The Dawson news. (Dawson, Ga.) 1889-current, 1922-02-14
R0NUS FIGHT IS ON
At NATIONAL CAPITAL
ooNcPESSMEN FIND THEM
orrvEs BETWEEN THE FRY
ING PAN AND FIRE.
THEY WILL LOSE BOTH WAYS
Members Favor Bonus Because It
Means Votes, but Fear to Impose
Additional Taxation or Authorize
Meu, BOND Issue. Dread Battle. /,

Additional Taxation or Authorlze
New Bond Issue. Dread Battle.
The framing OF soldier bonus big
g.. .,w the immediate work OF the
,..se WAYS and means committee, the
-.o,,b,ican caucus of the lower body
- congress having determined to push
.t~ouqh this legislation before the
FsstcT recess if it is possible to DO SO.
l. ;s held virtually certain IN Wash
acton that a bonus bill OF some KIND
M mass the lower house OF congress,
brt here appear to be rocks ahead
~ IN the senate, especially since the
l,'h;to house. the treasury department,
. %'i' virtually all the big financial in
ot;t,,t;ons are lined up in opposition
beranse the passage OF such law at
.L;s time means either the biggest
, ,,,s deficit in the history OF the
conntry, or an increase OF already bur
densome taxes that may mean an addl-
t;o,a1 billion or billion and a halt
dollars year
Battle to Be Hard Fought.
The battle for and against the SOL
diers' bonus in the national legislative
bgIIs Is going to be one of the most
b;tterIv fought in years. AS it now ap-
oears the plight of the former service
men will play little part in the debate.
Fvervbody is for them, OF course.
There are 10000 former service men
voting in the average congressional
district, more than $4,000 OF them in
oopulous districts. Every representa-
1--we and senator wants to win the ia
yor of these soldiers.
The difficulty lies in extracting some
g 000 600 600 or more from the public
treasury by such a process OF circum--
Iocution that the already hard-pressed
+axDavers won't miss it. For it must
he said the members of congress are
for the taxpayers also. The bloc OF
taxpaver voters even exceeds numer1-
caUy the bloc of soldier voters. The
difficulty lies in the fact that the mem
hers OF congress need the support OF
both OF these groups.
To Cover Many Fields.
Hence it is that the argument over
the bonus must wander far aheld. In
its course the world war will be fought
over again; it will involve the ditt1cultt
issue of the economic restoration OF
Europe and the payment OF the foreign
debt agriculture will be arrayed
against manufacturing and trade; the
east will be assailed by the south and
the west. and vice versa. The struggle
between the democratic and republ1-
can parties, evidenced with respect OF
every issue in a campaign year, Will
be only one of the many divisions
which this measure will create.
Minority members in congress are
iubilant over the republican pickle,
as they express it, for the democrats
feel certain that whichever way the
majority party acts. it means votes tor
the democrats at the next election.
Meanwhile the republicans, while eX-
pressing their determination to care
for the American soldiers OF the world
war, are strangely silent as to where
the money is coming from. There was
a great deal of talk few months ago
OF using the interest on the SlO,0O0,-
100000 war debt Europe owes the
United States to meet the bonus, but
there is not single person in Wash
ingtOn today who does not know that
interest payments from Europe on
American loans are still very, very lar
in the future.
The Frying Pan or the Fire.
Soldier bonus payments now mean
either additional taxes or a bond issue,
and both of these are decidedly tick
lish subjects, politically. The mere
threat Of another government bond IS
sue to meet the soldier bonus has de
pressed the value of Liberty bonds
and Victory notes from $3.50 to SIS a
hundred in the last ten days, and al
ready the wall has gone up from the
million holders of these securities. On
the other hand, additional taxation, no
matter what form it may take, is GER
tam to be highly unpopular and Jeop-
ardlze the political power OF the party
which enacts such measures.
The best estimates available to the
treasury department of the cost of the
bonus is approximately $3,350,000,000
OF which at least $S50,000,000 would
tall IN the first two years of its opera
ton, with varying amounts in the IN
teryenlng years and an ultimate pay
ment OF more than $2,114,000,00O in
the twentieth year
Treasury Departments Position.
Secretary of the Treasury Mellon
has virtually confirmed the fact that
no money can be expected immediate
iy either on interest or principal from
the allies, and he insists that if any
does come from abroad it must &c
by law TO pay the existing liberty
bond holders. So the S85O,000,000 for
the next two years would have to be
raised by direct taxation or the gov
eminent would face a deficit of more
than billion dollars a year for the
next two years.
ne treasury department htinks bus
mess has been taxed too much for its
cWn good and that sales tax impos-
ca as an addition to existing taxes
would only be passed on to the con-
9,TI,iner and increase the cost of living
me sales tax itself is gaining more
friends in the treasury, but only as &
substitute tor the present income tax
Is and not as an additional burden