Evening star., 1920-02-29
BONUS PROBLEM
=
UP TO CONGRESS
Over a Billion Additional Out.
lay Involved in Proposal
! for Ex-SoIdiers.
BY WILL p. KENNEDY.

BY WILL p. KENNEDY.
II now seems probable that Con-
gress is going to pass some sort OF
bonus proposition for service men in
the world war, and if it does it will
mean from $500. 100000 to $4,000
100000 of additional expense on the
government. which already faces big
deficit this year
There is rather general expecta.
ton that whatever bonus Is Voteu
will be provided through bond is
sue. The Secretary of the Treasury,
however. has already told the Leaders
in Congress. including the ways ano
means committee, that 1T VIII most
likely be impossible to float another
loan under 6 per cent, and this woui1
depreciate the value of liberty ana
victory bonds and raise havoc IN the
financial market.
The only alternative discussed is
direct consumption tax. at a time
when there is already compliant
against taxes now in force and the
members of Congress are DesleSe1
with demands for their revocation;
Some of the nearly 100 bills tnat
have been introduced providins Ior a
bonus TO former service men Suggest
that n special issue of governments
bonds be given to the former SOL
dierse sailors and marines 10 aFolu d
straight-away levy upon ths oepie.su
United States Treasury. Tnose wi'o
have been giving close study TO me
situation saw that these bonds would
be "scalped" at once. They ngure
that more than four -fifths OF them
would be promptly sold Tor wha,esen
they would bring. and the money
market would be disturbed oy sun
further imitation.
Not Seriously Considered.
The bill introduced by Representa-
tive Tom u. Mckeown, democrat Oh
Oklahoma. to give as bonus 10 tne
service men the interest colecteo on
foreign loans is not seriously con-
sfdered because the foreign govern
ments are not paying any interest.
Members of Congress. especially the
leaders on the money appropriating
and revenue raising committees rear
ly are deeply concerned. They express
a fear that after slashing the appro-
priation for the government depart
ments to the quick the entire saving
will be dumped into what they term
big political Jackpot" There are
number of the real leaders on Dotn
sides of the House who say frankly
that no bonus measure would ever ee
brought up only for the personal
political! advantage that some rev
members hope to get out of insistent-
~ demanding such legislation.
The situation boiled down is this:
Friends of the bonus legislation. led
bJ Representative Royal johnson, re-
publican. of South Dakota, himself a
world war medal man. made insistent
demands upon the republican steering
committee that party caucus should
he called to decide whether vote
should be allowed in the House on the
question of bonus. Finally the steer
ing committee was shown that il it
did NOT consent to let this come up in
the House a caucus would be called in
spite of it. When the steering COM
pressed upon the rules committee for
early action. A special rule was re-
ported to the House Thursday by
, Chairman Campbell which provided
measures from the various committees
and centralizing consideration OF
them in the ways and means commit
tee. This rule was adopted.
Action Deemed Expedient.
This action was deemed expedient
because it was felt that one commit
tee should consider all the bonus pro-
iation linked in to provide funds for
carrying out any bonus plan consid-
cred most desirable, it was cutting
corners to send them directly to the
revenue-raising committee.
Chairman Fofdney OF the ways and
of some sort of bonus. but there is q
: feeling Among. the leaders that the
ways and means committee will not
hurry Itself in passing upon this
problem. To Offset this there is de-
cidedsdetermination by friends of the
bonus legislation to, harass the COM
mittee until action is taken. and in
this they will be- assisted by many
democrats.
Demand Based on Three Facts.
Now. the ways and means committee
and members Of the House generally.
while not depreciating anything that
the American soldiers did or were
willing to do, see the bonus demand
based on three facts: C) the person.
bers: 90 that Canada and other goy-
ernments have done something in the
way of a bonus for their soldiers:
S3) that the soldiers who served feel
that II civilian employees of the gov
ernment were getting bonuses during
the war they ought to get something
now. AS regards this latter thought.
the former service men are aroused
. more by the high pay given to what
they call the patriotic slackers" in
shipyards than over the meager
bonus of $240 to government clerks in
:. lieu of an increase in salary The
fair minded soldiers realize that they
y cessities provided. while a great
many government clerks would have
been glad to swap their higher pay
2. for $40 month net.
Those who are considering this
problem do not forget that at the
patton in the world war this govern
ment insured its soldiers at low
cost. which was the most fofesighted
and humane act of any government.