Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-16
TEXT OF MESSAGE
(continuisd from PAGE one)

his Indebtedness, which ultimately
reduces the maturity value of the
policy.
..An application of $4,000. 600 for
the fiscal year 1925 will be required
to provide the pro-rated annual
cost Of the insurance and to meet
cash payments to those not receiv-
ing such insurance. This does not
include administrative costs, which
will amount to approximately ST.
5OO,0OO the first year. For the fiscal
year 1926 an appropriation of $155,
5OO,OOO will be required and the an
>nual appropriations for the 2O-year
period will aggregate, according to
the lowest estimate, $3.50, 75S, 542.
These and the other figures herein
are from the Veterans Bureau. but
the treasury estimates are materially
more.
That part OF the, annual appro-
priation not required to meet the
cash bonus or TO pay policies matur-
ing on account OF death will be in
vested in government bonds. The
face value Of the bonds thus ac-
quired plus the interest thereon re-
invested will equal during the 20
year period the maturity value of
the insurance policies. aggregating
~ liz AO"SoS SO,ltO,UNtU,UUU.
The money spent for the acQuisi-
ton of these bonds manifestly can
not be spent for any other purpose.
no matter how urgent our other re-
qulrements may be. In other words,
we Will be committing this nation for
period OF 70 years to an additional
average annual appropriation of
$ll4.OO,OOO. This of itself. should
require most serious reflection, but II
we are TO have such commitment it
should be in some form which would
De In harmony with recognized prin-
| clples of government finance. The
provisions of this bill are not so in
harmony. Under it the government
Will not have in the fund in 1915 two
and a half billions Of dollars. All
IL Will have will be its own obliga-
lions. and it will owe two and a half
pllllons or dollars cash. 1t will then
De necessary to sell to the public
tnls TWO and a 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 a class of people that is not
taken from the whole people. Our
hrst concern must be the nation as
whole. This outweighs in its i'm
portance the consideration of q class
ana the latter must yield to the for
uier. Inc one compelling desire and
demand of the people today. ire
spective Of party or class, is for the
tax relief. The people have labored
during the last six years under a
heavy tax burden. This was neces-
sary to meet the extraordinary costs
OF the war. This heavy assessment
mas been met willingly and without
complaint.
We have now reached a financial
condition which permits us to tighten
,Hls tax burden. If this bill becames
law. law, we wipe out at once almost all
the progress five hard years have ac-
complished in reducing the national
oept. Ii we now confer upon a class
gratuity such as Is contemplated
by this bill we diminish to the extent
OF the expenditures involved the BEN
ents OF reduced taxes which will flow
not only to this class. but to the en-
TIRE people. When It is considered
that less than $40 a year would nav
Ior the average policy provided by
thls Dill. there is strong ground to as
sumo that the veterans themselves
would be better off to make that small
payment and be relieved Of the at
tendant high taxes and high living
costs which such legislation would
impose upon them.
Certainly the country would. We
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 legis-
iative enactment would do so much
to relieve agriculture. The drastic
executive campaign for economy in
government expenditure has but one
purpose-that its benefits may accrue
to the whole people in the form of
reduction OF taxes-I cannot recede
from this purpose.
II am for the interests Of the
whole people. The expenditures
proposed in this bill are against the
interests of the whole people do
not believe they are for the benefit
of the veterans
'The running expenses of the gov
eminent for services and supplies
must be met. Certain other obli-
cations in the nature of investments
for improvements are necessary and
often result in a saving. The debt
OF nation must be paid. The sum
Of all these is a tremendous amount.
At the present rate it is nearly $50
for each resident of our country, or
S175 for each average family every
year, and must be for some time.
This bill calls for further expen-
diture i'm the aggregate of nearly $50
for each inhabitant. and lays nearly
$175 more on each family, to be
spread over a period Of twenty
years. No one supposes the effort
will stop here. Already suggestions
are made for cash bonus, in addi-
ton, to be paid at once. Such ac-
ton logically would be encouraged.
IL this bill becomes law. Neither
the rich nor the profiteers will meet
this expense. All of this enormous
sum has to be earned by the people
of this country through their toll 1t
is taken from returns of their pro-
duction. They must earn It. they
must pay it. The people of this
country ought not to be required by
their government to bear such addi-
tional burden. They are not deserv-
ing of any such treatment. Our
business is not to impose upon them,
but to protect them.
eff this bill be considered as In
surance, the opportunity for such a
provision has already been provided
Nearly $4,000. 600, 900 of war risk and
government life insurance is now
outstanding. and over $500. 000. 900
has been paid on such policies. When
this provision was made in 1917 1t
was on the explicit understanding