Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-03-13
MELLON AGAIN RAPS
NEW BONUS MEASURE
Says Bill Would Mean $780,.
600, 900 Liability for Trsa-
sury by 1925.

900, 900 Liability for Trsa-
sury by 1925.
Baltimore Sun.
Washington. March 12.-In a letter
to Chairman Fordney, OF tho Ways
and Means Committee. made public
today, Secretary OF the Treasury Mel
Insurance Certificate Bonus bill Just
framed by the Republican majority OF
the committee. He declared the bill
involves "a dangerous abuse OF Gov
eminent credit" and advises the lead
crs of his party I'm Congress that If
there is to be a bonus. they should
face the music and provide the funds
In straightforward way.
1T Is clear from these estimates"
Mr.. Mellon said after reviewing the
measure. that whatever form the SOL
diers' bonus may take. It viii cost from
5000. 100000 to $500. 100000 for the
next three or four years. and may In
volve continuing liabilities thereafter
OF over S200,000,000 year until 1943."
Having said early in the letter that
the. present bill presumably had been
framed with a view of reducing the
apparent cost to the Government. st
Mr.. Mellon said later:
1T liz impossible to avoid the cost. II
a bonus is TO be. adopted, and 1t is
both dangerous and unwise TO attempt
to avoid It for the time being by
throwing the burden upon the banks
of the country. and piling up for the
Treasury an accumulated liability
which. in 1925, may amount to over
5000 900 900.
There Is no way by which the
American taxpayer can avoid the bur-
den, and II a bonus il to be imposed II
| is far better for all concerned that II
be placed upon direct and definite
basis and paid for each year out OF
current revenue. To do this at the
present time viii necessarily mean the
imposition of additional taxes for the
purpose"
The letter to Mr.. Fordney is under
date of yesterday. II is in reply to one
sent Mr.. Mellon by the Ways and
Means Committee March s, stating
that the committee would be glad to
have his comment upon the bill that
has been framed. The committee
probably had no idea what II was in
viting. For regardless OF the merits
of the bonus or this particular bill
the Mellon letter Is one OF the most
devastating attacks upon proposed
legislation that ever has come from
the Treasury.
known since the beginning OF TIL,
Harding administration as an OPP
ponent Of a soldier bonus. Mr.. Mellor
devotes no time in the letter TO dis
cussion of the basic question. II,
deals solely with the character Of tn,
measure that the Republicans Of tn,
Ways and Means Committee framed
after weeks OF uncertainty; show,
what IL would cost and what the cos
would mean TO the Government; an,
virtually tells the leaders of HIS part,
in Congress that the method OF meet
ing the cost is a moral fraud upo,
the country.
What effect the Mellon letter VII
have upon the action Of the Ways an,
Means Committee and the House /
doubtful, for both have gone far Il
burning bridges. But IL is certain I
impress the Senate profoundly. An
should the Senate pass the bill. il is a.
most impossible 10 see how Preeiden
Harding could sign Il. He has hinte
at vetoes. With such a statement fror
his Secretary Of the Treasury as III
letter TO Mr.. Fordney, failure OF III
president to veto the bin would B
well-nigh inconceivable.
Mr.. Mellon begins his letter by re-
calling 10 Chairman Fordney that
deficit Of 100000. 900 in this and III
next fiscal years Is probable. and ths
IN his letter OF January "a he advise
Congress that IL a bonus bill is 10 |
PASSED. it should provide addition
taxes to meet H. He directs Mr.. For,
ney's attention to the facts that n
| proposed bill carries no appropriate
but authorizes one. and makes no Or,
vision FOR meeting costs. either for In
mediate or early payments, or for 4
= larger sums that will probably fall d
}. In later years.
e With this emphasis on the lack
funds 70 pay he. then makes the
points:
That in the 1923 (the next nse
year the bill probably would cost I
Government directly s2s9,s54 600.
: the 1924 fiscal year s2l6.440, 900. I'm [
l 1925 fiscal year sl2s.Oi3. 900 and in I
l 1926 fiscal year s6I5, 1922 900.
e That those OUTLAWS would mean
5 total payment from the Governme
= in about three and half years
a over sl.2O0.OOO. 900.
That those figures take no accom-
= or amortization or other reserv
s against insurance certificates aft
d the fiscal year 1926. or OF possil
s costs II the land settlement optic
D, with its contemplated reclamation Or
n Jects, should go through.
n That. IL all the soldiers chou
= choose the insurance certificate optic
y the ultimate cost would be $3.50,
y 900 900.
s That the provision that soldiers m,
n obtain money by borrowing fr,
l.s.s. H.