The Washington herald., 1921-07-13
Penrose Moves Return to
Committee After Hard
ing's Address.
VOTE ON MOTION
PROBABLE TODAY
Action on Tax Advice of
President More Dih-
cult matter.
TIE f.n text Of the PrsHdenfs
DeeeA VIII be found On fsSe .

delivered reCommenoAhion -
d.nt Harding yesterday that It side-
track the soldier bonus bill and
h..ter revision of the tax laws, the
senate Immediately proceeded to It's
task.
The President asked that the DO
nm. hill be sent back to the nnance
committee, and that its adoption De
deferred until after the tax PROB
lem is out of the way, war deots
are refunded and foreign loans ad-
justed. He also stressed the neeo
fer early changes in the system OF
taxation.
Flinging aside the caution which
has characterized his attitude TO-
ward the bonus in the past, the
President bluntly characterized the
measure as a "menacing enort TO
expend billions in gratuities- -
.wouId InperiI Natioa.'
He painted the government
financial outlook in dark colors and
frankly declared that enactment OF
the bonus not only would render
tax reduction impossible but would
greatly imperil the financial sta
biiity of our country"
breast, and that of yours and the
grateful people of this republic"
said the President But no thought
full person, possessed with all the
facts, is ready for added compensa-
tion for the heaithful, self-reliant
masses 4 our great armies at the
cost of a Treasury breakdown which
will bring its hardships to all the
citize0s Of the reDublfc."
Mr.. Harding. however, declared In
unmistakable language for the full
est relief to disabled veterans. but
expressed fear that enactment of the
bonus would So cripple the Treas
TRY that the government could not
discharge its first obligations to
those we must not fail to aid
After a survey of more than four
months. contemplating conditions
which L am sure would stagEer alf
Of us were 1t net for our abiding
faith in America, I am fully per-
suaded that three things are essen
tfal to the very beginning of a re-
stirred order of things" the Presi-
dent said.
The s1Three Things.n
These are the revision. including
reduction, of our internal taxation.
the refunding of our war debt and
the adjustment of our foreign loans.
1t is vitality necessary to settle these
problems before adding to our
Treasury any such burden as is
contemplated in the pending bill
(the bonus bill)."
Later the President said:
There is confessed disappoint-
ment that so little progress has
been made in the readjustment and
reduction of wartime taxes. I be-
lieve you share with me the earnest
wish for early accomplishment"
The Senators listened to the
President in silence during his
reading Of the $500 word message
Senator King, of Utah. a Democrat.
at one time started to clap his
hands when the President was talk
ing about economy. He stopped
suddenly, however, when he glanced
about the chamber and observed
that no one was joining with him.
AppIauded Aftervard.
The President. however. was
warmly applauded when he had
concluded. Senator McCumber. Of
North Dakota, who has been in
Il,
in the cIapping.
chairman of the Finance Commit
tee, Immediately arose to move that
the bonus bill '.e sent back to COM
mittee when the President had left
the chamber.
Senator Penrose also said that the
bill to authorize funding of the
Aah - af =
considered by the committee at
be reported out favorably by the
end of the week.
The motion to recommit was the
signal for the beginning of an at
tack on the motion from the Demo-
Gratis, led by Senator Robinson, of
Arkansas. He denounced the mo-
tion as an attempt to kill the bill.
Senator Robinson declared the
President had added nothing to the
information already possessed by
the Senate.
Senator King interrupted a speech
by Senator Jones. of New Mexico, a
Democrat, to remark that he thought
u was a highly courageous thing for
the President to come before the
Senate. Senator Jones was discuss
ing the propriety of the Presidents
requests
Il think IT was highly improper"
put in Senator McKellar. of Ten
nessee. another Democrat.
Senator Pat Harrison, of Missis-
sippi, Democrat. agreed with Sena-
tor Mckellar. declaring the Presi-
dents message was purely destruc-
tive"
Republicans, for the most part,
paid little attention to the speeches
OF the minority, and many times
during An afternoon of debate the
chamter was almost deserted. 1t
was taken as a foregone conclusion
that the Penrose motion would even
tually be adopted, and Il was known
also that the Democrats would in
SYST on forcefully denouncing the
Administration program. A vote on
the motion may be reached TODAY.
but there Is possibility of further
delay. The minority, II was believed,
would not endeavor to carry ON a
protracted filibuster because of AL
most certain defeat.
The remainder OF the PresidentiaI
program Is more difficult of accom-
plishment. Tax revision necessariIy
will await disposition of the tariff
-