The Hartford republican. (Hartford, Ky.) 18??-1926, 1922-09-22
disputable obligations.
Obligation to Others Not Admitted


IL recite the figures to remind the
Congress how generously and how
properly II has opened the treasury
doors to discharge the obligations Of
the nation to those to whom II indls-
putably owes compensation and care,
though undying gratitude Is the need
of every one who served Il is not to
be said that a material bestowal is an
obligation to those who emerged
from the great conflict not only an
harmed. but physically, mentally and
spiritually richer for tbs grea' ex-
periences. IL an obligation we're TO
be admitted Il would be to charge
the adjusted compensation bill with
inadequacy and stinginess wholly un-
becoming sour republic. Such a be-
stowal to be worth while must be
generous and without apology. Clear
" the bill returned herewith takes
cognizance of the inability of the
Government wisely to bestow and
says, in substance, 1--WE do ut have
the cash. we do not believe In tax
levy to meet the situation. but' here
is our note you may have our or dit
for half its worth" This is not
compensation, 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.
Sales Tax Unacceptable
"When the bill was under con-
sideration in the House. | expressed
the conviction that any grant Of
bonus ought to provide the means of
paying 1t and I was unable to suggest
any plan other than that of general
sales tax. Such plan was unaccep-
table to the Congress, and the bill
has been enacted without even a, sug7
gested means of meeting the cost.
Indeed, the cost is not definitely
known, either for the immediate flu
ture or in the ultimate settlement.
The Treasury estimates, based on
what seems the most likely exercise
of the option, figures the direct cost
at approximately $154.000,00O for
1923. s225.OOO, 900 for 1924, STA
100000 for 1925. s312,000,00o for
1925. making a total of $795,000, 900
for the first four years of its opera
ton, and a total cost in excess of .S4.-
100000. No estimate of the large
indirect cost ever had been made.
1.-The certificate plan sets up no
reserve against the ultimate liabil-
ity. The plan avoids any consider
able direct outlay by the Govern
ment during the earlier years OF the
bills proposed operations, but the
loans on the certificates would be
floated on the credit of the nation.
This is borrowing on the nations
credit just as truly as though the
loans were made by direct Govern
ment borrowing and invokes dan
gerous abuse cf public credit. More
over, the certificate plan of payment
is little less than certified inability
OF the Government to pay and in
vites practice on sacrificial bar
ter which | cannot sanctions.
Heavy Debts Must BE Paid.
at Is worth remembering that the
public credit is founded on the pop
ular belief in the defensibility of pub
Nc expenditure as we'll as the Gov
ernments ability to pay. Loans
come from every rank in life, and \
our heavy tax burdens reach. direct
ly or indirectly, every element in
our citizenship. To add one-sixth
Of the total sum of our public debt
for a distribution among less than
5, 900. 900 out of 10 100000, wheth-
er inspired by grateful sentiment or
political expediency, would under
mine the confidence on which our
credit is builded. and establish the
precedent of distributing, public !
funds whenever the proposal and the |
numbers affected make II seem
politically appealing TO do so.
Congress clearly appraised the |
danger of borr6wing directly to fl
nance a bestowal which is without
obligation and manifestly recognized
the financial problem with which
the nation is confronted Our ma
turing promises TO pay within the
current fiscal year amount to APP
proximately $4,000, goo, 900, most of
which will have to be refunded
Within the next six years more than
$40. 900, 900 200 of debt will mature
and will have to be financed. These
and maturing obligations
ire difficult enough to meet with
~ THE complication of added bor-
'owings. everyone of which threatens
higher interest and delays the adj
ustment to stable government f.