Evening star., 1924-05-15
Public Clamors for Tax Relief,
Message to Congress Declares.
Proponents of Bill Assert the
! President Can Be OverruIed,
| Previous Vote Indicates.

policies to world war veterans.
Seek to Override Veto.
Advocates of the bill Immediately
announced that an attempt would
be made to pass it over the veto. On
its original passage it received more
than the necessary two-thirds vote
IN both Senate and House.
The message follows:
To the House of Representatives:
Herewith is returned, without ap-
proval, H. r. 1859, a bill Ito provide
adjusted compensation for veterans
or the world war, and for other pur-
poses"
The bill provides a bonus for the
veterans of the world war and de-
pendents of those who fell To GER
tain of its beneficiaries, whose maxi
mum benefits do not exceed $50, this
bonus is to be paid Immediately in
cash. To each of it's beneficiaries who
are not to receive such immediate
cash payment. there is to be provided
free insurance under a twenty-year
endowment plan.
The face value of each Dolicy ,vill
be based upon the military service,
the average amount being at least
s962, payable at the expiration of
twenty years or at death prior there
to- After the lapse of two years the
holder of policy may borrow there
on from banks at reasonable rates of
interest. If amounts so borrowed are
not repaid by the veteran the govern
ment is obligated to pay to the banks
TINS Indebtedness which ultimately
reduces the maturity value of the
policy.
An appropriation of STAG, 900, 900 for
the fiscal year 1925 will be required
TO provide the prorated annual cost
or the insurance and to meet cash
payments to those not receiving such
insurance. This does not include ad-
lnlnlStratlve costs, which will amount
to approximately s6,50O,0OO the first
year. For the fiscal year 1926 an
appropriation of 1856, 100000 will be
required and the annual appropria-
tions for the twenty-year period will
aggregate, according to the lowest
estimate, 2,2S0,75S,542 These and
me other hgures herein are from the
veterans Bureau, but the Treasury
estimates are materially more.
That part of the annual appronria
tIon not required to meet the cash
bonus or to pay policies maturing on
account of death will be invested in
government bonds The face value of
the bonds thus acquired plus the in
terest thereon re-invested will equal
during the tWenty-year period the
maturity value of she insurance poll
cies, aggregatfng at the lowest esti-
mate So, Jas, 10000
The money spent for the acquisi-
tion of these bonds manifestly can
not be spent for any other purpose,
no matter how urgent our other re-
quirements may be. In other words,
we will be committing this nation for
period of twenty years to an ad-
ditional average annual appropriation
of $114,000,000. This of itself should
require most serious reflection, but
If we are to have such commitment
it should be in some form which
would be in harmony with recognized
principles of government finance.
The provisions of this bill are not
so in harmony. Under it the govern
ment will not have in the fund in
1945 two and a half billions ofsdoI-
lars. All it will have will be it's own
obligations, and 1t will owe two and
half billions of dollars cash. 1t will
then be necessary to sell to the public
this two and half billions of bonds
"a major operation in finance which
may be disastrous at that time and
may jeopardize the value of federal
securities then outstanding.
I'VE have no money to beStow upon
q class of people that is not taken
from the whole people. Our first con-
Germ must be the nation as a whole.
This outweighs in it's Importance the
consideration of a class, and the lat
ter must yield to the former The
one compelling desire and demand of
the people today, irrespective of party
or class, is for tax relief. The people
have labored during the last six years
under a heavy tax burden. This was
necessary to meet the extraordinary
costs of the war. This heavy assess
ment has been met willingly and
without complaint. We have now
reached a financial condition which
permits us to Tighten this tax burden.
IF this bill becomes law we wipe
out at once almost all the progress
five hard years have accomplished in
reducing the national debt If we
now confer upon a class gratuity
such as is contemplated by this bill
we diminish to the extent of the ex-
penditures involved the benefits of
reduced taxes which will flow not
only to this class, but to the entire
peoSPp1be; .Spben it is considered that less than
$40 a year would pay for the average
nolicy provided by this bill. there is
strong ground to assume that the vet
Grams themselves would be better of
TO make that small payment and be
relieved of the attendant high taxes
and high living costs which such leg
isIation would impose upon them.
have hardly an economic i'll today
which cannot be attributed directly or
Indirectly to high taxes.
."The prosperity of the nation, which
is the prosperity of the people, rests
primarily on reducing the existing
tax burden. No other action would
SO encourage business. No other leg
10 relieve agriculture. The drastic
executive campaign for economy in
government expenditures has but one
purpose-that its benefits may accrue
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