tend"
Points to Obligations.
NO government fat will pay our
bills" the President said The. ex-
changes of the world testify today TO
that erroneous theory"
Mr.. Harding pointed out that the
government now was obliged to pay
54 per cent interest on short time
loans and that definite obligations of
$7,500,000 are to mature within two
years.
"Overburdening of the treasury now
means positive disaster in years i'm
mediately before u.s." he said
"Merest prudence calls out in warn
ing"
The world Slump" was inevitable
as an aftermath of the war. the presi-
dent said. adding that "the only sure
way to normalcy is over the paths ma
ture has marked throughout all hu.
man experience"
The executive branch, he said, was
driving toward that decreased expen-
diture. which is the most practical as
surance of diminishing taxation"
Pledges Economy
81 can make you no definite prom
Use in figures today" he said, but
can pledge you a most conscientious
drive to reduce government cost by
many millions. II would be most dis
, couraging to those who are bending
their energy to save millions to have
, congress add billions TO our burdens
at the very beginning.
, Even were there not threatened
| paralysis of our treasury. with its ia
! tai refleXes on all our activities which
concern our prosperity, would it not
be better to await the settlement of
our foreign loans?"
.