The Washington times., 1924-02-27
By JOHN r.. QUINN,
National Commander, the American
Legion.


INDIANAPOLIS, Ind, Feb. 81
When 1t was seen In 1923 that some
new excuse was needed to prevent
the veteran from collecting the obli-
| cation owed him a new objection
was not long in coming.
| The Secretary of the Treasury
announced there could not be tax
reduction If a bonus" were paid.
| The fallacy Of coupling these two
unrelated issues, the Legion pro-
ceeded to point out in this fashion.
Treasury aactuaries had prepared
for the Senate Finance Committee
an estimated cost Of adjusted COM
pensation which totaled $81 600, 900
a year for the first three years. The
Treasury Departments figures, not
ours, remember.
The surplus was 1910, 900 az
announced by Mr.. Mellon.
So the Legion substracted $S1 ,000,-
900 from $4,000 900, and found
that taxes could be reduced some
| $289, 000. 900, and still pay the obliga-
ton owing to ex-service men.
The Treasury Department failed
to answer this argument. but did
some more figure-guessing.
| A new set of cost estimates OF
adjusted compensation measure were
out trebling the previous cost.
Bill Remains Same.
Yet the bill was exactly the same
even to a comma.
The one thing this new set of
variable statistics did was to leave
less room for tax reduction If the
adjusted compensation measure was
passed. But even with this new
guess tax reduction to the extent
of nearly one hundred million dol
lars was possible.
The American Legion did more
than answer every argument against
the measure advanced by the oppo-
sitton. Though the Legion has
never discussed how the money
should be raised, believing that q
debt owed should be paid regardless,
1t asked Mr.. Mellon some questions.
This Government was and is re-
ceiving approximately $t60,000.000 a
year from England as interest OH
her debt, and will continue to re-
ceive this amount for sixty years.
Use Debt Payments
Why not use a part of this
amount each year to pay adjusted
compensation?
President Coolidge in his first
message spoke of economies to be
effected In Governmental admins.
tration probably amounting TO
$220, 00O, 900 to $3.50, 900, 900.
Here was enough money to pay
adjusted compensation for three
years. But the Secretary Of the
Treasury failed to take this into
consideration, when estimating an.
ticipated revenue upon which plans
for tax reduction are based.
Then the Legion did a simple
sum in addition. 1t took the 1870.
100000 surplus for the year ending
1928, added it to the $3.50 900
estimated surplus for the year end
ing June 30, 1924. plus saving in
1925 when both adjusted compensa.
ton and tax reduction would be-
come effective.
1t was found that by that time
nearly a billion dollars would be
available in the Treasury for com.
penSation payments. Why not, the
Legion asked, use some of this huge
sum to pay just and recognized
debt?
: These figures are not the
Legion's, not propaganda. A. Piatt
Andrew, Congressional Representa-.
tive from Massachusetts,, prepared
them from Treasury Department
statistics.
Cites Worlds Work."
And in speaking of the Treasury
Departments variable estimates of
cost of adjusted compensation.
THE Worlds Work." a magazine
opposed to 1.-The bonus" declared
the Treasury Department was
either a bad guesser or had de.
liberately misled the public. The
Legion leaves it to the puolic to
decide.
The American Legion has time
and again proved that adjusted
compensation can be paid without
working hardship on anyone. I
further add that opponents Of ad.
justed compensation cannot ad1uce
any tenable reason why it should
not be paid-and at once.
nn~UHA