Omaha daily bee., 1921-07-07
Bonus Bill
Is Opposed
By Mellon
Secretary of Treasury Warns
OF Grave Danger of I'm.
mediate Deficit in Gov.
crnment Funds.
Would Add Tax Burden

Washington, July 6.-With a
Warning that there is grave danger
OF an immediate government deficit,
Secretary Mellon asked congress to-
day to defer action on the soldiers
bonus bill.
This is not time to impose sew
eral billion dollars OF new liabilities
Oh an already ver-burdened treas
nry, the treasury secretary said to
Senator Frelinghuysen, republican,
New Jersey, in letter which was
read in the senate when the bonus
bill was called up.
The bill has already passed the
house and the letter was in response
to a request from Senator Freling-
huysen for statement OF the finan-
e'al obligations which the bill would
place upon the government
The letter was characterized by
Senator Underwood, the democratic
leader, who, aitet its reading, made
an attack on the bill "as strong,
4sforcefM and to the point" In pass
ing the bill the Alabama sepator said
the republican majority would write
IN the country's history that men no
q longer sacrifice. but measure their
service in dollars.
Replying briefly, Senator McCum-
Der, republican, North Dakota, in
charge OF the bill, denied that any at
tempt was being made to measure
the services of soldiers of the
World war in dollars.
Means Huge Expense.
Mr.. Mellosl estimated that the bill
would cost the country between a
billion and half and five and a
quarter billion dollars, that it would
swell the cost OF government and
virtually defeat the administration
program of retrenchment and econ
omy" and that it would block "all
refunding operations on the national
debt and depress further the prices
on Liberty bonds
These, he said, would be 'inevita-
bic direct financial consequences"
adding that probable indirect re-
suits would be grave danger OF
renewed initiation, increased com.
modify prices and unsettled business
conditions"
All of his estimates, the secretary
explained, were devoted merely to
the cash payment sections of the bill
and took mo account or expenses of
administration or possible cost OF |
affording vocational training. farm or
home aid, or land settlement aid to
veterans who elect such benefit.
Secretary Gives Warning.
II should be derelict in my duty
TO the country and to the veterans
themselves if l failed to give this
warning of the inevitable financial
consequences of the pending BILL" he
concluded. "The result would be Sc
rious injury and loss to the whole
community and i'll the long run the
veterans themselves would lose lar
more than they would gain. ! cam
net bring myself to believe that this
would be adjusted compensation for
q service that was performed as the
highest duty OF citizenship and a
sacyi6ce that can never be measured
il Srms of money.
,Eot the least disturbing feature,
h. continued, was the bills plan to
p> rone actual distribution of funds
until next year which" he said,
"tends to mislead the people into the
bel;cf that IN some way the proposed
program can be accomplished with
out imposing serious burden on
the country
Would Increase Burden.
at must inevitably increase the
" ar burden which the people have to
bear he contended. at could be
financed only by an addition to the
burden of debt and taxes under
which the country is now staggering.
However financed, no such sum
could be taken out OF the public
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