The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-19
CONGRESS To FIGHT.
FOR VETERAN BONUS.
Advocates to Attack Harding
Legislative Program If Bill
Is Delayed.
OPPOSITION 70 SALES TAX
Democrats In Senate Report
ed as Solid Against Plan
Of Levy.
OPPOSITION 70 SALES TAX
By A. o. HAYWARD
IntSruafiapaI Nex~. S.rvi..

international News Service.
The problem Of providing cash
compensation for veterans of the
World War must be settled to the
satisfaction Of bonus advocates in
Congress or the Administration
entire legislative program will be
endangered, it became evident last
night.
The recommendation to be made
by President Harding for a $780,
000, ,o000-a-year ship subsidy to
sustain the American merchant
marine and the demands of the
War and Navy Departments for
funds for the maintenance of the
military and naval establishments
are 10 ibe brought under fire from
members Of the Agricultural
bloc" and veterans bloc" unless
the demands of these legislators
for q bonus are granted.
Conferences among the ex-service
members and their supporters, held
yesterday, developed the fact they
had come to the decision that until
money could be found for the bonus
they were unwilling to vote money
TO other Government purposes ex-
cept to meet barest necessities.
With this understanding. they are
prepared to vote for the smallest
army and navy. and to resist the
ship subsidy and permit the mer-
chant marine to limp along as IL
has been doing the past year. Other
Administration measures may be put
under the ban of the ex-service men
and bonus advocates unless the
House Ways and Means Committee
Is successful in finding a way to pay
the bonus.
While no formal steps were taken
yesterday by those working on the
bonus legislation to solve the money
problem, there was a general mill.
ing around among House and Sen
ate members and unofficial discus
sion Of the pressing question.
Plan for Certificates.
Chairman Fordney, Of the Ways
and Means Committee, received from
Roy Fitzgerald, Rep)
Of Ohio, a suggestion that short term
treasury certificates for the amount
OF the cash bonus be issued to the
soldier BENEFICIARY instead Of cash
from the Treasury.
This certificate could be sold by
the beneficiary II he stood in need
Of the cash or retained by him until
when it could be redeemed
by the Government. This plan,
Fitzgerald held, would afford the
time to consider ways
Of raising funds either through taxes
or from interest payments on foreign
loans.
House Republican leaders were
warned that considerable opposition
to the sales tax being used to pay
for the bonus was developing among
a number OF Republican Senators.
who were prepared to Join with their
Democratic colleagues in waging a
finish fight against the adoption Of
such a tax under any circumstances
1t was declared that the solid
vote Of thirty.six Democratic sena.
tors would be cast against the sales
tax IL 1t reaches the Senate as part
OF the House bonus bill.
Republican senators like Capper,
OF Kansas, and McNary, OF Oregon.
who are leaders OF the Senate Agri-
cultural bloc. declared that they
were unalterably opposed to a sales
tax, and that rather than accept
one, they were strongly inclined to
vote against any bonus measure
which may contain a provision for
one.
'In my Judgement. a sales tax
will never get through the Senate
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