The Washington herald., 1922-02-14
Chiefs of Senate apd
House. at Standstill,
Await Word.
CABINET TO CONFER
WITH PRESIDENT
Bond Proposal Gets New
Z Impetus; Borah Be-
b.. gins Attack.

| Wnat Will pe done with the SOL
der bonus bill. bugaboo Of Con-
gress. depends on the decision of
President Harding.
Leaders in both Senate and House,
unable to agree on a satisfactory
means for raising the revenue
needed to pay the bonus, have re-
ferred the whole question To Hard
ing. and are awaiting word from
him before proceeding with the
bill ,--i..'
THIS wcrd is expected tSday s
The Preside TT. some thought,
would subscribe to the scheme for
raising the money through the
fotation Of bonds. This apparently.
Is the only alternative for the taxes
recommended by the House Ways
and Means Committee, which caused
such a furore OF opposition that
they were hastily discarded.
Bond Issue Urged.
A bond issue was recommended
to the President by Senator Nc
Cumber. chairman OF the Finance
Committee; Senator Smoot, member
of that committee. and Representa-
tive Fordney, chairman Of the
House Ways and Means Committee.
and Representative Longworth.
committee member.
An issue of s125.00o.o0o would be
Immediately necessary. 1t was
| thought, to meet the initial bonus
payment. Subsequent issues could
be made as they were required.
Meantime. payments from Great
Britain on the money owed this gov
ernment would be expected. and II
forthcoming. would be utilized for
subsequent bonus payments.
Mellon II Opposed.
1t Is figured that between $780,
100000 and s4oo.00o.o0o would be
required during the first year the
bonus Is in operation. w... n
President Harding previously has
| expressed himself as opposed 10
bond issues, and some believed he
would not change. Secretary OF
the Treasury Mellon has warned
against them in strongest terms.
But leaders in Congress thought
the President would regard bonds
as a lesser evil than the taxes pro-
| posed. Seldom in the history OF
Congress has opposition to any
measure made itself felt so quickly
and effectively as that which de-
veIoped when it became known new
taxes were contemplated.
| Alternative Ii offered.
The President. of course. could
repudiate the entire bonus proposal,
and there was a belief in some
quarters that he might do this.
But Senator McCumber does not
believe he will. The Republicans
in Senator McCumber's view. are
bound morally to go through with
the bonus bill. apd he believes this
will be done. The fotation OF
bonds, the Senator thinks. can be
accomplished without financial dis
turbance. or other difficulties. Mr..
Longworth likewise believes that
the bill will pass. and that the
funds win come from bonds.
| Passage of the bill without pro-
vision for raising the revenue has
received little support in either leg
islative or administrative quarters
An effort might be made to do this
and depend on. economies to supply
the funds, with which the bonus
payments could be made.
Rorah Launches Attack.
The entire question will be put
before the Cabinet by President
Harding today and an effort made
to reach a solution. Afterwards,
Congressional leaders will be told
what the President has decided.
Senator Borah, of Idaho, launched
a bitter attack on the bonus bill, in
the Senate yesterday. denouncing
vigorously the proposal to impose
additional taxes.
| The country, Senator Borah de-
clared. Is no more able to produce
revenues for a bonus than 1t was
last July, when the President asked
that the bill be sidetrackel. There
has been o-improvement since then
in agriculture, business, or indus
try, Senator Borah declared, and
large sums paid out as a bonus
would simply retard still further
the nations economic recovery.
Warns of Danger.
| Further. he thought that the
money could better be utilized in
caring for the disabled veterans,
who now. he said, are neglected.
Within the next ten years, Borah
predicted, the country will be ap-
propriating $1,500, 100000 annusaly
for this purpose. and eventually will
have to appropriate a total of $75,-
900. .000, 900.
"The taxpayers of this country
are bearing about al the burdens
they can" said Senator -Borah. land
what is more. I suggest their pa
tience Is becoming exhausted. 1t is
a dangerous situation when the pa
thence of a people with their govern
ment is exhausted. =.
These young men who came back
from the war unimpaired in mind
and body cannot recover financially
until the country does. A. bonus
would be pittance to them, but II
would retard the country's recoy-
cry" y
The Senator prophesied that even
tually Congress would pass the bill
with no provision for raising the
revenue required. This possibility
he sharply criticised.
In debate with Senator Jones'; Of
New Mexico. Mr.. Borah insisted that
the bonus should be described as a
"gratuity." A price cannot be put
on. the services Of the soldiers, he
argued, and they no more merit re-
ward than do thpse who stayed at
bone and sacrificed to help win, the
war.