Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-02-14
HOW FUNDS FOR
BONUS WILL Be
RAISED SUBJECT
Of CONF { ERENCE:
Harding and Mellon Are Be-
Iieyed to Have Discussed
the Matter at Farley At
the White House,
C0NGRESSMEM HAVE
BR0ACHED TWO PLANS
Position of the Adn1inistra-
tion Regarding Sources
of Revenue VIII Be Re-
VeaIed to Congress Today
my The AesocIated press.l

Washington. Feb, 13.-The posi-
tion Of the administration as to
how the funds for the soldiers
bonus should be raised may be
made known to congress tomorrow.
President Harding and Secretary
Mellon had conference today and
We're understood to have discussed
the question.
Two plans have been suggested
by members of congress charged
with the reporting of bonus leglsla-
ton. One by republican members
OF the house ways and means COM
mlttee contemplates special taxes,
while under the other, put forward
by Chairman McCumber and Sem
ator Smoot of Utah, ranking repub-
llcan on the finance committee.
snort time treasury notes or bonds
would be issued during the time
that the cash payments were made
TO the former service men.
Oppose Additional Taxes.
At the White House conference
today 1t was indicated in some adj
ministration quarters that the
treasury secretary held the same
views with regard to the issues of
notes or bonds that he expressed in
his recent letter to Chairman Ford
ney of the ways and means COM
mittee. On the other hand, con-
gressional leaders said opposition
TO the levyinG of additional taxes
at this time was increasing.
1t was understood that the tax
program drawn by the house sub
committee met with instant opposi-
tion when it was presented to ma
iority members Of the senate fin
ance committee. subcommittee
were named to thrash the matter
out and after a conference with
Secretary Weeks, they were under
stood to have presented the two
proposals to thes spresident.
While the president was consid-
ering the matter the sub-commit-
tees marked time today. Senator
McCumber said he expected to get
the presidents views tomorrow, but
added that he was not advised ms
to how it would be communicated.
Question Discussed.
The bonus question was discussed
today both in the senate and house.
Senator Borah. republican, Idaho,
brought up the subject in the SEN
ate, declaring that the demands for
a bonus for former service men
who were not impaired physically
or mentally as n result of their war
service might embarrass the gov
ernment in taking care of wounded
and disabled.
The Idaho senator declared that
SIS 600, 100000 was conservative
estimate of what it would cost the
government to care for all disabled
men before the governments obli-
cation to them would be discharg-
ed. He said that in his judgment
it would be matter of only ten
years before congress would be ap-
propriating a billion and half dol
lars annually for the necessities Of
disabled men.
Taxes on Wines and Beer.
The bonus was brought before
the house by Representative Mac
Gregor. republican. New York. who
urged that the fu- DIS for 1t be
raised by means of taxes on light
wines and beer.
Senator Edge, republican, New
Jersey, in a formal statement, de-
clared that while he had not yet
taken a final position on the bonus
legislation, ''if the billions neces-
sary to pay the proposed bonus are
to be raised through further taxa
tion upon business and industrial
enterprises, then ! am against It,,
and in my judgment we are simply
putting off just that much longer
a resumption of Industrial and
business activity necessary to les
sen presnt unemployment.
General Sales Tax.
"If congress would adopt as the
method of raising revenue" he
added, "a general sales tax so that
everybody, rich and poor, accord
ing to their expenditures. would
thus pay their proportion, and
equally as important the policy of
the sales tax would thus be placed
on the statute books so that it
could be used for obtaining neces-
sary governmental revenue in the
future and permit congress to cut
down the high surtaxes and busi-
ness taxes already paralyzing busi-
ness energy, there might be more
justification for passing the bonus
bill"