Norwich bulletin., 1922-01-25
rREAsr-T IS oPPosEp
 TO THE SOLDIERS BONUS

washirsfoz. Jan. s4-Treasury oppo- sitlcn to "a soldier bonus remains un- changed. but n there is to be a bonus 1t must te provided through taxation in add-lcr to taxes imposed by existing law. Secretary Mellon declared tonight in letter Co Chairman Fordney of the house ways and means committed Any E-renpt 10 provide for the bonus through the use of the princ.3ai and interest of .ls foreign debt ts>thss country. he con- tended. would be futile. as well as uz- wze."
 Mr. Melons letter vas in response to request from Mr. Fordney for an ex- n-ess.on of the views Of the secretary and Inc treasury department on the gov- e-umeutal financial outlook for the com Ing year and hah and for suggestions ss Co legislation.
 Submitting detailed estimates of gov crnmeut receipts ana expenditures for the fiscal years 1929 and 1923. and the treas ury plan for refunding the short dated ie0t. Mr. Mellon declared no allowance has bean made for any extraordinary eVreudiiures for a soldiers bonus, which would cost. on the most conservative es- -in7tes. he said. probably not less than fS5afo0 coo in the first two years.
 The figures he said, show that hare VIII be no available surplus, but more probably deficit and that with the enozmous refunding operations which the treasury has to conduct. t would be dan seruss in the extreme to-r attempt to lna1ce the Expenditures involved in the bonus through new borrowings"
 On the other hand. no Indirect means Of financing the bonus would make 1t any Ices an expense to be borne in the long run by the taxpayer, Mir. Mellon declared, taking up the proposal to use the foreign debt as basis for bonus payments
 r is impossible, he maintained, in ad- vance of funding arrangements, to esti- mafe what may be collected on the for ei<r debt In the near future by way of princpai or interest Nle obligations. which are In the form of demand obliga- tons, are not he asserted. in shape to sell Co the publicl while to offer them rih the guaranty of this government would interfere with The treasury's re- frrding operations and prove more ex- pens.ve than the sale of direct obligations ,f he government
 At the same time" he added. "ii would enormously cofnplicate the inter- national situation and certainly embar- 1ss the funding negotiations."
 lt would accomplish nothing. Mir. Mel lon argued. 10 set aside the foreign debt For the payment of the bonus, even fl snough could be realized in tfne
 As the law now stands" he said, "and r justice 10 the millions of Liberty bond holders. the government Is bound to ap- ply any principal payments by foreign Eove-nments. as weli as any proceeds oi sale. co the retiremcnt of outstandinr Liberty bonds. about ten million of Whict were issued In tho first instance 10 pro vide Tor advances 10 foreign govern. meutE-
 Intersst collected. he declared, shcuit also 70 10 provide interest on Liberty bonds. 60 that fl the proceeds of the for eiEu ,Aebt were applied to the bonus tn, E4Fernment would. 10 that extent, have t< provide for the principal and interest o. Lihezty bonds from other sources. Thii means. he asserted. taxes otherwiss un necexsary.
 rhs plan to uss f,as ferstxa 5s5sss<s, tons to pay a sosdierS bonus, there fore. Mfr. Meilou continued, would stii loave ths burden on the shoulders of thl American taxpay~r~
 Discussing the financial outlook of thi rore1nnent Mr. Ms1ion presented detail ed nTurea covering budget estimate. w1ich. he said, indcntsd dencit of nor, than S14.ooo.eo0 for 1872, and a denci cf nors than s1s7 .ooo for 1szs. no allowing for sse-ooooo0 requested by tn r.i7ptuE board for the payment of claims fI'onN. .peQ To be spent fof Russian relic hr the United States grain corporation end it.oeo.0oo to be paid s-- 1a2a sn