The Washington herald., 1921-04-13
Both Domestic and For
eign Questions Are
Discussed.
STAND ON PEACE
PACT OUTLINED
President Stresses Home
Questions as of Prime
Importance.


lined his attitude on foreign and
domestic problems in his message
to Congress, read before joint ses-
sion in the House chamber yester-
day.
The bulk of the message was
based on home questions. The
crowded chamber waited expect
antly, however. for the President to
reach the passages dealing with
foreign relations, and when finally.
in clear. ringing tones he enunciated
the Administration stand with re-
gard to the Versailles treaty and
league Of nations. a sharp outburst
of cheering for a moment drowned
his voice.
Taxation Burden.
Restriction of national expendi-
lures of lifting of the burdens OF
war taxation were declared by
President Harding to be the most
pressing domestic problems.
In outlining other reconstruction
policies, the President urged i'm
mediate enactment of emergency
tariff legislation to benefit the
farmers, complete revision of the
tariff laws, budget legislation, in
vestiSation by Congress of the
railroad situation with view to
fixing the responsibility for present
conditions, maintenance OF an
American merchant marine, and in
Vestiagtion by Congress of open
price associations" which may have
retarded the decline of retail prices
in a degree proportionate TO prices
paid the original producer.
Harding Has Different View.
Optimism expressed by many Con-
gressional leaders. regarding the
possisIlity, OF a subtantiai reduction
In the aggregate revenue to be
raised from internal taxation, Is not
shared by President Harding The
declaration in the Presidents ad-
dress to Congress. that "thc most
substantial relief from the tax bur-
den must come. for the present.
from the read djustment of internal
anu lut ItNlSloh VI. VI NNpOo'
Of those taxes which have become
unproductive and are so artificial
and burdensome as to defeat their
own purpose" was at variance with
statements which have been made
by Representative Mondell. Repub-
lican leader of the House; Repre-
sentative Good, chairman of the
House Appropriations Committee
and other party leaders.
President Harding. in asserting
that receipts from internal taxes
cannot safely be permitted to fall
below $4,000. 100000 in the fiscal
years of 1922 and 1928" took a po-
sition exactly in accord with that
of former Secretary Of the Treas
ury Houston and the experts Of the
Treasury Department, who have
held over from the Democratic ad-
ministration.
Reference to War Debt Vague.
While the President made only a
vague reference to the question of
the war debt, his remark relative
to the $4,000, ,O0o.0O tax total gave
reason to believe that he may not
approve the policy advocated by
many Republicans. that no attempt
should be made to retire the float
ing debt from current revenues. but
that the Treasury certificates of in
debtedness totaling more than $2,-
500, ,000,0 900 should be funded into
long term obligations and the bur-
den of the war debt passed along
to a future generation.
Some members of the House Ways
and Means Committee were sur
prised at the Presidents estimate
of needed revenues, and would not
believe that his $4,000, 100000 figure
applied to 'internal taxes" until they
had examined the printed text of
the address.
Representatives Mondell and Good
and others who have urged an ctual
reduction in the aggregate to be
derived from taxation, have esti-
mated the total necessary revenues
CONTINUED ON PAGE THREE