It is difficult to understand The Post's continuing campaign to penalize the elderly, either by raising taxes on Social Security or by reducing benefits, to pay for the excesses of past and present Congresses {"Where the Money Is," editorial, June 9}.

Of course that's where the money is, or at least part of it. But it is equally true to say that the money is in the bond market, in the stock market, in certificates of deposit, in corporate profits and dividends (including those of The Washington Post Co.), in the paychecks of American workers and in the printing room of the Treasury Department.

Let's get one thing straight: Social Security benefits are not financed out of general revenue, but out of a levy on "earned income." The enormous surplus being generated by the last remake of the Social Security system is exchanged for government paper, and the proceeds are used to offset funds that should be raised from general taxation. Reducing benefits now, by whatever method, is sticking it to the elderly now, and using the surplus now to replace general revenue is sticking it is to the elderly of the year 2200.

Don't just go where some of the money is, know where the money should come from. WILLIAM M. KING Alexandria