The daily times., 1921-10-05

The Democrats Are Divided
Over the Treaty With Ger
many and the Republicans
Are at Outs Over a Sales
Tax as Opposed to the
House Tax Bill.
(By David Lawrence
Copyright, 1921, by The Daily

(COpyTlSnI, 1SI1 ny ne DdlIy
Times.)
Washington, Oct. 1.-Two critical
situations are developing-one inside
the Republican party and the other
in the Democratic party-which may
have far-reaching effect on Ameri-
can politics
treaty with Germany and the Repub-
licans are at skies and sevens over a
sales tax as opposed to the tax bill
passed by the House.
Several of the most influential men
in the Democratic party have stated
privately that if the Democratic Sem
ators do not stand together as unit
against the German treaty, they will
withdraw their support from the par
ty hencefOrth. The congressional
elections are not far away. The Dem
Ocratic Senators who are eager for
party harmony see storm clouds
ahead. This much is assured-if the
German treaty is ratified by the aid
of Democratic votes, it will be long
time before the sore will be healed.
1t will split the party wide open and
| here is already talk of forming a Lib
eral party to be composed of pro-lea-
que Republicans and pro-league Dem
ocrats.
| AS for the controversy inside the
Republican party, it is fraught with
tmuch danger but the chances are il
p, will not do permanent injury. The
threatens to embarass the Harding
administration more than has been
apparent on the surface The true
Significance of Senator Smoot's ad.
vocacy of sales tax at the very
time when the Republican Leadership
of the House is sticking to the Older
methods of taxation is just becoming
clear
Senator Smoot is a staunch FRIEND
of Mr.. Harding. He isn't the kind te
throw monkey wrenches in the ma
ichinery of Republican progress. HI
wouldn't be championing a sales ta1
iif he didn't have encouragement,
from the White House. He has linec
up behind also about twenty one Re
publican Senators, most of whom ar,
well known as members of the innel
circle of the Administration. Post
master General Will Hays in a recen
tspeech at Cleveland said kind words
for the sales tax though he doubted
whether it could be applied at once
Broadly speaking there is more sym
pathy for the Smoot program than ii
3admitted at the White House. On,
explanation for the reluctance of Mr.
Harding to commit himself on tn,
subject is that from the first he fel
he ought to keep an open mind ant
J permit the situation to develop with
out executive suggestion. The sale.
tax has been variously pronounced a
politically dangerous and economical
ly unsound. The prejudice on the lat
ter ground is slowly being overcome
still insist that no sales tax can b.
devised which will not pass the bur
den on to the ultimate consumer il
which case the American peop1'
might show their resentment at tn
polls year hence.
The affinity for a sales tax anon
Administration Republicans proceed
J.. however from another set of circum
stances. The farmer-labor group
determined to see that the taxes o.
> transportation, especially freights
} are repealed at once. That knocks ou
about 100000 which will hav
r to be made up somewhere else. Thos
who want to see the excess profit
l taxes and the higher surtaxes repeal
ed are fearful lest the farmer-aabe
group insist that the deficit be mad
! CONTINUED On pags %