The Washington times., 1924-02-26
By JOHN r. QUINN,

ny OUAAAN AOs &OAGNINp
National Commander, American Legion.
Written for Cosmopolitan News Service.
INDIANAPOLIS. Ind, Feb. &c.
In face Of the facts later brought
out, the world war veteran is with
in his rights in believing that the
"billion-dollar-error," made by the
Secretary Of the Treasury. was mis-
calculation for political effect.
Consider the story. After liberty
bonds had gone to par; after Great
Britain had begun to pay interest
on her debt to US, the two excuses
advanced for non.payment of ad.
justed compensation were gone.
Took Only Chance.
Congress was known to favor ad-
1uSted compensation. President
Harding, when Senator, had ad.
mitted the justice of the claim, and
had voted for the bill. He would
probably, sign such a measure un-
LESLIE could be convinced the
country could not afford to pay the
bill.
Therein lay the only hope of the
opposition to convince the Presi-
dent 1t would be financial suicide
to enact adjusted compensation.
And 1t was decided to do Just
tnat. Andrew w. Mellon, Secretary
OF the Treasury, went to the Presi.
dent and informed him the country
was facing colossal financial crisis.
The year ending June 80, 1928,
would see a deficit of $3.50, 000, 900 he
reported.
Now deficit Of more than a half
billion Is a serious matter, and any
Chief Executive would ponder a
long time before spending more
money, when he knew the nation
was running behind.
Used His Veto.
So influenced by Mr.. Mellon pre-.
diction, the President was induce
to veto the bill. The House re.
passed the measure with a huge
majority, but certain Senator'S were
affected by Mr.. Melons financial
forecast and the measure lacked
four votes of overriding the veto.
When June 80, 1928 came, how
ever, there was no deficit of $780,.
OOO, 900.
Instead there was a surplus OF
1870, 900 900.
And $211 1000. 900 more than legally
required had been paid off the
public debt.
Error Of Billion.
But the veteran reckoned wrong.
Mr.. Mellon had made an error
OF more than $1,000, 10000, 900.
AS George AIDE might say, what's
a billion dollars between friends?
But let me tell you that men as
wealthy as the Secretary Of the
Treasury do not make billion dollar
miscalculations; else, they do not
become, like him, one Of the rich.
est men in the nation.
If the Secretary of the Treasury
is a financial genius, the shrewd
banker, the clever business man
he is known to be, how did he
happen to err one billion dollars, to
make the greatest arithmetical mis-
take in the history of the country?
Had Achieved End.
But the end was achieved. The
characterization served as the third
excuse for denying the veteran the
economic assistance he was asking.
And the fifth year came.
In 1928 the condition of the
Treasury could no longer be dis,
guised. The country was prosper.
Gus and the one and only excuse
advanced by the opposition to pay
ment of adjusted compensation
that the country could not afford
twas no longer tenable.
1t did not seem as If the peoples
will would be put into effect; that
after five years of waiting the
veteran was to receive his just due.
Consonant with the announcement of
the surplus came the Secretary of
the Treasury announcement for
the tax reduction.
To this he wrongly coupled the
idea that If tax reduction was to
come the bonus could not be
paid. If the bonus" was paid
not only could there be no tax re-
duction, but there might be an in
crease in taxes.
Never was a statement more mis-
representative and less founded on
fact.
It was merely the Secretary of
the Treasury making another mis-
calculation on a par with his bill
lion-dollar error.
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