The New York herald., 1922-07-24
|DONUS RAIDERS SEE
| THEIR PLAN in PERIL.
Cry for La Toilette to Come
Back and Save the Bad
Situation.
HARDING is ADAMANT
His Attitude Now the Same
as When He Wrote to
Mr.. Fordney.
HITCHCOCK OPPOSES LOAN
Shows Wherein That Feature
of Present Bill Will Be Too
Expensive.
Special Dispatch to THE New YORK HEzALp.
New York Herald Bureau.

brought squarely before the Senate
this week by a move to postpone the
bill indefinitely, in keeping with the
wishes of President Harding, bonus
advocates are much excited and an
urgent call has been sent to Senator
La Toilette (Wis.) to return to the
capital at once.
An appeal was sent first to Senator
La Toilette few days ago when the
clouds on the bonus horizon began to
thicken. and 1t has been repeated. He
is scheduled to arrive here early this
J week.
Just what steps will be taken by
Senator La Toilette to try to save the
situation are problematic. Bonus ad-
vocates arc keeping their own counsel
these gloomy days, although they
make no secret of the fact there Is
much gurnshoeing going on within
and without the Senate on the subject.
An unbiased Senator in analyzing the
situation predicted that Senator La
Toilette would move within few days
to lay aside the tariff bill in order
to dispose Of the bonus measure.
Should Senator La Toilette make a
motion to force the bonus issue he will
be supported by several Senator's on
both sides OF the chamber, although II
IL a question whether he could obtain
the necessary majority. In the likely
event that his plan is repudiated then
| the probabilities are that Senator Lodge
(Mass.) or some other Republican leader
will move to postpone the bonus legis-
lation indefinitely.
Harding stands Firm.
That motion. 1t is believed. would be
indorsed by a majority vote of the
Senate in view of the unalterable posi-
tion taken by President Harding
against the McCumber bill. Since the
latest pronouncement on the subject
given by the President to number
of business men there Is no longer any
lingering hope entertained by bonus
Senators that the President will change
his views and sign the McCumber bill
should it be passed by the Senate.
To see whether the President has been
consistent in his opposition to the pend
ing bonus bill some of the bonus Sena-
| tors have checked up on his comments
and they find he has not chang6 one
iota on the subject. They recalled that
when the House Ways and Means Com
mittee was preparing bonus bill they
called on the President to outline his
views and he then wrote to Chairman
| Fordney:
| that any compensation legislation en-
acted at this time ought to carry with
1t provisions for raising the needed
revenue.
'Tnasmuch as the Treasury is to be
called upon to meet more than $6,000.-
o00, 900 of maturing obligations In the
sixteen months Immediately before us
| 1t Is not possible to recommend the
issue of several hundred millions Of
short term notes. Further excessive
borrowing would likely undo all that
has been accomplished in readJusting
interest rates and stabilizing the hnan-
cial world. both vitality essential to the
resumption of Industrial and CONNER
cial activities.
The sales Tax.
i
II believe the American people will
accept the levy OF general sales tax
to meet the proposed bonus payments
and we should contribute thereby no
added difficulties to the problem Of re-
adjustment II Congress will not adopt
such a plan II would be wise to let the
legislation go over till there Is a situa-
| tion which would justify the large out
| lay. / take 1t that the ex-service men
! themselves are no less concerned than
others about the restoration OF business
and the return to abundant employ
ment."
! Repeatedly the President has stated
that his position on the bonus has not
changed since he wrote that letter to
Chairman Fordney. although some bonus
advocates have gone ahead with their
plans. hoping the President would yield.
| Now that the Republican leaders are
convinced the bonus bill can never be
| enacted into law this session they are
anxious to get IL Off the Senate calendar
as 1t would go far toward relieving the
legislative jam.
Practically every Democratic Senator
In favor Of a bonus is opposed to the
McCumber bill, so that should the meas
ure come before the Senate It will be
bombarded from all sides and crushed
| ny dt0sHufntHtS.
Senator Hitchcock (Neb.), strong
bonus advocate Is bitterly opposed TO
the loan provision in the McCumber
bill He has compiled a table showing
that should an ex-service man negotiate
loan on f1is-certificate for $500 at a
bank and hypothecate his certificate as
security. when II is redeemed by the
Government it will cost $1,000.
The Nebraska Senator points out that
while under the plar the Government
will be forced to pay from to s per
cent. interest on the loan the Treasury
can only realize a much. lower rate of
interest on its loans. He thinks a plan
should be worked out by which the Gov
ernmeat would not be obliged to pay
such an exorbitant rate OF interest on
loans made on the certificates which are
| forfeited.
should the McCumber bill come be-
fore the Senate the Nebraska Senator
will have an important amendment to
offer to the loan provision to remedy
the defect mentioned.
| Opponents OF the bonus throughout
the country. while encouraged over the
present situation. are keeping a weather
eye on the Capitol. Senator'S continue
| 10 receive many letters and kilograms