New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-13

Following is tne Iull tHAC o1 lesl-
dent Harding's address to the Senate:
"There has come to my attention the
pending unfinished business before the
Senate, and it is an imperative duty to
convey to you the probable effect OF
the passage at this time of the pro-
posed act providing for adjusted com
pensation to our service men IN the
World War If this measure could be
made effective at the present time with
cut disaster to the nations finances
and without hindrance to imperative
reimbursement of our taxes 1T Would
present an entirely different question
from that which is before you. In
personal as we'll as public manner:
which ought to be a pledge OF good
faith. have commended the policy of
generous treatment of the nations de-
tenders, not as a part of any contract,
not as the payment of debt when is
owing. but as mark of the nation
gratitude. Every obligation is to the
disabled and dependent.
an such reference as has been maze
10 general compensation there has been
: reservation as tt the earliest con-
sistent time for such action II ~ IS
taken. Even without such reservation,
however. modified view would be
wholly Unsuitable ct the present mo-
ment. because the enactment OF the
cornrensa ton bill in the midst OF the
struggle for read justment and restora-
ton would hinder every effort and great
lv ;mneru the financial stability OF our
country. More, this menaclng eHort 10
cxpend billions in gratultle5 VIII I'M
veril our capacity TO discharge our Il isl
ALLEGATIONS to those we must not IAN 10
aid.
linn ediatc Problem
For Senate Handling
AZ am addressing the Senate directly
because the problem is lmmed1aIeiy
vours. as your unfinished BUSINESS Dut
fba executive branch of the government
o,,-es II To both houses of Congress and
70 the country frankly to state Sne
difficulties we daily are called upon 10
meet and the added peril TINS measure
would bring. r. +.o
our land has is share OF t I'M
financial chaos and the -, lndustrlal "a
preston of the world. we llteie ~ ne the
ed the growth of indebtness or une
Units of expenditure during the wal
hecauge we could not stop to count
tbe cost. Our one thought then was
+he winning of the war and the sur,
viva1 Of the nation. We borrowed ano
Observation-Disclosures TO the nation ana
the government to other governments
and 10 those who served the natloIi
With little thought of settlement
was relatively easy then' Deca0'S
national life was at stake. :,
an the sober aftermath we face the
ordar If reason, rather than act amlo
INC nassions of war, and IN our owl
land and the world we are facing
nroblems never solved before. lnert
Can be no solution unless we 1ace
| the grim truths and seek TO SOY.
| them in resolute Devotion TO uues
| After survey of more imam lou
mouths. contemplating, conui. ..er.
witch would stagger all of us were
il not for our abiding faith in America
I ann fully persuaded that three thlngs
/ 80 essential to the very beginning
/ of the restored order of things.
/ Impossible To Fix
Any Precise Figure
"These are the revisions, Including
radnction. of our internal taxation, the
refunding of our war debt, and the al
iustment of our foreign loans.
these problems before adding to oo'
Treasury any such burden as is con
formulated in the pending Dill.
"lt is unthinkable to expect a ousl
,ase revival and the resumption of tine
normal ways of peace while main
tanning the excessive taxes OF war
II 10 unite as unthinkable to reduce
our tax burdens while committing oul
treasury TO add an additional obIga
tion which ranges from three to hv'
Millions of dollars. The precise figure!
no one can give If it is concelvabl!
true that only two hundred millions
wear will be drawn annually from tn'
Treasury in the few ears immedlatel.
before us. the bestowal IS too neon
saonential to be of real value to the
nafion's defenders; and. if the exercise
of the option should call for cash run
ning into billions, the depre ssion IL
fnance and industry would be 81
marked that vastly more harm thar
good would attend
"Our government must undertake NJ
obligation which it does not intend tt
meet. No government fiat Will pa.
our bills. The exchanges of the worl'
testify to-day to that erroneous theory
j We NAV rely on the sacrifices of patri
otism in war, but to-day we rae
MARKETS and the effects of supply an
demand and the inexorable laws o
credits in time Of peace.
"At the very moment we are obllge'
m nav So per cent interest for govern
wont short time loans to care for GU
Heating Indebtedness, rate on govern
ment borrowing, in spite of tax exemp
tion. which ought to prevail IN privat
transactions for the normal lnteres
charges in financing our industry an
commerce. Definite obligations amount
ing to s7,5oo.000, 900 in War Saving
4 caTti6eates. Victory bonds and eertifi
anyar;no floating indebtedness