The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-10-05

Situation
In Solidarity Of Both Re-
publicans and Democrats
Liberal Party alks
Heard.
By DAVID LAwRENCE.
(Copyr!ght BY The IntelnSencsr)

Washington. Oct. 1.-Two critical
situations are Gcve.or!ns-one inside
tho Republican PARTY and the other in
the Democratic r1rty--wh!ch may have
a ,ar-ccach;ne effect on American poll
Ecs
treaty with Germany. and the RepuoN-
cans are IT sizes and Serens over
sales tax as opposed TO the tax bill
passed by the house.
Several Of the most influential men In
the Democratic party have stated pr!-
vate,y that : tho Democratic senators
do NOT stand together as unit against
the German treaty theX will withdraw
their support from the party hencetortA.
The congressional elections are not far
away. The Democratic senator's who
are eager for party harmony sec storm
clouds ahead. This much Is assured
II the German treaty is rat!frd By the
aid OF Democratic votes. Y Will be a
long time before the sore will be healed
1t will split the party wide open. and
there Is already talk OK forming a
liberal party 70 hc composed OF pro-
league Republicans and pro-league
Democrats
Not SO Serious.
As for the controversy inside the Re-
publican party. il is fraught with much
danger. but the chances are 4 will not
do permanent Injury. The fact Is tho
farmer-labor coalition threatens TO en-
barraSs the Harding administration
more than has been apparent on the sur
face. The true significance Of Senator
Smotts advocacy ot sales tax at the
very time when the Republican leader
ship OF the house !s sticking 10 the
Older methods uf taxation Is just be-
coming clear.
Senator Smoot IS a staunch friend OF
Mr.. Harding. He isn't the kind to
throw monkey wrerches In the mach!n-
cry oe Republican progress. He wouldn't
be championIrE 4 sales tax II he didn't
have announcement from tho White
Eous-. He hEs l'a"d up behind. also.
about twenty-oue Republican senator's,
most OF whom are we'll known as mem
berS Of the inner circle OF the admins
tration. Postmaster General VIII Hays
In . recent speech at Cleveland said
kind words for the sales tax though he
doubted whether II could be applied At
once. Br!ad,y speaking. there Is moro
sympathy for The Smoot program than
Is admitted at the White House. One
explanation for tho reluctance OF MI
Harding 70 commit himself on tho sub
tect IS that from tho first ne felt he
oGSht 70 keep an open mind and permit
the situation 70 develop without eSecu-
tive suggestion. Tho snles tax has been
varsously pronounced as politically
dangerous and economically unsound.
TIE prejudice on tho latter ground Is
slowly being overcome. but Republican
leaders In the house still insist that no
sales tax can he devised which VIII not
pass the burden on 10 the ultimate con-
sumSr. IN which case tho American peo-
ri" might show their resentment at tho
polls 4 year hence.
Sales Tax AFFINITY.
The affinity for sales tax among ad-
min.xtration Republicans proceeds, how
ever. ON another set ct circumstances.
The IA, ,"r-lahOr group ts determined
10 see th.t the taxes on transportation.
especially freights. are repealed at once.
That hnocks out about $l3l.0O0.oO0
which will have 10 be made up some
where e.se. Those who want TO soc the
excess profits taxes and tho higher sur
taxes repealed are fearful lest the
farmer-labor group insist that the den-
ci, be made up out OF those two Items.
The sudden turn TO a sales tax Is really
based upUn the theory that II tho far
rer-laoor group will agree 10 II. they
can gracefully withdraw their oppos-
t!or 20 tho repeal OF tho excess profits
tax because the sales tax Idea Is de-
signed % do away with all sorts OF
taxation and reduce tho whole formula
70 collections from only four or 1ve
sources os revenue.
But tho agricultural and labor bloc
Is not veady to agree. Republican
Leader Mondell. who knows tho senti-
mont ot the house. Is urging that the
house BIZ be passed by tho senate be-
cause he fears the house will never
approve sales tax. Tho ight may be
settled IN tho senate. but there 10 a
good chance in tho end that q confer
eace committee OF the house may have
70 write the tax bill. Senator Smoot Is
making a real aSht for tho sales tax. He
saws the house bill merely relieves the
small taxpayer whose income Is $4,000
or under. and benefits tho man with an
income above $4,000 year and places
the real burden on that large class OF
progressive business men whose In
comes are between 1--WE and sixty-hve
thousand dollars a year. and on whom
the country depends for the ma!nten-
snce OF busG:css conditions. tho men
whose initiative has given employment
20 an army 81 workers and who are
preysn,N,! today from expanding be-
Cause uc tho excess profits and other
str.,uSiirE taxes The agricultural and
Iabor E"Iuh'."nuH arc arresttng the ef-
forts "s the conservative Republicans
who h.l!Avs N" TAX Program must be
written from tho viewpoint OF stimu-
latine business as n whole rather than
by trying 20 satisfy groups and classes