The New York herald., 1922-03-20
Federal Burden Increased
2,210 Per Cent. and
States Only 55.
UNIQUE IN U. s. HISTORY
Central Government Bore War
Obligations Without Call
ing for State Aid.
Special Dispatch to THE New York HERALD.
New York Herald Bureau.
WaShingtOn. ID. c.. March 10.


The action of some of the States in
providing a bonus for veterans of the
world war, which Eas been urged as q
specimen of public sentiment, was put
in new light to-day by the Chamber
of Commerce of the United States, in
statement condemning the bonus
raid on the Treasury
The States were able to provide such
bonus, the Chamber Of Commerce
declared, because of tie fact that the
Federal Government, for the first time
in history. bore all the expenses of the
war. Remarkable figures were pre-
sented which showed that there was
sharp difference in the increase of
the State and TIE national debts as
result of the war.
These figures developed that the
total State debts in 1921 We're in
creased only s252.s77, ,4s7 over 1916, or
SIS per cent, while the national debt
increased s22,244.S5S,214, or 2,21o per
cent.
only Instance in History.
"The world war furnished the only
instance in the history Of the country,
the Chamber of Commerce declared.
when the national Government paid
all the expenses of war, which included
mobilization. equipment, construction.
training, feeding. housing. transportation
and maintenance from the time OF en-
listment to the time of discharge and
return OF the soldier to the point of en-
listment Thus the States were relieved
of many expenses which they had borne
in whole or in part in previous wars.
1T may be urged, therefore. with rea-
son and propriety, that the vote for a
State bonus carries with II no indica-
ton that a national bonus Is desired by
the people As a matter Of fact, more
than 64,000.000 citizens of the country
have given no vote to indicate that n
national bonus is desirable or war
ranted. This population is contained in
the thirty-two States which have not
voted in favor OF cash bonus.
"As result OF an intensive cam
paign carried on for some two years BY
bonus advocates only sixteen States have
authorized a cash bonus, eleven of them
as a result Of referendum and five
through action OF the State legislatures
In one of the sixteen States (New York;
the bonus bin was declared unconstitu-
tional. In eight other States. where
there is a population Of 10000. 900, the
bonus was defeated"
Overwhelming Opposition.
The argument was presented by the
Chamber OF Commerce OF the United
States as result of the overwhelming
sentiment against such a bonus cx-
pressed by referendum OF the organi-
zation. the membership OF which In
cludes chambers of commerce in all Sec
tions of the country. This vote was
three TO one In opposition, and the refer
1 endum included business organizations
in 3T5 cities in forty-six States in the
District of Columbia. Alaska and
Hawaii. and by American chambers OF
commerce IN Havana, Cuba, and Tam
pico. Mexico
The Chamber OF Commerce statement
I Is contained In a booklet which sets
forth figures on the State and national
debts II Is shown that in 1916 the
| total State debt amounted to s459.66S,-
| 600. while IN 1915 the total national
debt amounted TO Si,006. .2S1,355. This
made the per capita State debt $3.50
1 and the pcr capita national debt ss.SS.
| In 1921, after the world war. how
ever the total state debt was s712.s45.-
4 497. while the national debt was s23.-
I 251.139.bse II made the per capita state
debt S6.1e. while the per capita national
debt went 10 s2l6.73.
For the purpose Of paying cash
bonuses 10 the veterans Of the world
war thirteen OF the States have author
lied bond issues In the amount OF st91.-
| 100.000-which sum Is equal 60 IS per
cent. OF the total increase OF State debts
for the forty-eight States. A number OF
the States either had no State debts or
very small ones and practically none
OF the States voting State bonuses had
heavy debts.
IT was shown that the voting of cash
TO veterans in States, therefore, In no
instance would bring about a serious
financial situation The Chamber OF
Commerce inquiries, in consequence.
whether any one would suppose that the
States would have voted millions OF doll
lars for bonus II their debts, as the
national debt. had Increased IN so short
a perod--nve years by 2.2l0 per cent.
And " the national Government had
not assumed all the financial burdens OF
the war the States would be burdened
\ with debts greater than were ever ex-
perienced in this country" the booklet
-