The New York herald., 1921-12-06
President Expected to Make
Suggestions Regarding
War Debts.
HOUSE PLAN IS FAVORED
Commission of Five to Handle
Problem May Be De-
cided Upon.

Special Despatch to THE New York HmALp.
New York Herald Bureau,
Washington, ID. c., Dec. B.
The Sixty-seventh Congress opened
its regular session at noon to-day with
n well prepared programme which the
leaders will endeavor to force through
at the earliest possible moment. The
programme has the approval Of presi-
dent Harding. and harmony between
the White House and the Capitol is
anticipated.
resident Harding will deliver his
annual message in person at q joint
session OF the House and Senate at
1880 r. M tomorrow. He Is ex-
pected to dwell at length upon the
debts owed this country by European
Powers. contracted during the war,
and will give his moral support to the
movement to have these obligations
acknowledged and settled by the ap-
proval Of the so-called allied funding
bill.
The President is likely to suggest
also how this delicate proposition can
be handled without giving any offence
10 the European Powers, or in any
way causing embarrassment to tho
arms conference.
The national budget, prepared by
Gen. Charles G. Dawes. Director Of the
Budget, calls for appropriations ag-
gregating $s,so5.75I,727, reduction Of
s462,167.6s9. as compared with the es-
.imated expenditures for 1922, and
s2.o32,2s5.s62 less than the sum ex-
pended by the Government in 1921.
In his letter submitting the budget,
the President recommended legislation
in connection with the 1925 naval ap-
preparation bill with view to "the
eventual automatic release of $780,
100000 now held In the navy supply
account."
The budget shows that $1s5, ,o00, 600
has been asked by the Navy Depart
ment for increases in tonnage, which
will be wiped of the slate In the event
the Arms Conference adopts the
Hughes programme for the scrapping
Of capital ships.
The tariff question will undoubtedly
receive much attention in the Presidents
message. and he may touch upon the re-
duiron,ents of the merchant marine.
However. It is understood that he intends
20 submit to Congress a special message
IN January on that subject on which he
will urge subsidy for American ships
as means to compete with vessels fly
ing foreign flags.
Funding Bill Up To-day.
While Congress. during the extra
session. was disposed to kick over the
traces" and ignored some Of the recon-
nlendations OF the President and Repub-
iican leaders, It is believed that both
bodies Will be more tractable at this ses-
sion.
Soon after the Senate met to-day at
noon Senator Penrose (Penn.). chairman
Of the Finance Committee. announced
that he intends TO bring before the SEN
ate tomorrow the so-called allied fund
ing bill and that he intends to keep II
before the Senate until its final adoption.
The Senator explained that the House
bill will be considered in the morning.
and intirnated that II may be substituted
for the Senate mesaure.
The House bill provides for the ham
ding of this important question not by
the Secretary of the Treasury alone, but
by a commission of Ave. to be named
by the President. 1t Is believed that this
measure has the support OF President
Harding. II is possible that the bill will
be amended TO give Congress some rep
resentation on the commission.
Senator Penrose and other Republi-
can leaders expressed the hope that the
funding bill will be passed at an early
date and the impression In Congress is
that II will.
Senator Penrose also announced that
his committee expects the new tariff
bill ready for consideration by the
Senate early In January. He pointed
out that hearings are being held on the
different schedules, and no felt sure
tho measure will be approved by the
Senate Finance Committee within the
next few weeks.
Big Cut I'm Estimates.
The Senator expressed the firm con-
viction that the tariff bill will be APP
proved by the Senate 'once Va se.
vote" This Congress is the nrst to
deal with the Government expenditures
In budget form. President Harding To-
day submitted to Congress n comprs-
hensive estimate OF the financial re-
quirements Of the Federal Government
for the next fiscal year.
The navy supply bill will no doubt
pest on It's oars pending n settlement of
some sort OF the Hughes programme
submitted Mt the arms conference. The
measure dealing with funds for the
army Will likely be held over for late
consideration because It may also be
affected.
That there win be considerable dis
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