Evening star., 1922-02-22
EXPECT: DEFINITE
ACTION ON BONUS
Decision on Details Looked
for at Today's Meeting of
House Republicans.

Definite decision on details Of the
so-called soldiers bonus bill is going
to be reached today by the seven
republican members of the ways and
| means committee who have been
| wrestling with the problem. Chairman
| Fordney said, after the republican
members had been told in executive
session by Secretary Mellon yester-
day that the sales tax is the best way
to raise funds for the bonus.
Secretary Mellon is understood to
have taken substantially the same
position that he did at the open
hearings two weeks ago. when he
reiterated his opposition to a bonus at
this time. but declared that II such
be financed by sales or some other
form of taxation.
Opposes ShOrt-Term Notes.
Asked what the Treasury would do
If Congress passed a bonus bill as a
general charge against the Treasury.
Mr.. Mellon was said to have replied
that the amount would be paid by
issuing short-term certificates. He
opposed this form Of financing. how
ever. on the ground that 1t might af-
feet the interest rates on the refund
ing Of certificates due in 1928. Some
members of the committee quoted
the Secretary as saying in substance
that as between a sales tax or bond
issue for the bonus he would recon-
mend the former.
Members of the subcommittee would
not anticipate committee action, but
the general belief at the Capitol con-
tinued to be that some form of sales
or manufacturers tax would be rec
ommended. It was pointed out in
some quarters that with President
Harding opposed to both the original
tax program suggested and to the
rowed to sales tax or the drafting
Of measure that would be general
charge on the Treasury.
This last plan is supported by some
republican leaders Of the House and
also by those who are leading the
sentative Frear of Wisconsin declared
in a formal statement that he be-
lieved he spoke the sentiment of
"a hundred republican members of
thee House to the effect that sales
tax will be opposed, or any rule seek
explained that his announcement was
based on the fact that seventy re-
publicans had signed a petition
against any sales tax and that many
others would sign.
Favor Bonus Bill.
Nearly all Of these 100 members
are In favor Of a bonus BILL" said
Mr.. Frear, land in favor of having it
passed the same as the bill was re-
ported to the Senate, leaving the
Treasury to finance any Immediate
demands. estimated at approximately
$5O0.000,000 during the coming year,
by the issuance of certificates which
will be covered by the foreign loans
This does not take into consideration
any economies that may be put into
force.O
Urging adoption of a sales tax SINH
lar to that in force in Canada, Repre-
sentative Volk of Missouri sent an
open letter to Chairman Fordney ask
ing that the subcommittee hear him
on the question.
He said. that If opportunity we're
given for an explanation Of how the
Canadian law would work in this
country, it was his judgment that the
subcommittee would favorably In
dorse this plan of raising bonus reye-
nue..
ut seems most unfortunate" he
added, that SO many conscientious
and well-meaning members of the
House, through lacking understanding
of this most beneficial legislation,
will rush to put half baked ideas into
print and circularize members of the
House with misinformation and mis-
leading statements"