Omaha daily bee., 1921-07-13

Is Asked to
Delay'Bonus
Harding, in Address Before
Senate, Declares Passage
At This Time Would
Imperil Country.
! Three Things Needed
(By The Associated Press }

lmperil the financial stability CT oul
country" President Harding told ths
senate today in the second addres:
he has made to that body during hi:
administration. :.
Every obligation is to the disabled
and dependent. the president said
and the executive branch owed it tc
the country frankly to state tho
difficulties we daily arc called upor
10 meet and the added peril this
measure would bring" -
This menacing effort to expend
billions in gratuities would imperi
cur capacity to discharge our first
obligations to those we must not fail
TO aid,' he said.
~ Three Things Necessary.
After a four months survey ol
conditions, (which would stagger al
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.
! These are" he continued, "the re-
vision, including reduction of our in
tcrnal taxation, 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 i'll the pending (soldier
bonus) bill"
Mr.. Harding said it was "unthnk-
able" to expect business revival while
maintaining "the excessive burdens Of
war; and quite as. unthinkable" to
reduce tax burdens while committing
the treasury to additional obligations
ranging from $3,000,000,OO0 to $5,OOO,-
O00,OOO."
Would Overburden Treasury.
"If the exercise OF the option
should call for cash running into
billions, the depression in finance
!, and industry would be so marked
that vastly more harm than good
would attend
"Overburdening of the treasury
now means positive disaster in years
Immediately before us" he said.
"Merest prudence calls out in warm
ing" i.
Mr.. Harding said he would not
urge recommittment of the compen-
sation bill to committee if II "bore
s@the merest suggestion OF neglect or
hint of national ingratitude." !,
II want to emphasize the sugges-
tion," he said, that the accomplish
ment of the major tasks 10. which
you were asked to sit in extraordi-
nary session will have a reassuring
effect on the entire country and
speed our resumption of normal ac-
tivities and their rewards which tend
to make prosperous and happy
people"
When President Harding con-
cluded his address Chairman Pen
rose of the finance committee moved
that the bonus bill be recommitted
TO that committee as urged by the
executive.
Text of Message.
The following is the text OF the
presidents address:
Mr. President and gentlemen OF
the senate: There has come to my
attention the pending unfinished bus
mess before the senate, and it is an
imperative duty to convey to you
the probable effect of the passage at
this time of the proposed act, pro-
viding for adjusted compensation to
our service men in the world war.
IT this measure could be made effec-
tive at the present time without dis
aster to the nations finances and
without hindrance to imperative re-
adjustment cf our taxes. it would
present an entirely different question
than that which is before you. In
personal as well as public manner
which ought to be plight OF good
faith | have commended the policy
CT generous treatment of the nation S
defenders, not as part OF any con-
Assact, not as the payment of debt
which is owing, but as mark OF the
nations gratitude.
Every obligation is to the disabled
and dependent. In such reference
as has been made to general COM
pensation, there has been a reserva-
ton as to the earliest consistent time
for such action if it is taken. Even
without such reservation. however,
a modified view would be wholly
justihable at the present moment,
because the enactment OF the con-
pensation bill in the midst Of the
struggle for readiustment and
restoration would hinder every ef-
fort and greatly imperil the financial
stability of our country. More, this
menacing effort to expend billions
in gratuities will imperil our eapac-
ity to discharge our first obligations
to those we must not fail to aid.
Problem Is Urgent.
am addressing the senate direct
/. " because the problem is immedi-
ately YOURS, as your unfinished busi-
ness. but the executive branch of
the government owes it to both
houses of congress and to the coun-
try frankly to state the difficulties
we daily arc called upon to meet and
the added peril this measure would
bring.
Our land has its share OF the finan-
cial chaos and the industrial depres-
sion of the world. We little needed
s the growth of Indebtedness or the
Limits of expenditure during the war
Wbecause we could not stop to count
~rthe cost. One thought then was the
winning OF the war and the survival
OF the nation. We borrowed and
Observation-Disclosures to the nation and
the government to other govern
ments and to those who served the
nation, with little thought of settle
ment. 1t was relatively easy then,