Evening star., 1922-09-19
PRESIDENT VETOES !.
SOLDIER BONUS BILL;
MEANS HELD LACKING

adequacy and stinginess wholly unbe-
coming our republic.
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 gov
ernment wisely to bestow, and says, in
substance, I've do not have the cash,
We do not believe in tax levy to meet
the situation. but here is our note; you
may have our credit for half its worth"
This is not compensation, but rather a
pledge by the Congress, while the ex-
ecutive branch of the government is
left to provide for payments falling in
everincreasing amounts.
Definite Cost Not Fixed.
When the bill was under consideration
In the House 1 expressed the conviction
that any grant Of bonus ought to pro-
vide the means of paying it, and I was
unable to suggest any plan other than
that Of general sales tax. Such plan
was unacceptable to the Congress, and
the bill has been enacted without even
a suggested means Of meeting the cost.
Indeed, the cost is not definitely known,
either for the immediate future or in
the ultimate settlement.
The Treasury estimates. based on
what seems the most likely exercise
of the options, figures the direct cost
at approximately $145.000.000 for 1928,
$225.00o.oo0 for 1924. $114.000.00o for
1925, $312,000.00O for 1925. making a
total Of $795, 100000 for the first four
years of its Operation and a total
cost in excess Of s4,000,000,0 ,0O0.. No
estimate of the large indirect cost
ever had been made. The certificate
plan sets up no reserve against the
ultimate liability. The plan avoids
any considerable direct outlay by
the government during the earlier
years of the bills proposed opera
tions. but the loans on the certificates
would be fioated on the credit. OF the
nation. This Is borrowing on the ma
tion's credit. just as truly as though
the loans were made by direct gov
ernment borrowing. and involves a
dangerous abuse Of public credit.
Moreover, the certificate plan of pay
ment Is little less than certified in
ability Of the government to pay and
invites a practice on sacrificial barter
which cannot sanction.
Less Loss OF Confidence.
1t is worth remembering that the
public credit is founded on the popu-
lar belief in the defensibility of pub
lie expenditure, as well as the govern
ment's ability to pay. Loans come
from every rank in life. and our heavy
tax burdens reach. directly or indi-
rectly, every element in our citizen
ship. To add one-sixth of the total
sum of our public debt for distribu-
tion among less than five millions out
Of one hundred and ten millions,
whether inspired by grateful senti-
ment or political expediency. would
undermine the confidence on which
our cerdit is builded, and establish the
precedent Of distributing public funds
whenever the proposal and the num-
bers affected make 1t seem politically
appealing to do so.
Congress clearly appraised the
danger Of borrowing directly to
finance a bestowal which is without
obligation, and manifestly recognized
the financial problems with which the
nation is confronted. Our maturing
promises to pay within the current
fiscal year amount to approximately
$4,000, 100000, most of which will have
to be refunded. Within the next six
years moro than $10,000,000 900 of
debt will mature. and will have to be
financed. These outstanding and ma
turing obligations are difficult enough
to meet without the complication of
added borrowings. every one Of which
threatens higher interest, and delays
the adjustment to stable government
financing and the diminution Of fed
eral taxes to the defensible cost Of
government.
It Is sometimes thoughtlessly urged
that it is a simple thing for the rich
republic to add four billions to its
Indebtedness. This impression comes
from the readiness of the public re-
sponse to the governments appeal for
funds amid the stress Of war. It is
to be remembered that in. the wan
everybody was ready to give his ali.
Let us not recall the comparatively
few exceptions. Citizens of every de-
gree Of competence loaned and sacri-
feed. precisely in the same spirit that
our armed forces went out for serv-
Ice. The war. spirit impelled. To
war necessity there was but one
answer, but a peace bestowal on the
ex-service men, as though the su-
preme Offering could be paid for with
cash, Is a perversion Of public funds,
reversal Of the policy which exalted
patriotic service in the past, and sug-
gests that future defense is to be in
spired by compensation rather than
consciousness OF DUTY to flag and
county.
Govefnnaent's Prebiem.
The pressing problem Of the gov
ernment is that Of diminishing our
burdens, rather than adding thereto.
1t Is the problem Of the world. War
inflations and war expenditures have
unbalanced budgets and added to in
debtedness until the whole world is
staggering under the load. We have
been driving in every direction to cur
tail our expenditure and establish
economies without impairing the es-
sentials Of governmental activities.
It has been a difficult and unpopular
task. It is vastly more spplauded to
expsnd than to deny. After nearly q
year and = quarter OF insistence and
persuasion, with q concerted drive to
reduct government expenditure In
every quarter possible, 1t would wipe
n,,< avarvfhine thna far aecorn MI 81 al