Evening star., 1922-03-18

In and others favorable to tho plan,
the report would declare against the
bank loan provision Of the adjusted
service certificate and in favor of the
original cash bonus provision. The
vocational training and home and
land aid titles did not meet with OBJ
lection in the conference called by
MIR. Kitchin.
Did Not Appear ON Floor.
The democratic leader, who has
been absent from Congress for near
did not appear on the floor. He went
direct to his office, where prominent
democrats were invited to meet him.
He remained at the Capitol for an
hour or more. but aside from those
who conferred with him few mem
bers Of the House knew that he was
in Washington.
Representative Frear's assault on
critics of the bonus bill was delivered
just before the House adjourned. Be-
sides Secretary Mellon and Controller
Crissinger. he attacked newspapers
Washington and other cities and
financiers of New York city generally.
He charged that the rich were under
taking to impose sales tax on the
people in connection with the bonus
and declared that in his judgment tbe
vision would be passed by the House
by an even larger proportionate vote
than the 10 to that it received IN
the ways and means committee
Mellon Letter Uninvited.
Mr.. Frear told the House that Sec
retary Mellon had written letter to
the ways and means committee con-
demning the compromise bonus bill
without being asked by any member
fo iS a de-
ter public before the committee re-
ceived it. He also declared that Con-
troller Crissinger had announced that
he would advise national banks not
to loan money on the adjusted service
certificates before he knew what the
bill contained.
Secretary Melons letter to Mr..
Frear was in reply to the one written
him last Monday by the Wisconsin
representative. Declaring that his po-
sition had been fully stated in let
ters sent the ways and means COM
mittee on January "a and March IL.
Mr.. Mellon said he had mot attempt
ed in them to argue the merits of the
soldiers bonus"
Responsibility In Congress.
whether or not there Is to be a
soldiers bonus" Mr.. Mellon wrote,
sis a question for which, as you say,
Congress will assume responsibility.
point out the necessity of meeting by
taxation the cost of whatever bonus
may be adopted and the dangers of
attempting to provide for bonus by
borrowing or makeshift measures. AS
1 think was made clear to the COM
mittee and the country. I have not
recommended any particular taxes.
though I have. at the request of the
committee, suggested several possible
sources of additional revenue that
would be available II Congress should
decide to grant a soldiers bonus.
Under Some Misapprehension.
are under some Misrepresentation also
as to the Treasury's position with re-
spect to a sales tax. The Treasury has
not recommended any general sales
tax. AS q matter Of fact, I am not in
favor of a general sales tax il 1t is
to be imposed in addition to all ex-
listing taxes, unless made necessary
by an emergency in the revenues. such
as would arise through adoption OF
the bonus measure.
Neither the payments which the
government has made in order to set
tie Cancelled war contracts nor the
so-called railroad funding bill to
which you refer present situations IN
any way analogous to the soldiers
bonus. In the first place, the govern
ment did not pay. as you suggest.
contracts but. on the contrary. settled
war contracts amounting to over
So, 700, 600, 900 at a total cost of about
$503. 100000 ,,
has never become law, and in any
event would not have appropriated
any money out of the Treasury.