New-York tribune., 1922-03-18
CiIlett Won't
Suspend Rules
To Pass Bonus
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member Of the Ways and Means Com
mittce was made this afternoon by
Representative Frcar. who predicted
the bill would pass the lower house
/ by which the committee reported it
favorably. almost four to one.
The greatest opposition to the bonus
comes from New York, he declared.
which voted $4,000, 900 for it's service
men.
"Twcnty four states -- just half the
total--have made some cash provision
for their soldiers and eighteen states
have given majorities and in some
cssrs overwhelming rcferendums in
favor Of such legislstion,' said Mr..
Frear. with three exceptions, Cyerv
state in the Union has given state aid
to it's service men. New York gave
$A5 900 600 to its service men, but the
gift was set aside by legal proceedings.
Although the Empire State has done
nothing for these men the strongest
opposition to the bonus comes from
that state.
"Complant is made that it's taxes arc
heavy. but a great part Of the national
wealth is ceutcrcd in New York aud
the ts%es arc not reaf1y as heavy pro-
portionately AS the tax paid by farm
crs and labor generally OF the country.a
majorty Of whom received less than
$500 per laborer. according to the An
derson report and other official status
tics. Many Of the ex-scrvice men are
among this number. and while some of
the men may not need help it is prac-
tically impossible for the committee to
discriminate, and SO we have given to
all small payment, depending on
length Of service.
Asssils Metropolitan Press
"'rhe Wall Street Journal has been
aptly described as the orchestra leader
that sounds the opposition keynote TO-
any soldiers bonus bill. A few metro
politar papers in New York, Boston,
philadelphia and elsewhere, read by
brokers, big bankers and professionals
Of the stock and bond and banking
business. like tho Journal describe
Congress as raiGing the nations treas
ury.
.''Thc power of propaganda voiced by
New Yorl, fnanciers, by the Journal.
and other metropolitan papers IS we'll
understood. For months before we en-
tered tho war these agencies bomparo-
ed Congress with demands that we de-
clare war Immediately. We were con.
New York City, where the worlds
hnancicrs were centcred. It's people
were said to be in mortal terror OF
enemy submarines and hostile air
planes. Possession Of $4,000 900 900 Of
Allied Indebtedness by New York
money interests it WAS known would
be valueless if the Allies were defeat
ed and these interests further feared
German indemnitics unless we entered
the war
"To day all the pictures Of our SOL
dicr boys marching to their transports
and all the sacrifices of war are for
gotten by these New York tinanciers,
many Of whom advocate the cancella-
tion Of $1,000, 100000 of European
debts which would vastly enhance the
value of five billions Of Allied private
obligations they now hold. These same
tinanciers, with few exceptions, strong
ly oppose any soldiers bonus to be
paid by Allied bonds because. that
would block foreign debt cancellation
plans. The journals they own or con-
cowardly and acting through fear ef
political consequences because 1t now
favors a bonus aud because it would
grant tardy recognition heretofore ex-
tended by every other country to its
cx-servicc men.
what Of recent demands on Con-
gress by these New York financlers ,or
guaranty of their railway security
earrings, and what Of the bill for $780,
oc0.0 900 that passed the House to help
stabilize railway securities?
What Of successful demands OF.
Congress by these financiers for $S,-
000,000,000 with which to pay Cancelled
war contracts financed by the same
| interests? Not one objector was then
found among the army of Wall Street
financierspr the journals they control
We were not asked to find what prof.
tcers or cost-plus war contractors were
financially wounded, manned or other
wise disabled. All we're financial
patriots and all were treated alike, but
to-day, when Congress proposes to pay
the ex-service men 81 day for saving
Wall Street and the, country from pos
sible German indemnity, the financial
interests thus saved ask why should
we reward patriotism unless physically
crippled, and insist that any bonus
must be paid by the soldier and the
hundred million of people through a
consumption tax, by those who have
little margin over what they consume"
Mellon Against Sales Tax
ne. letter from Secretary Mellon TO
Mr.. Frear was reply to one sent to
the Secretary last Monday by the Rep
resentative. 1t read:
Whether or not there is to be a
soldiers bonus is question for which,
as you say, Congress will assume re-
sponsbility. For the Treasury 7 have
attempted to point out the necessity of
meeting by taxation the cost Of what
ever bonus may be adopted and the
dangers Of attempting to provide for n
bonus by borrowing or makeshift
measures. AS think was made clear
to the committee and the country, !
have not recommended any particular
taxes, though have, at the request Of
the committee, suggested several pos
sible sources Of additional revenue that
would be available II Congress should
! decide te grant soldiers bonus
81 gather from your letter that you
are under some misapp chension also
as to the Treasury's position with re-
spect TO a sales tax. The Treasury has
not recommended any general sales
tax. AS a matter of fact, am not in
favor Of general sales tax ii it is
to be imposed in addition to all ex-
isting taxes, unless MADE necessary by
an emergency in the revenues, such as
would arise through adoption Of the
bonus measure.
Neither the payments which the
government has made in order to set
tic Cancelled war contracts. nor the So
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