The Washington herald., 1921-08-09
PRESIDENT FACES
NUMEROUS TASKS
REQUIRING ACTION
CONTINUED FRoN PAGE ONE.


is to avert a threatened uprising
with taxes as its basis.
Debate in both branches of Con-
gress yesterday showed plainly the
concern of Republican leaders over
the tax situation. 1t is even more
evident in the House than in the
Senate because members Of the
, lower branch already are looking
to their respective campaigns for
reelection next year. They are Sc
riously troubled by the cry being
raised by Democrats and even by
some Republicans, like Senator
Capper, of Kansas, that repeal of
:he excess profits levy and. reduc-
tion of surtaxes on the incomes of
the very wealthy is politically a
dangerous proposal to carr back
tC the home folks. So Harding is
locked to for counsel.
Returns Today.
This counsel will be sought when
the President returns to Washing
ton today.
In the meantime new tax meas
ures are being suggested both in
the Senate and the House. These
proposals are in addition ID the
score which already have been men,
toned.
Senator Smoot introduced a reso-
luton yesterday to amend the Con-
stitution so Congress might tax all
Fecurities issued by States, counties
o. cities. Further issuance of tax
free securities would be prohibited
and those which are now tax-free
would be eligible for taxation.
In the House, several members or
the Ways and Means Committee
suggested taxes on all newspaper,
magazine and billboard advertising.
II also was proposed that second
class postal rates be increased.
Many Questions Involved.
The Presidents difficulty in Sc
lecting the American negotiators
for the disarmament conference lies
fl the general understanding that
the coming conference will prove a
clearing house for the settlement
OF many moot questions, with the
old league of nations fight always
in the background.
The personnel of the American
commission will be scanned closely
by irreconcilables who, in. the alb
sence of Information either as TO
the proposed agenda for the con-
ference or as to the Presidents in
tentions regarding a peace treaty
basis with Germany, are manifest
ing uneasiness. They are remain
ing quiet only because they wish
TO wait and, see what Is developing.
They are pfimed for a blow-off IL
they find Hughes diplomacy seems
to be drifting away from the
straight and narrow" path they
have laid down for the course or
this country in staying clear of for
eign entanglements.
The Loans Question.
While not directly connected
with the armament conference or
,he American personnel to be rep
resented therein, the question of
foreign loan funding also is one
which the administration wants set
tied before the armament confer
ence. This Is due to an official ex-
pectation here that coming over
with the. foreign delegates to the
armament conference will be off
cials authorized to discuss with this
government the question of loan
The Senate thus far has
baked at granting Harding's re-
guest that complete authority for
the foreign funding be
given Mellon. And, 1t may be
stated, Harding diplomacy in this
matter. will be exerted strongly in
favor Of giving Mellon the full
powers sought.
All in all the domestic situation
end immediate outlook are such
that the Presidents rest will prob
ably prove to have been timely, for
there Is plenty of troublesome mat
Ter just ahead. 4