Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1921-07-15
TREASURY HEAD
OPPOSES BONUS
Mellon Says Bill Is Out of Line
With Economy.
WOULD HAVE ACTION HALTED
Says 1t Would Not Compensate for
Service Performed as Highest
Duty of Citizenship-Won't
Measure in Money.

Washington, July 7.-Secretary Of
the Treasury Mellon came out tiatly
against the enactment of any soldier
bonus legislation at this time.
In a letter to Senator Frelinghuy-
sen, Secretary Mellon scored the
pending bonus in particular, and tie
clared that its enactment would in
volve grave danger of renewed in
fiation, increased commodity prices
and unsettled business conditions"
The letter was in reply to 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 ia the bill it is difficult to
estimate the cost, said Mr.. Mellon. If
majority of the men select immedi-
ate adjusted service pay, the mimi
mum cost would be $1,5O00O0,0O0, he
estimated. Il most of them elected
adjusted service certificates, with pay
ments running over a period of 20
years, the cost would be $5,2500O0, 900.
If the alternate plans were well dis
tributed, the cost would be more than
$4,000 100000, 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 to which the pending
bill would commit the country. To
impose these vast additional liabilities
upon the treasury, particularly under
present conditions in industry and
commerce, would in my judgment Gre
ate serious situation"
Declaring that the deferred pay
ment plan commits the treasury to
"stupendous indeterminate liability"
the secretary said that this feature of
the bill tends to mislead the people
into the belief that it would tighten
the burden on the treasury.
Instead" he continues, sit would
increase the war burden which the
American people have to bear. 1t
would greatly swell the cost of gov
eminent and virtually defeat the adj
ministration's plan of economy and re-
trenchment."
In opposing the bill Secretary Mellon
says that most of the states have
passed individual bonus bills sin 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
lie debt amounting to seven and a half
billion dollars, of which five billions
fall in the same fiscal year, the Sec
rotary said that passage of the bill
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.
81 know of no one thing, for exam
pie that would so greatly strengthen
the market for Liberty bonds as the
assurance that congress had once and
for all given up consideration of a
soldier bonus"
Fears Deficits.
Referring to his recent statement to
congress that "there is grave danger
that the necessary expenditures of
the government in the near future will
eyceed it's current receipts, thus leav-
ing deficits to be met by new taxes
or further borrowing" the secretary
adds:
"Under the circumstances / believe
that in the best interests of the coun-
FRY. action should be deferred upon
tbe soldier bonus. I would be derelict
in my duty to the country and to the
soldiers themselves if / failed to give
tlis warning of the inevitable finan-
cial consequences Of the pending bill.
OTIS direct consequences are ines
canable. They involve great danger
IF renewed initiation, increased COM
modify prices and unsettled business
conditions. The result would be seri-
ous injury and loss to the whole COM
munity. and in the long run even the
veterans themselves would lose far
moro than they would gain.
II cannot bring myself to believe
that this would be adjusted COM
nensation' for a service that was per-
formed as the highest duty of citizen
shin and sacrifice that can never be
maasured in terms of money"