The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-03-21
HARDING FIRM
ON SALES TAX
BONUS METHOD
Republican Leaders Simply
Desire to Get Bill Passed
Now in Order to Fulfill
Promise.
OTHER CONTROVERSIES
By MARK SULLIVAN

WASHINGTON, March 21.-If SYM
controversy with some of the Repub-
lican leaders of congress in the bonus
controversy, there is good reason
for it,
The other leaders charge Harding
with being vague in his position; but
they are enabled to make that charge
hy the fact that Harding takes more
factors into account than they do
To the Republican leaders in con-
gress the bonus question is the simple
ne of passing it now, so as to have
the effect of fulfilling promises made
by many of them and to create that
Impression in advance of the coming
elections
Harding's position is that he is forI
he bonus. but only for such a bonus
as will liquidate the obligation to the
soldiers. not piece-meal and not by de-
ferred obligations, but in cash, so
as to get the matter out of the way
permanently.
Considers Treasury
When ii comes to paying in cash
Harding takes into account the state
of the treasury, and does not counten-
ance any bonus bill unless it carries
method of raising the money by a
new form of taxation, in addition to
The forms already in use. BY this
President Harding means a sales tax
II is on this point that the real con-
troversy arises.
The same Republican leaders in con-
gress who favor the bonus are in most
arc also favorable to a sales tax.
Chairman Fordney of the ways and
means committee was one of the orig
inal proponents of the sales tax, and
has been outspoken in favor of it for
more than two years past. But the
point lies in the fact that these Re
publican leaders in the house have
not sufficient control over their party
to pass the sales tax.
1t is this inability of the Republi-
can leaders in congress to make good
in passing the only form of taxation
which Harding regards as available
for supplying the bonus money that
rases also favorable2 to sales tax.
White House and congress.
Differ on Army Bill
Harding gives the impression Of
having been refreshed by the rest,
which everybody familiar with the
burden on him knew, he needed. The
bonus is only one of many difficult
matters Immediately ahead of him.
With regard to the army appropria-
tons. the house shows a determina-
ton not merely to differ with Hard
ing and his secretary of war on the
size of the army; they go further and
are trying to say how the army shall
be disposed.
The size of the army is clearly with
in the constitutional perogative of
congress, but where it shall be sta
toned is a part OF the presidents pre-
rogative as commander in chief.
Congress wants TO prevent Harding
from using any money for maintain
ing troops in Europe beyond the num-
Der of 500, or in Panama beyond 5000,
or in Hawaii beyond 5000
Another Issue
Another issue Immediately ahead of
Harding, and containing possibilities
IF much trouble. is the difference be
tween Secretary Fall, of the interior
department, and secretary Wallace, of
the department of agriculture, over
the proposed transfer of the forest
service. Secretary Wallace has it now
and Secretary Fall wants it. Also,
Walter T. Brown. who on behalf of
Harding, has laid out a new re-
arrangement of government bureaus,
las recommended this change among
others.
The whole matter of government
reorganization has been on Harding S
desk for several weeks and is held up
by this and other controversies.
great deal could be said and will be
said about this forestry issue. 1t is
merely mentioned here as one in a
formidable list of trying subjects i'm.
mediately ahead of the president.
= other Subjects
Other subjects in this list are in a
difference with Congress on the size
of the navy similar TO the one on the
size of the army; the decision OF
whether to send an observer to the
Genoa conference; the arising on a
new phase of our relations with Mexi
co; the threatened coal strike; the
need of coming to some decision about
the long-delayed tariff. which is now
suspended in the air between house
and senate; the ship subsidy policy:
the Muscle Shoals contract, and a host
Of others. Many of these questions
are grouped within the broad field
in which decision is needed most OF
ALL namely. who is to be responsible
for the actions and policies of the Re
publican party, whether Harding OF
the leaders in congress.
For two things Harding has reason
10 have feeling of relief One is The
fact that the treaties arising out O
the Washington conference are sure
10 be ratified That will mark III,
completion of Harding's greatest wori
in the field of foreign affairs.
Work of General Dawes.
The other is General Dawes Gen
eral Dawes will come in June to tht
end of year in which he has actet
as the right arm of the president, AM
by his prodigal outpouring of shee
vitality and personality has put int
effect with success what probably 1
the greatest single achievement o
the Harding administration in domCs
tic matters: Namely, the initiation o
NJ a budget system on sound and pei
manent basis.
On the rare occasions when tn