The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-09-23

| charge the ADJUSTED COlupenSdIloE
bill with inadequacy and stingi-
ness wholly unbecoming our re-
pubic. Such a bestowal, to be
! worth while, must be generous and
without apology. Clearly the bill
returned herewith takes cognizance
Of the inability of the government
wisely to bestow, and says, in sub
stance, 1--WE do not have the cash,
we do not believe in a tax levy to
meet the situation, but here is our
note YOU may have our credit for
{ half its worth This is not COM
pensation, but rather pledge by
| the congress, while the executive
branch Of the government is left
| to provide for payments falling due
in ever-increasing amounts.
when the bill was under con-
isideration in the house I expressed
the conviction that any grant Of
bonus ought to provide the means
of paying it, and was unable to
suggest any plan other than that
OF a general. sales tax. Such plan
! was unacceptable to the congress,
and the bill has been enacted with
out even a suggested means OF
meeting the cost. Indeed, the cost
| is not definitely known, either for
/ the immediate future. or in the ul-
innate settlement. The treasury
estimates, based on what seems
1.-The most likely exercise Of the
options, figures the direct cost at
approximately s145,0oo,000 for
1923; s225,000, 900 for 1874; s114,-
eco ;BOe for 1925; s312,000.000 for
1926, making a total of s7s5, ,000,-
900 for the first four years Of its
toperation and a total cast in excess
of $4,000, 100000. No estimate OF
the large Indirect cost ever had
been made. The certificate plan
| sets up no reserve against the ul-'
timate liability. The, plan avoids
any considerable direct outlay by
the government during the earlier
years OF the bills proposed opera
itions, but the loans on the certi-
Efca6es would be floated on the
credit of the nation. This is bor-
rowing a nations credit just as
truly as though loans were made by
direct government borrowing, and
involves dangerous abuse of pub
lie credit. Moreover, the certifi-
cate plan of payment is little less
than certified inability of the gov
ernment to pay, and invites a prac-
tiee on sacrificiai barter which I
can not sanction.
1t is worth remembering that
the public credit is founded on the
popular belief in the defensibility
of public expenditure, as we'll as
the governments ability to pay.
Loans come from every rank in
life. and our heavy tax burdens
reach, directly or indirectly. every
element in our citizenship. To add
Itone-sixth of the total sum Of our
public debt. for a distribution among
less than FIVE millions out of one
hundred and ten millions, whether
inspired by grateful sentiment or
political expediency, would under
mine the confidence on which our
icredit is buiided, and establish the
precedent >of distributing public
funds whenever the proposal and
the numbers affected make it seem
politically appealing to do SO.
Congress clearly appraised the
danger OF borrowing directly to fl
nance a bestowal which is without
obligation, and manifestly reeog-
nized the financial problems with
which the nation is confronted.
Our. maturing promises to pay
within the current fiscal year
amount to approximately $4,000
00e, ,0pe, most of which will have
to be refunded. Within the next
SIX years more than s10,e0O,0W,-
eco of debt will mature. and vii,
have. to be financed. These out
standing and maturing obligations
are difficult enough to meet with
out the complication Of added bor-
rowings, every one OF which
threatens higher interest and de-
lays the adjustment to stable gov
ernment financing and the diminu-
ton of federal taxes to the defensl-
BILE cost of government. "
1t is. sometimes tfaoughtlessly
urged that. it is a simple thing for
the rich republic to add four bill
lions to its Indebtedness. This i'm
preston comes from the readiness
of the public response to the gov
ernment's appeal for funds amid
the stress Of war 1t is to be re-
menbered that in the war every
body was ready to give his all. Let
us not recall the comparatively few
exceptions.
Citizens of every degree of cons
pctence loaned and sacrificed, pre-
cisely in the same spirit that our
armed forces went out for service.
The war spirit impelled. To a war
necessity there was but one answer,
but a peace bestowa1 on the ex-
service men, as though the SUI
preme offering could be paid for
with cash, is a perversion Of public
funds, a reversal of the policy
which exalted patriotic service in
the past, and suggests that future
defense is to be inspired by COM
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