The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-04-27
Secretary Attacks
Payment of Bonus
Mills Uses. ForcefuI Language
in Opposition Talk Before
House Committee
CLAIMS DEVICE DISHONEST
Charges It Is Obligation Not
Due; Says Money Would
Not be Honest

Washing ton. April 27.-lR;-Secre-
tary Mills Wednesday loosed a power
full administration offensive against
cash payment Of the soldiers bonus.
He spoke before the house ways
and means committee appearing as a
witness in its extended hearings on
the issue.
In language no less forceful than
that Charles G. Dawes employed be-
fore the same committee a week ago,
the new treasury chief drove home
his opposition to the s2,400,0o0. 900
outlay. whether paid in borrowed
money or through initiation of the
currency.
THE measure now before you is
designed to pay an obligation not
due, in money that Is not honest, "
Mills said. THE adjusted service GER
tificates do not mature until 1945. To
pay them at their face value today,
less the amount that has been bor-
rowed on them would, in effect. al
most double the payment provided
for by the adjusted service compen-
sation act and would involve an i'm
mediate cost to the government Of
about $2,400, 100000.
I'm other words the government is
to pay almost twice the amount it
to pay"
ITO select this moment" he went
on. ito destroy our hopes of a bal
anced budget and to deal a smashing
blow to national confidence, is to me
simply incomprehensible. The pro-
ponents of this measure fully re-
cognized that the cost cannot be
borne by legitimate means !. They
would discharge what they state to
be solemn obligation of the govern
ment -. by setting the printing
presses to work printing dishonest
dollars.
For great, powerful nation :. i.
deliberately to adopt this insidious
and essentially dishonest devi c
would to ny mind be worse than an
act Of financial bankruptcy. It
would constitute moral bankruptcy.
Destroy confidence and you dry
up credit and paralyze enterprise. No
measure was ever drafted better CAL
culated to destroy confidence than
the one now before you. Enact 1t in
to law and you will stifle all hope of
an early economic recovery and write
the most lamentable chapter in
American history"
Though he thus dealt chiefly with
the Patman bill for an issue of treas
ury notes to cash bonus. Mills at
~
vocate borrowing the necessary funds.
THE financial position Of the gov
eminent is not such as to permit the
treasury to meet this demand" he
said. I'VE are faced with an enor-
nous deficit. No additional $780,
100000 can be raised by taxation.
Taking into consideration all of
the elements Of the existing situation,
no such sum can be borrowed except
at excessive cost. with serious en-
barraS5ment to- the government in
meeting its unavoidable obligations
and with damage to the public
credit"
When Mills concluded the state
ment. Representative Ragon. Cd,
Ark. asked what amount in securi-
ties the treasury would offer for sale
this year.
"Over and above refunding opera
tions about $500, 100000" Mills re-
Piled.
To further questions. Mills empha
sized that 1T is very desirable to ex-
pand credit"
II have no quarrel with ANYONE
who wants to stop the def.ationary
process" he said. But do have
quarrel with sucl, an essentially dis
honest device"
What effect do you think the new
reserve bank policy of increasing pur-
crases of government bonds will have
toward charging credit" Ragon
asked.
"A most decided effect" Mills said.