The New York herald., 1922-02-18
IT SPEAKS FOR 5000
Declares Measure Would
Greatly Handicap Business
at a Serious Time.
GRATUITY CALLED CURSE
American Defense Society
Tells President Harding 1t
Opposes Largess.

Both the Merchants Association and
the American Defense Society made
! formal protest yesterday against bonus
legislation. The first named organi-
zation telegraphed its views on the
subject to Senator McCumber and
Representative Fordney. The defense
society sent its protest to President
Harding.
"TEe Merchants Association, with a
membership of 5000 business houses
in the city of New York, representing
all lines of industry and trade. ear
| nestly protests against the passage
| by Congress of legislation providing
for the payment of cash bonus to
ex-service men. We believe that a
general cash bonus is unnecessary,
that it would be extremely expensive
to the Government At a time when
the country is struggling under q bur-
den Of taxation which, constitutes a
very serious handicap upon business.
1t would be national calamity to
impose this new and needless burden.
This association is strongly opposed
to any additional taxation for the pur-
| pose stated, especially to n cumulated
! taxation of selected interests which in
many instances would be seriously op-
pressed by such an excessive tax bur-
den placed upon them.
The objections to a bond issue are
| equally obvious. The nation must soon
undertake huge refundine operations,
| which would be made extremely diff
! cult by the issuance of a large body
| of competing bonds.
Would Affect Liberty Bonds.
| Interest rates would necessarily be
| sravely affected and forced upward
! which would result in increased loss
upon the great volume of Liberty bonds
owned by the millions of people.
Moreover, new issues of bonds TO the
extent of billions of dollars would with
| draw from business pursuits a vast
amount of capital urgently needed FOR
business purposes, which withdrawal
would cause an enforced contraction of
business undertakings and still further
postpone the return Of prosperity
In its treatment of former service
men the Merchants Association believes
that the Government should be not only
just but generous 1t advocates ample
appropriations efficiently administered
for the care of men who have suffered
/ physical injury as "A result of the war
and for the care of persons who have
been made dependent as a result OF the
war. 1t also favors adequate vocational
training to enable service men who de-
sire to help themselves to do so.
1T believes that the distribution of
cash would not only be n staggering
blow to the business of the country but
would prove a curse instead of a bless
! ing to the recipients of such a gratuity.
Individually it would not be a sufficient
amount to supply n basis for business
activity and in many cases it would be
spent unwisely and would discourage and
defer self-help. Unemployed ex-service
men need work. not gratuities. They
can be best helped by return of general
Industrial activity and by such legisa-
tion as will tend to restore confidence
in the worlds stability and as will con-
tribute to general increase in industrial
employment"
Would Help injured First.
The American Defense Society's mes
sage read:
The President. the white House. Wash
ngton. ID. c.:
IAN indiscriminate distribution OF
largess TO soldiers after war has
been practiced so often i'm the past
in so many countries and been pro-
ductive of such unsatisfactory results.
has so conspicuously failed to accom-
plish any desirable end, that its pro-
priety in any given case can be ques-
toned without fear of accusation OF
niggardliness or want or appreciation
either of their valor or OF the graft
tude of their country. which is their due.
THE case OF those disabled to any
degree by their service to their land
stands on a different footing. Every
resource available should be devoted ia
the care and welfare of the latter. Yet
by as much as indiscrminate reward is
apportioned among all who served, Gy
so much will IL be the more difficult
financially to properly protect and suit.
ably sustain those who actually need as.
sistance. Had the countrys resources
not been squandered by those in power
during the war it might have faced
the double expenditure with equanimity
and cheerfulness. IL there be cause
! OF complaint on the part of any able
bodied and uninjured ex-service man al
not receiving a gratuity, let him lool
to those who expended in a year and
a half what would have sufIiced to con.
duct war for three years and i'm
poverished the land as the authors oi
the situation.
"All resources which can be deemed
available for such uses should be ex.
pended in the care Of those physically
or mentally injured in the war ant
who. we regret to say. are not receivinl
their just need OF care and protection
but are being made use OF and ex
plotted for the advantage OF self-inter'
ested persons. are suffering from ig'
norance and supineness. Their care. vo'
cational training or other assistance
should be placed in charge of theil
own organizations. with adjunct or su
pervisory boards appointed from the
highest class of citizens.
AMERICAN DEFENSE SOCIETY, by CHARLES
STEWART DAWSON. Honorary Chair
man. Board OF Trustees