Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-05-07
MODIFIED HOUSE
BONUS PLAN PUT
UP TO HARDING
BY REPUBLICAN,
President Tells Senate Lead
ers He viii Study the
Proposal; Asks Concern
ing BiII's Provisions, -
ADDITIONAL TAXES 3:
ARE NOT DESlRP &
Legislation Can Be Fi9 s cd
Out of the Refunfo$ fit
ish Bonds c - Put
Sales Tax Th'

! Washington, May 6.-President
Harding took under advisement to-
day the modified house soldiers
| bonus plan presented to him by
a committee of senate republican
! leaders. He told the senators that
he would study the proposal and
! the one to be presented early next
week by Senator Smoot of Utah,
ranking republican on the senate
finance committee, and would re-
new the discussion with them later.
Those calling at the White
| House were Senator Lodge, Massa-
chusetts, the republican leader,
Chairman McCumber and Senators
Curtis of Kansas and Watson of
Indiana, members of the finance
committee. The senators said the
president had given no intimation
as to his opinion of the amended
house bill but asked many ques-
tions concerning its provisions.
The president was told, senators
said, that it was the desire of con-
sressional leaders that no addi-
tional taxes be enacted in connec-
tion with the bonus and that it
would be impossible to put a sales
tax through congress. While no
specific plan of financing the
J bonus was presented to the eXecu-
tive, IT is the thousht of bonus ad-
vocates that the legislation can be
! financed out of the refunded Bit
| ish bonds.
The president was asked by his
callers whether there was likeli-
hood Of the treasury receiving the
refunded British bonds sooner
than heretofore anticipated. He
was quoted as replying merely
that the refunding negotiations
are in progress.
Neither the commonly known
McCumbor plan nor the Smoot
plan calls for any considerable
outlay OF money within the next
few years, and some senators said
that whatever cost would be en-
tailed could be taken care OF out
of the $500, ,000,o00 annual interest
on the debt owed by Great Britain
which that country is expected to
begin paying this year.
McCumbcr Plan.
Tho McCumbcr plan. like the
house bill, would call for no loans
to veterans by the government for
period of three years but banks
would be authorized to advance to
the soldiers sums equivalent to
one-half of the adjusted service
credit of the veterans At the eX
piration of the three years the
treasury would make loans direct
to the men.
fThe Smoot plan contemplates the
issue of twenty year life insurance
endowment policies to the veterans
in lieu of all other options hereto
fore proposed, including the voca-
tional training, home and farm aid
and land settlement. and it would
make no specific provision for
loans ON the policies.
The policies would have a face
value equivalent to slightly more
than three times the amount of the
adjusted service credit of the vet
Grams and the face value would bel
paid at the end of twenty years orl
sooner upon the death Of the vet
eran.
May Call Conference.
After the senators returned tol
the capitol from the White House
there was a dicussion among lead
ers generally as to whether the
bonus should displace the tariff
bill. There was some talk about
calling a party conference to decide
this question but no formal deci--
sion was reached. This may await
the presidents decision as to the
kind of bonus bill he will approve.