The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1922-04-12

Several years ago in Harvard ex-
animation the question was asked
"What is meant by the polarization
of light?" And one Of the students
with unwilling wisdom, replied, 'The
polarization of light, as 1 understand
it, is very little understood With
equal truth a similar reply might be
made concerning the bonus by many
of the financial writer's who are op-
posing it.
One hears extraordinary statements
about the probable expense involved
and estimates varying all the way
from 81 100000 to $4,000, 000,0 900
or $75 ,OOO,O 100000. I have received
many circular letters from broking
houses processing to explain the adj
justed compensation bill and to esti-
mate the burden which it will place
/ have yet to read one such circular
letter or to read any financial letter
in any important newspaper of the
country which gives anything but a
grossly exaggerated statement of the
probable cost involved. In a recent
market letter of Jules Bache & Com
pany it was stated that it would place
upon the taxpayers of the country a
burden of $1,000,000,000 annually; in
a financial article from the Public
Ledger which was sent me the other
day it was stated that the soldiers bo-
nus will require $2,O00;000;000 init
ally; and in the last circular letter is
sued by the Irving National Bank, of
New York. one reads that it will div
ert some $3,300O0O,OOO of tax funds.
This seemed bad enough, but the
Washington Star last week stated the
total cost would not improbably range
somewhere between $5O,OO0 100000
and 5,O00,0O0,000.
Facts on the Cost.
What are the facts?
If the bill were adopted in the form
in which it was introduced in the
House by Mr.. Fordney and in the
Senate by Mr.. McCumber it might,
in case all veterans choose cash COM
pensation, cost $1,5OO,O00,00O in the
course of the next three years and
that would be all that it would ever
cost. If, on the other hand, all vet
Grams were to select as their option
the alternative of paid-up insurance
it might cost little over $5,000,000,-
900 at the end of 20 years, when the
insurance natures. Those are the
maximum and minimum costs involv-
ed in the present bill and the actual
cost will depend upon the choice of
the veterans as between the different
alternatives. According to the esti-
mates made by Secretary Mellon, bas-
ed on the supposition that half the
veterans would take cash and half in
surance, it would cost about 100000
900 for each of the first two years and
very little thereafter until the expira-
ton of the insurance. These are IN
deed formidable sums, but taking the
maximum payments for the next three
wears of 81, 500, 100000 on the assump-
ton of every soldier choosing cash,
the total would not amount to half as
much per capita for our people as
the bonus which Canada paid to her
soldiers involved for her population.
How to Pay 1t.
How, you may ask, is this great
sum to be paid?
It should be noted in passing that
the suggestion of levying special
taxes to meet a special expenditure
has never been raised before in con-
nection with the adjustment Of COM
pensation for any other wah claim
ants. When the Dent Act was passed,
which arranged for settling claims of
war contractors, no particular revenue
measure was provided, although the
actual compensation paid under that
act amounted to nearly $4,000, 100000.
No prejudice was created against
these claimants and there was little
protest against them because they
were paid out Of the general resources
of the Treasury and no definite taxes
were assigned for their settlement.
The same is true of the adjustment Of
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