Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-27
EFFECT OF PAYING
BONUS DISCUSSED
Government Could Easily
Borrow Money, but 1t Would
Affect Refunding Plans.
BY JOHN F. SINCLAIR.

NEW YORK, January 1I.-SnOulu Tn
veterans compensation certificates b.
paid in cash by the Government? TIL,
American Legion, through its Executiv,
Committee, says yes; but the Secretar!
of the Treasury OF the United States
Andrew w. Mellon, says no.
The cash value of these certificates il
estimated at from $2,500,000,000 Il
So 500, 200, 900, depending upon just how
the figuring is done.
Secretary Melons opposition to cash
payment is based on the ground thai
it will cause a vast imitation, and viii
disorganize the plans of the Treasury
for an orderly refunding of the present
national debt
The United States Treasury has nj
money, except what it raises by taxation
or by borrowing New taxation is out
of the question in these times, so the
Government would have to go into the
market and borrow the necessary money
Could the Government borrow this
sum at this time, when other nations
are having hard times to borrow? Ger
tainly. the American Governments cred.
it is ace'high. It could borrow all the
money needed. and get is quickly. OF
course the interest rate, depending upon
the length of the loan, might possibly be
around per cent.
In fact this great sum is a small
amount really for the United States
when one recalls the amount of money
raised by the Government during war
times-15 times as much.
Those championing the bonus in Con-
gress-and there are many-Say that
these new billions of new credit would
be the means of starting the wheels OF
industry again.
But that is a difficult question to an
swer. My own Judgment is that 1t
would cause a sag in business Tor a
short time, until the money had got
into the banks, after which, as a result
of the new money and credit available,
business would go forward.
1t looks now as if this question viii
develop into the big fight of the pres
ent Congress.
Value of Silence.
George F. Baker, 81, chairman of the
board of the First National Bank OF
New York, was a giant in finance 40
years ago, before any present Wall
Street figure was prominent. Even
now. he's known only by reputation, to
the millions; well known to few.
He never gives interviews-at least,
never in recent years. The only direct
quote" interview he ever gave is worth
repeating-doubly so after year, when
so many business predictions went hay
wire.
Here is his only interview-crisp and
wise: -.
"The business men of America should
reduce their talk at least two-thirds.
Every one should reduce his talk.
There is rarely ever a reason good
enough for anybody to talk. Silence
uses UP much less energy. ! don't talk
because silence is the secret Of sue
cess. I did nothing unusual when l
began. My first job. that I chose to
call a job, was in a small bank in
Albany I was very quiet worker and
that served to distinguish me. 1t was
there that ! made and invested my
first thousand dollars. Then simply
planned my way to Wall street. 1t
was with this money that l bought the
First National Bank"
wonder If it's as easy as all that!
Farm Prosperity.
Fred Murphy of Minneapolis has
been telling New York and the East
about farm prosperity in Minnesota
Instead of talking about his State as
a country of milk and honey" he re-
fers to it as land Of milk and
money"
The New York Trust Co. index says
that $4,000, 0o0, 000-about one-fourth
of the total annual income received by
the American farmer for all farm
products-is derived from the sale Of
dairy products.
This is about 2l2 times the annual
value of the cotton crop, 212 times the
value of the beef and veal crop and
more than times the value OF the
wheat crop.
In the period from 1918 to 1928 the
per capita consumption OF milk IN the
United States increased from 40 uo
566 gallons. while the per capita con-
sumption of butter increased during
the same period from IA to 17.3z
pounds: cheese, from 3 to All POUNDS
and ice cream, from 207 to 2.SC
Putting it another way, the pei
capita consumption of dairy products
in the United States increased IRON
S36 pounds to 1882 pounds-an In
crease of 1876 pounds IN 10 years.
Minnesota, Iowa and Wisconsin sup
ply about 40 per cent Of all the butter
manufactured in the United states
while Wisconsin alone produces abou
SIS per cent of the cheddar chess
made in the United States.
Nor is the dairy industry confined u
any section. First it developed In tn
Middle West. then in the Pacific Coas
states Washington, oregon and Cali
fornia.
But of recent years the Souther1
States have come into their own, 10
butter production in those States ma
increased from 24,000000 pounds 4
1918 to more than 100,000.000 pound
in 1928. while Is Southern States whic
had no cheese factories in 1914 use
more than 6,500,000 pounds OF chees
last year.
Milk and money" is a good slogan
because it is true one.
Mass House Building.
Glenn Frank, 43, president Of tf
University of Wisconsin, in reply TO
question of what is going to. take tt
place of the cheap automobile as U
major factor in the prosperity OF u
next 10 years, has suggested that
will be the cheap, substantial, beaut
full small home built on a mass-prt
duction basis and financed adequate
so that the purchasers can retire the
obligations virtually on mooea
rental basis"
Houses have always been individus
personal and expensive. They ha'
never been built on maSs-productlC
basis. There is no reason why an aut
mobile should be built on a mass-pr
duction basis and house not.
Under such a plan, residential bull
ing contracts would move ahead
leaps and bounds and the lumber bus
ress would feel the effect immediate
in increased sales. So would hous
equipment dealers.
It's a good suggestion.
Gandhrs Release.
Gandhi, 86 pounds of human dyn
mite. has been released from his pris
cell in India? All India-millions
its people-was waiting the evei
Great celebrations today are to be M
all over India.
Great Britain is tired of fighting
dia. Gandhi and his followers Of