New-York tribune., 1920-05-20
Caucus Of House Mem
bers, III to 40, Comes
Out Squarely for Sol
dier Relief Measure
Legislation & Flatly
Opposed yHouston
Treasury Head Declares
Congress Should Pro-
vide Funds toRunQJ. s.

w WASHINGTON, May 19.-House Re-
publlcans in party caucus tonight,
came out squarely for enactment of
soldier relief legislation as advocated
by the American Legion.
Before deciding in favor of the legis
ation the Republicans refused, 141 to
40, to-, postpone indefinitely all action
on relief legislation.
Several Republican leaders, including
a majority of members of the steering
committee, were said to have supported
the motion, but there was no record
vote.
The only record vote on the caucus
was the defeat, 95 to rs, Of motion
by Representative Wood, of Indiana,
to strike out the provision to carry
out the LaneMondell plan for settle
ment and reclamation of Western lands,
The action OF the Republicans was
taken after four-hour fight, in which
opponents Of relief legislation de-
clared the country could not stand
added taxes, as made necessary by the
bill A letter from Secretary Houston.
opposing any bonus, sent to-day to
Chairman Fordney, of the Ways and
Means Committee, was not presented
to the meeting. although copies were
circulated among members.
American Legion Plan
The relief plan of the American
Legion contemplatcs four provisions
up insurance, and vocational education.
Each veteran would be given the choice
Of any one of these.
Secretary Houston's letter, which re-
suited from an inquiry by Chairman
fordney as to the Treasury's views on
the "insurgent' Republican, Democratic
proposal for retroactive so per cent
war profits tax, declared that Congress.
instead of devising new means Of
spending money should concentrate its
efforts on raising funds for current
government expenses.
Nj. Houston said it was a matter of
serious concern to have the govern
ment appear in the market every few
months Tor loans, as this course would
result IN additional credit expansion.
with higher prices and a more difficult
financial situation.
Letter of Secretary Houston
The Secretarys S letter follows:
u received your letter of May 1 with
the Enclosed copies of bills, H. Z. 1878,
introduced by Mr.. johnson, and Fl. r,
1902, introduced by Mr. Rainey. to
provide for the payment of adjusted
compensation to the veterans of tho
Word War. Both bills impose an 90
per cent profits tax.
me most serious aspect Of this COM
pensatlon matter, as | pointed out
when had the honor Of appearing
before the committee, is the proposal
greatly to add, especially at this time
to the present grevious burden restjnr
on the people and the Treasury. The
method OF financing the proposal raises
grave problems, but it is secondary.
Inc very heavy burdens which will
rest on the Treasury by reason Of laws
already enacted, including particularly
the recent railroad laws, which, it is
estimated, will entail an expenditure
or Approximately $1,000, 100000, and
also by reason Of the delay in making
provision to realize upon the govern
mc4t Us investments in railroads and
ships, taken in connection with the
existing credit situation, suggest the
need of grave consideration of the
question whether, aside from and in
addition to any taxation which it
might be necessary to impose in order
to pay a bonus to the soldiers. it NAV
not be necessary to provide for meet
ing the necessities of the government
IN larger measure from taxation.
"The total Indebtedness Of the gov
ernment maturing within three years
represented by Treasury certificates,
war saving certificates and Victory
notes is in the neighborhood of Ss,-
O0o,000,o00. 1t is no longer possible to
finance the current needs of the gov
ernment in part by the issue Of Treas
(Continued page eeven)