Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-24
TREASURY HEAD
OPPOSES BOND
PLAN FOR BONUS
Mellon Wishes FOrdney Pro
grams Supplanted by
Other Means.
CONFLICT IN VIEWS
Special to Indiana Daily Times
and Philadelphia Public Ledger.

Special to Indiana Daily Times
and Philadelphia Public Ledger.
WASHINGTON, Jan. 24-Secretary
Mellon still is opposed strongly to any
plan for raising a soldier bonus" which
is predicated on sale of foreign govern
ment bonds to American citizens. The
Treasury Departments continued obJec-
ton to such q program as was outlined
Saturday by Representative Fordney,
chairman Of the Ways and Means Com
mittee, has been disclosed through Off
ciaI channels. Secretary Mellon was rep
resented as believing Congress should de-
wise other methods than bond sales to
raise the promised bonus" although he
was said to hold to the opinion the
country is in no better condition eco
nomicaIy to provide q bonus" now than
it was last summer.
The plan Of Chairman Fordney, rec
ognzed as the Administration financial
spokesman In the House, which he an
nounced he woul dintroduce as soon as
the foreign debt refunding bill has passed
the Senate, provides that the money
be raised through the sale Of those for
eign bonds, reissued securities for our
S11 600 100000 war loans to our allies,
to the American public In order TO make
the bonds salable, the FOrdney plan
would have them underwritten by the
United States Government, which would
guarantee payment Of principal and in
terest, none Of which has been forth
coming from abroad t. date.
APPREHENSION OVER
APPROVAL STATEMENT.
Chairman Fordney's subsequent state
ment that the President had approved his
plan excited grave apprehension IN other
Administration circles. Leaders recalled
Secretary Mellon had been vigorously
outspoken in his opposition to the
bonus" plans based on sales Of ponds.
There was 8 suggestion in some quarters
the Secretary Of the Treasury might feel
called upon to resign as the Presidents
chief financial adviser, If the Fordney
program passed.
Men close to Mr.. Mellon laughed at
that intimation. Notwithstanding officials
insisted the Secretary still is opposed
to any bond sale to raise the bonus"
whether the bonds were those Of foreign
governments or new issue Of American
securities. They pointed cut he often
had expressed the opinion such a pro-
gram would increase the war burden
Of the taxpayers, gravely complicate the
operation Of refunding our foreign loans
and would have bad effect on the Lib
erty Bond market Others pointed out
he also has indicated his belief such
procedure would be little more han cam
outage, as the program would mean moth
ing more than a new issue Of American
bonds and another intensive campaign
to sell them, Just as the Government
would be called on to float new issues
Of present debts.
EXPERTS READY
WITH PLANS.
While the Treasury has not been called
upon to suggest any means OF raising
bonus" revenue Il IS understood ex-
perts are prepared to make proposals on
short notice and that the ideas Of last
summer probably would be included for
Congressional consideration.
One Of those proposals was for an In
/ creased postage Of 1 cent on frst-class
mail. Another was for q Scent gasoline
tax which It was estimated would yield
in the neighborhood Of $4,000 600. sim
another regarded less favorably on Cant
toll Hill was for a stamp tax on bank
checks. Experts computed a possible
revenue Of from S45.G00O00 up TO 500
100000 or COCO coo without undue bur
den, from that plan. It's opponents how
ever, feared it might have the effect Of
keeping money out of small banking In
stituti0ns in the South and Middle West.
where those banks need every possible
support.
Men who have approached Secretary
Mellon with the sales tax plan say he
was noncommitral rs to It's possible APP
plication to a bonus"
It is learned Secretary Mellon has re
ceived literally thousands Of letters since
the idea emanated from the Treasury De
partment a bonus might be paid from
n tax on light wines ana beer to be sold
under Z liberalized Volstead act It was
said solid majority Of the communi-
cations favored the plan, which Secretary
Mellon has said he would not recommend
but would not oppose either. Officials
said many Of the other letters opposing
the idea were sent by clergymen and
others prominently identified with the
prohibition mOvement.-CoDyright 1922
by public Ledger Company.