Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-16
TEXT OF LETTER

Inc text OF president Hard1ngs letter
follows:
MY Dear Mr.. Fordney.
In accordance with the promise to
yourself and your associates on the SEN
ate and House committees, charged with
the responsibility Of formulating the
proposed bonus legislation. I have care
fully looked into the program OF taxa
ton which has been suggested. In addi-
ton thereto, 1 have made inquiry into
the feasibility Of issuing either short
term treasury notes or long term bonds
to meet the financial obligations " y
the proposed legislation viii impOst
Is not possible TO commend to you ei.-er
of the plans suggested.
at continues to be my best Judgment
that any compensation legislation en-
acted at this time ought TO carry with it
the provision for raising the needed rev.
enues and I ind myself unable to sug-
gest any cOmuendable plan other than
that OF a general sales tax. Such a tax
will distribute the cost OF rewarding the
ex -service men in such q manner that it
VIII be borne by all the people to whom
they served, and does not commit the
Government 10 class composition OF
taxes or the resumption Of the burden
repealed, the maintenance Of which can
oe justified only by q great war emer-
gency.''
ct is fully realized how great is the
difficulty which confrOnts the Congress
in solving this difficult problem. am
aware Of the strong sentiment in Con-
greSs In favor Of this adjusted compen-
sation- l have spoken approvingly my
self, always with the reservation that
the bestOwal shall be made when 1t may
be done without such injury TO the cOun-
try as will nullify the benefits TO the ex-
-, i t.
preston Of gratitude is designed TO be-
stow.
1T IS not an agreeable thing TO sug-
gest that action be postponed again, but
frankly, l do not find myself favorable
to the piece-meal payment plan. which is
manifestIy designed to avoid embarrass-
ment to the treasury. The long drawn
out payments viii not afford an effective
helpfulness to the service men.
I'VE have no serious problem in begin
ming the allotments OF public lands and
the immediate issue of paid-up insur-
ance. The real difficulty lies in the pay
ment of the cash bonus. Rather than
provide that the maximum cash payments
shall extend over a period Of two and
one half years, II would be a vastly bet
ter bestowal If we could await the day
when we may safely undertake to pay at
turned TO real advantage.
"Inasmuch as the treasury Is TO be
called upon to meet more than six billion
dollars OF maturing obligations in the
sixteen months Immediately before US, II
is not possible to recommend the issue
Of several hundred millions Of additional
short time notes. Further excessive Dor
rowing would likely undo all that has
been accomplished in readjusting interest
rates and stabilizing the financial world
but vitality essential to the resumption Of
industrial and commercial activities.
Granting that 1t is not fair to oppose
any proposed plan without offering &
substitute, let me repeat that I believe the
American people will accept the levy
Of a general sales tax to meet the pro-
posad bonus payment, and we should
contribute thereby no added difficulties
to the problems Of readjustment. II
Congress will not adopt such a plan, 1t
would be wise to let the legislation go
over until there is a situation which
will justify large outlay. We are driv-
ing for large economics. we are pushing
the disposition of surplus war property
and have under consideration other prop
ositions which ought to prove great re-
lief to the Federal Treasury. It is not
consistent to enact legislation in anticipa-
ton of these things, but it would be a
prudent plan to await the developments,
and / can see in such a postponement no
lack Of regard for the service men in
whom all the American people are so
genuinely interested.
II take that the ex-service men them
selves are no less concerned than others
about restoration OF business and the re-
turn to abundant employment. Those of
their wounded or sick comrades who
were impaired by their war service are
being cared for with the most liberal
generosity the Nation can bestow. There
are here and there exceptional cases OF
neglect, and attending complaint, but we
are seeking them out and correcting
with all possible speed. 1t has not been
possible to meet all the demaDds for
special disqualification, but we are build
ing to that end, without counting the
cost We are eIpending $400.OO0.O00 a
year in compensation, disqualification and
"These things are recited to reassure
you that such delay as will enable Con-
gress to act in prudence for the common
good will have no suggestion Of unmind-
fulness or tngrattude.
"Ve-y truly your,
Warren G. HardinE.H