The New York herald., 1922-04-17
Continued from First Page.

Treasury officials have made a COM
putation OF the cost to various ele-
ments OF the national population OF
the scheme to pay each ex-service
man additional compensation based
upon his length OF service, whether 1t
be in the form Of cash. with bonds or
certificates calling for money equiva-
lent at maturity.
The computation worked out by
Treasury officials on the basis OF the
figures already given TO Congress by
Secretary Mellon and approved by
William Mccoy, the Government actu-
ary presents some very interesting
figures regarding the cost OF the bonus
to the farmers Of the country.
DistrIbutfon of Cost.
Between s22 and s24 will be added
to the taxes OF each farmer during the
fiscal year OF 1923 If bonus gratuities
are to be paid within the next year.
The increase Of taxes to farmers dur
ing the second and third years will be
SIT and S11 respectively In the
fourth year, when the Government
would be compelled to loan so per
cent. Of the face value of insurance
certificates provided by the bill passed
by the House. The average amount of
taxes to be paid by the farmer will be
$4S.
According to the formula worked
out by Actuary Mccoy. the amount to
be paid in bonus taxes by the rural
population during the next four years
will be as follows:
.ooo e,on 80 nno foo< enc mn
1924. 97.S9s 600 1926. ..... 27T.f2o.o00
These vast amounts represent tho
additional burdens in the form OF
taxes which the farmers, their work
ers and relatives would be obliged to
bear during the first four years of the
bonus payment. After 1926 and until
the date of maturity of the twenty
year insurance loan certificates the
cost Of the bonus to agriculturists
might be slightly less than the
amounts given above.
The computations which produced
these results were worked out on the
assumption that 20 per cent. of the
ex-service men will choose to accept
the certificate plan calling for CASH,
23 per cent. the farm and home aid
plan, per cent. vocational training
and 2 per cent. the land settlement
plan. The last named plan will be
dropped by the Senate Finance Com
mittee.
Full Cost Cannot he Determined.
The Treasury officials who have an
alyzed the bonus scheme upon which
they estimate the cost TO the various
groups of citizens say it is impossible
to figure in advance the full cost to
the Government of the bonus. No
exact estimate will be possible until
the form OF any bill that may be
passed is known.
But they make it quite clear that
there will be no way for the farmer to
escape paying his part of the bonus
bill. Every method OF computation
shows that more taxes must be loaded
on the shoulders of the farmer to
raise the money to pay the bonus.N
Months ago farmers began protesting |
against the high taxes that continued
after the armistice.
Returns from the Treasury Depart
nent show that in some sections of
the country farmers have been un-
able to pay thsir taxes. From every
section or the country protests have !
come against the continuance OF the |
present rates OF taxation and a de-
mand for greater economy in the adj
ministration OF the Government, so as
to permit reductions.
Treasury officials feel justified in
asserting that IL a bonus bill is passed
there not only will be no reduction in
taxes for some years, but substan-
tial addition TO those the farmer now
is compelled to pay.
The farm or rural population con-
stitutes slightly more than l5 per
cent. Of the entire citizenship. There
fore the farm or rural population must
pay 45 per cent. of the bonus bill re-
gardless of the form 10 takes.
Treasury officials have shown that
the total cost of the bonus TO the
country would be not less than "a 4,5O0.-
100000, and is moro likely to exceed
S5,000.000,000 when the cost of admin
istration is added.
Estimate for -Four Years.
Under Secretary MELONS estimates
The bonus would cost at least $685.
$4,000 during the fiscal year OF 1928.
which begins on July / next. In 1924
the cost would be s216,440 900. In
1925 the bonus bill would be s12S,O13,-
600. In 1926 the amount that must
be raised by taxation to pay the bonus
charges would be 1915, 900.
Upward OF $4,000, 100000 must be
raised to redeem bonus certificates at
maturity. And as per cent. OF the
amounts necessary each year will
have to be contributed by the farmer
In the form of additional taxes.
In commenting on this phase of the
bonus scheme Actuary Mccoy said:
1T Is plain. therefore, that the rural
clement of the population will be
obliged to support nearly one-half of
the cost of the bonus"
This cost applies TO the entire rural
population of the country, which in
cludes 100000 workers and hands.
100000 farm owners and managers
and more than 35,Oo0.o00 residents OF
small towns directly dependent for
their existence upon the farmer.
The farm managers and owners
naturally pay the great bulk OF taxes
levied IN the rural regions. Consc-
quently the burden OF increased taxes
due TO bonus legislation VIII be upon
their shoulders.
Effect In other Directions.