Evening star., 1930-06-23
Facing a Deficit.

to Congress the question of an increase
in Federal taxes along with legislation
for World War Veterans, which is de-
clared to be unsound by Gen, Hines,
head of the Veterans Bureau, and
which, as now drafted, has not been
demanded by the American Legion.
Passage OF the pending veterans bill
has overnight taken on a new aspect.
1t is no longer merely a question of
putting through bill which does not
have the approval of the President. It
means legislation which will increase
governmental expenditures so enor-
mously that the taxpayers of the coun-
try will be forced to meet higher levieS.
It means deficit in the Treasury of
the United States of large proportions.
The passage of a bill by majority of
the Congress which does not meet the
views of the Chief Executive is not
new experience.
Practically every President has ex-
perienced such conflict of opinion
with the legislative branch. But the
deliberate passage of bill which will
cause q deficit in the Treasury, in
time of peace, is something else. The
legislators will have to determine
whether they are willing to go to the
country with such a record.
Legislation for the veterans of wars
is rightly popular. The country owes
debt of gratitude to the men who
bore arms in its defense. But the coun-
try has not been a laggard in the mat
ter of contributing to the support of
disabled veterans or in generosity to
the whole veteran class. Gen. Hines
points out that the country is now pay
ing approximately SSH, 100000 annual
iy to veterans under the legislation now
on the statute books. Commenting
upon the proposed bill, which is esti-
mated to add to this annual expendi-
ture by from 02,000,000 in the first
year to $225,o00, 900 in later years, as
framed by the Senate finance commit
tee, and even to $4oo, 100000 a year
as passed by the House, Gen. Hines in
sists that the legislat ton now proposed
does not follow the time e-honored Gus
tom Of caring for men whose injuries
and disabilities are traceable to the
service of the country, but proposes to
include thousands upon thousands Of
men whose disabilities have arisen since
the termination of the war which are
not traceable to their war service. He
calls attention to the fact that the
average age of the World War veterans
is only thirty-eight years, far below the
age at which it has been the custom of
the country to extend general pension
to veterans Of wars.
Even if the country desires TO pen
sion every veteran Of the World War
and other wars, 1t is Gen. Hines con-
tention that the country should cut the
coat according to the cloth at hand.
This is the view, too, of President
Hoover and Secretary Mellon. The
country should be generous to its de-
tenders. At the same time it must
consider the whole body Of citizens and
the resources of the Government, de-
rived only from the payment of taxes
by the people.
President Hoover has on several occa-
sions during the present session warned
Congress that If it continued to roll
up appropriations there would be a
deficit in the Treasury and the country
would face higher rates of taxation.
FrTI,~ ~
derided by members of the Senate, some
of whom insisted that the President
was insulting the Congress and seeking
to make capital with the people against
the legislative branch. Now the Con-
gress is confronted directly with the
prospect of forcing a Treasury deficit
and higher taxation on the country
Doubtless efforts will be made by some
of the supporters of the veterans bill
to avoid the blame for such a condi-
ton. But they cannot escape it. In
cidentally there is a vast number of
veterans of the war, along with the rest
of the people, who will feel the pinch
of increased taxation If this bill be-
comes law as it now stands.
President Hoover has not closed the
door to all veterans relief legislation in
his letter to the Republican leader of
the Senate. Mr.. Watson. He has said
that a bill could be drafted, covering
certain meritorious cases, which he
would sign. He. said much the same
thing when he vetoed the Spanish War
Veterans pension bill, but his veto was
overridden by. Senate and HOUSE prac-
tieally without consideration of the
warning given by the Chief Executive
That bill increased the governmental
expenditures by merely $11 ,000o 900; and
while it could help bring about deficit
it could not accomplish that result
Of itself. The pending veterans bill
however, will do just that. thing.
Defense Of the new tariff is a waste
of oratory. If it works out prosperously