The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-16
PRESIDENT
To
IN
CONGRESS
McFadden and Others Con-
tinue Fight to Use War
Debt Interest.
By A. o. HAYWARD,
International News Service.

ntcrnnronai news bervtce.
President Harding favors
the imposition of a sales
tax to pay a soldiers bonus.
The Administrators de-
cision was made known to
Congress in a letter ad-
dressed today to Senator
McCumber (Rep.) of North
Dakota, chairman Of the
Senate Finance Committee,
and Congressman Fordney
(Rep.) of Michigan, chair
man of the House Ways and
Means Committee.
Sales Tax or Nothing.
In his letter, the President told
Congress that If the sales tax could
not be enacted to finance cash pay
ments to veterans Of the world war,
the bonus bill should be postponed.
Urge War Loan Interest.
Congressman McFadden Rep),
Pennsylvania, and others continue
to press their arguments in favor Of
use Of interest and principal Of tho
foreign war loans. They were
checked by the Treasury objection
that such a plan would dislocate pro-
posed Treasury debt settlements.
A plan OF levying an excise tax
upon the privilege Of use and enjoy
ment of large land holdings based
upon their unimproved value, with
increased Inheritance taxes, was ad-
vanced in letters to President Hard
ing and Chairman Fordney, of the
House Ways and Means Committee.
by Congressman Oscar E. Keller
CRep), Minnesota. Each of these
plans has been rejected by the Ways
and Means Committee.
Insurance Is Urged.
Congressman Watson. Republican,
Pennsylvania, brought forward the
bold course of abandoning all
except llt
surance. He estimated the insur.
ance would cost for the first year
about $21 900 600, increasing annu-
ally, until the total cost at the end
Of twenty years would be in the
neighborhood of $4,000 900 900. His
suggestion received little support.
During the day House Republican
Leader Mondell was expected to
elaborate his suggestion that there
should be a further pairing of the
regular annual appropriation bills,
thereby effecting a saving of some
5000 900, 900. With the assistance
Of a few short term certificate Dor.
rowings by the Treasury this would
be sufficient to meet the bonus cash
payments, II was said.
The Mondell plan contemplates'
the slashing of funds for the ma
tional defense by army and navy.
Heads Of these two branches Of the
military establishment are assert
ing that present plans OF reduction
of appropriations threaten destruc-
tion of efficiency of both army and
navy. Little army and navy men
in the House are talking of cut
of 5000 .0O0. 900 for the navy and
$75 900 900, 900 to 100000, 900 for the
army.
kepubtiCan leaders IN congress
fear that II this sIashing Is carried
to an extreme there will be formed
I'm Congress a national defence"
group made up Of members Of the
powerful army and navy committees
Such a group would make IL hot for
the leaders and for those who seek
the demolition Of the army and navy.
Appropriation committeeman are
pointing out that the reduction In
army and navy expenditures during
the next year has been discounted
by them in framing appropriation
bills. Even with these reductions
Secretary Mellon has estimated a
deficiency during the coming ycsr
Of $500, 900, 900 because Of excess
expenditures over receipts. At the
srsssss sAsns the committee Is work