The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-12-26

DoHuS space was devoted
Will Pass to the Townsend
$20O-a-month old age
pension plan. Next to the Townsend
plan, probably the hottest potato con-
fronting the administration and con-
gress is the soldiers bonus. 1t Is on
the doorstep and one not to be lodged.
Unless all signs fail, congress will pass
bill providing for immediate cash
payment of the bonus-and President
Roosevelt will sign It.
At the present time the total num-
Der Of bonus certificates in force is
approximately 100000. They have an
aggregate value of about $780, O00 900.
But from time to time congress has
enacted legislation permitting the vet
Grams of the World war to borrow
money from the government on these
certificates and figures supplied by
the Veterans bureau here indicate that
these loans total about $1.700OO0,0O0.
Thus 1t Is made to appear that If con-
gress provides for immediate payment
of the bonus and the President ap-
proves, there will be a new drain on
the treasury of approximately $780,
100000. While there is no connection
directly between the Townsend plan
and the soldiers bonus, the two pro-
grams are linked in one way: each
proposes to take money out of the
federal treasury.
Withdrawal of further money from
the United States treasury for what
ever purpose becomes an important
question at this time because our ma
ton now shoulders the greatest debt
1t has ever known. Within the last
week, the treasury has borrowed an
additional $900,0O0,00O and at the same
time 1t refunded about S4S0,000,000
more. Refunding is simply paying off
one bond by issuing another so that
the financial transaction in the middle
If December involved almost S1.400.-
100000 and when that job was COM
pleted the debt of the United States
cached new peak of 30.50O, 100000.
or $240 for every man, woman and
child of our 100000 population.
Now, $24O may not seem like much
of debt for each person to assume
but its payment-and debts have to be
paid-devolves not upon 130,000OOO
people but upon considerably less
number. The national debt, therefore,
must be considered from the stand.
point of the burden it places upon a
comparably small number of people
those who pay the taxes.
Payment Of the bonus or the Town
send old age pensions necessarily must
Win Add While there are
to Debt many authorities
who insist that the
national debt can go much higher with
out impairing the value of the bonds
the government issues, the fact can
not be disputed that any additions to
the present financial burden reduce
the possibility of early payment Of
that debt.
Then, the question of its mainte-
nance becomes important. The debt
bears interest which must be paid
every year. On the present basis, the
interest on the national debt alone ap.
proximates $750,0OO,OOO per year and
that interest results from probably the
lowest rate we will see for many
years. Indeed. the chances are that
any future borrowings or refundings
will have to be accomplished at inter-
q rof hon fha
now is paying and that means, of
course, an increase in the annual in
terest charge.
Whatever the merits are of either
the Townsend old age pension plan
or the cash payment of the bonus.
the fact remains that congressional
approval of either one or both neces-
sarily means the piling up of addi.
tional debt. / know that the Town
send plan supporters contend that the
old age pension can be made self-sus-
tanning but it Is a physical impossi-
bility for it to be self-sustaining in the
first few years of its life and that obli-
cation necessarily must be assumed by
the treasury. There is no provision
whatsoever for raising the money with
which to pay the soldiers bonus. 1t
will be simply cash outlay by the
treasury If congress orders it done and
the treasury either must have new
taxes or must borrow the money. There
is no possibility now that either con-
gress or the President will propose
seriously the laying of new taxes to
meet the bonus payment because.
after all, 1886 is an election year and
President Roosevelt Is seeking re-elec-
ton.
The history Of the soldier bonus
fight is one revealing consistent oppo-
sition by Presidents
Fought by to it's PAYMENT
4 Presidents From the time 1t
was first proposed IN
congress In the administration of Pres.
ident Harding, no President thus far
has been willing to support it. Hard
ing, Coolidge, Hoover and Roosevelt
up to this time, have fought payment
of the bonus in lump sum. Each had
his own reasons but each reached the
same conclusion, namely, that it
placed too much of drain on the
treasury and consequently too much
of burden on the taxpayers of the
country. Each President has held it
to be class egislation-appropria
of funds of all for the benefit of a
few.
With the advent of the Roosevelt adj
ministration and its New Deal poll
cies many recommendations were made
and acted upon approprating money
from the general treasury for the use