Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1922-04-10

of Bonus S
Attacked
Financial Magnates' Attitude
on Compensation Proposals
Are Scored BY American
Legion Official.
Condemns Frank Munsey
By ARTHUR SEARS HENNING.
Omaha Nee Leased Wire.

9
received by every senator today.
John Thomas Taylor vice chairman
OF the American Legion's legislative
committee. delivers wilherins
broadside a, Frank A. Munsey and
other financial magna,es. who arc
sighting the pending soldier bonus
legislation
Mr.. Taylor cites numerous fnsn-
cial publications TO show ,ha, big
business has plenty OF money in hand
ior stock speculation while i, be-
grudscs adjusted compensation to
the soldiers who made secure the
interests OF the fnanciers.
THE banks OF the United States"
says Mr.. Taylor, earned during the
war period and the prosperity era
Immediately following. profits. which
they still retain. OF Sl,747 COS, 900.
This vast sum is three times greater
than the retained profits o. similar
period preceding the war, and is
three times the amount OF money
which the Chamber OF Commerce OF
the United States OF America csii-
mates that veterans will borrow from
banks within the next three years
upon adjusted service certificates.
when the senate ratihes the hve-fold
adjusted compensation bill i'll the
form recently passed by the house.
Banks Fight Bonus.
These enormous profits OF near
ly one and three-quarters billions OF
dollars, are in addition to the profits
which were not retained, such a.
dividends. extra dividends and bonus
payments 10 their own employees
during the world war period. o
"A large proportion OF these unpre-
cented profits were made and re-
tained by the New York banks, con-
trollcd by the great financial inter
csts which are leading the fight
against adjusted compensation for
veterans on principle" One might
also say "on principal and interest"
"The financial interests are now
preparing to use these great profits
in big stock market cleanup, if
the Wall street financial magazines
are to be relied upon"
In connection with the virulent
campaign against the bonus being
conducted by Mr.. Munsey's New
York Herald, Mr.. Taylor quotes the
following from Barron's Financial
Weekly:
Munsey Coming to Fore.
Frank A. Munscy, magazine and
newspaper publisher, hotel proprie-
tor and owner Of grocery chain
store enterprise, as we'll as the head
of banking institution. is once
more coming to light as an impor-
tant stock market factor.
Mr.. Munsey is credited with l1av-
ing accumulated line of steel COM
mon, and in conjunction with GER
tain stock exchange interests. is
looked up to as the pilot OF the is
| sue.
Ten or dozen years ago Mr..
Munsey and some OF his friends, in
cluding the late George w. Perkins.
were very bullish on steel and rode
along with it to the tune of profits
mounting into the millions"
MIR. Taylor quotes another item to
the effect that the price of steel is
being boosted by strong arm tac-
tics on the part Of the manufacture
ers."
So the cat is actually out of the
bag" Mr.. Taylor comments. "The
price of steel is being put up by
strong arm tactics and naturally
the prices OF steel stocks are to soar
high. Mr.. Munsey, as the pilot OF
steel, would naturally be opposed to
any measure tending to divert loans
on steel stocks for 'accumulating
line of steel common means buying
on margin, and borrowing the money
from the banks with which to do it.
Floating Bond Issues.
Also tremendous stock and bond
issues are being floated by the large
financial groups opposing adjusted
compensation for veterans and the
unprecedented records created DUR
ing the wartime prosperity period.
when it was common saying that
people would buy anything, are be-
ing topped each month.
If the financial interests maintain
the average during the current year
| it will mean that they float and sell
to the public S4,200,0O00O0 worth of
new securities, in addition to re-
funding operations and government
issues. These enormous issues do
not disturb the money market, how
ever"
Raps New York World.
To show they are easily absorbed,
| Mr.. Taylor quotes from the New
! York World, which is fighting the
bonus, an article stating that per
inanent easy money is the vision of
the bank profteer.
$50 the New York World sees
permanent easy money i'm sight"
Mr.. Taylor continues. "Yes, per-
manent easy money for the investor,
permanent easy money for the spec
ulator. and permanent easy money
for Wall street, which is selling its
new securities to the public at the
rate OF 81, 200, 100000 annually.
But permanent easy money for
the veteran who risked his life and
his job, that this permanent easy
money referred to might come to the
! big interests: Not on your life. No
permanent easy money for the
soldier Adjusted compensation. to
help out his 81 day pay: No,
thumbs down on that. too. 1t might
disturb the 4 per cent permanent