Evening star., 1926-05-02
PRESIDENT SIGNS.
PENSION BILL WITH.
ECONOMY WARNING
Spanish War Veterans Will
Get S19,OO0,O00 Larger
Sum Annually.
BY the Associated Press.

President Coolidge late yesterday
signed the bill to increase pensions OF
Spanish War veterans and their de-
pendents nearly $19 100000 annually.
At the same time, in a formal state
ment. he said his approval was not to
be taken "as an encouragement to fur
ther laws for large continuing apprO-
priations." He gave a warning that
it might be necessary to increase
taxes IL governmental expenditures
are greatly increased.
The President waited until late in
the last day on which, under the law.
he could act on the measure. He
made it clear that he had delayed his
decision solely on account of the Gov
ernment financing involved.
Although he had been of the opin-
ion the increased outlay would raise
the expected deficit for the coming
fiscal year to approximately 100000
600, Mr.. Coolidge said savings un-
doubtedly could be devised to absorb
the increase carried in the bill.
Text of Statement.
In his statement the President said:
1T has been necessary for me to
delay approving the bill increasing the
pensions Of the Spanish War veterans
and their dependents on account OF
the Government financing which is
involved. have recognized that
those connected with the Spanish War
have always held a position of in
equality, so far as Government
bounty is concerned, compared with
those connected with other wars. 1t
cannot be denied that they are en-
titled to be placed on a higher rate
Of pensions than they are now re-
ceiving, II others are entitled to what
the Government is doing for them.
According to the best estimates
that can be secured. the results Of the
present financial year. which ends
June 80, will show a moderate surplus
This can be used to meet moderate
expenditures that are not continuing
in their nature, but require but one
appropriation. For the next fiscal
year, present indications show a def
cit Of little over s21 100000. When
the requirements of the Spanish War
pension bill of nearly $19,000,000 are
added, the deficit becomes SAC, 900 900
Law on Usual Basis.
This bill calls for continuing ap
| propriationS, once 1t becomes law, and
each budget must be made with q
recommendation for sufficient fund:
| to pay these additional pensions. II
it were in the nature Of a law fol
| building and construction work
when the budgets are made up in the
future the state of the finances could
| be considered. II the money were not
available. such building and construc
| tion would be delayed until there are
funds in the Treasury. Such laws are
on a different basis than laws for pen
sions.
1T has been necessary to consult
| the Urea sury. 1 understand thai
means, in all proba bility, can be de.
vised by savings in other directions 10
meet this moderate additional expendi
ture 1t has also been necessary to
confer with various members of the
Senate and House as to further addi
tional legislation calling for continu
| ing expenditures. l did not wish the
| approval OF this bill to be taken as
an indication that other legislation OF
that nature could also be financed,
or to have it considered as an en-
| couragement to further laws calling
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