The New York herald., 1922-02-16
Bonus Reserves Appear.

Bonus Reserves Appear.
The bonus propagandists whose
ranks were greatly augmented by re
serves from every section Of the coun'
try trained vigilant eyes on their
Sroggy supporters. The opposition tC
the bonus scheme, while physically
less visible, was even more impressive
than the verbal arguments advanced
by the proponents of the raiding
party.
These protests continued 10 fall in
thick and increasing clouds from the
telegraph wires and mail trains. The
effect of the most astounding reaction
from any recent legislative proposal
was pronounced and unmistakabe. II
convinced the members Of Congress
wto had unwisely pledged their sup
port TO unavoidable bonus plans that
the dominant sentiment of the coun-
try generally is opposed to it.
One of the most striking results of
this reaction reflected a break in the
hitherto solid phalanX of the bonus
supporters in the two houses. 1t was
in the shape of a suggestion that a
new bonus plan providing gratuities
only for the men who actually served
abroad should be taken up and passed.
Argue for New Plan.
The arguments in ravor of this pro-
posal were G) that not more than
$780, 900 would be Immediately re-
quired to pay the bill; (2) that the
service men who remained in COM
Portable barracks and camps at home
would be satisfied with this solution,
and (3) that the Government could
provide the money to pay the bill by
scaling down appropriations for the
army the navy and other depart
mental budgets.
The proposal which came from ter
rified Congressman who sensed the
probable failure of all bonus legisla-
ton was rejected out of hand by the
professional bonus propagandists en-
trusted with the task of keeping Con-
gress in line"
Another plan that Leader Mondell
pf the lower house viewed with favor
was TO pass a bonus bill and leave ii
hp to the Appropriations commit
tees of the two Houses to lop off
enough of the army and navy budgets
10 provide for the first payment OF
She bonus gratuities. This scheme was
Seized on by Senators and Representa-
rives of pronounced pacificist tenden-
&ies and the small army and navy
Hnen.
But the reaction in Congress gen.
Ierally and certainly in Government
circles was decidedly antagonistic. The
Suggestion to cripple the two branches
.of the armed service evoked a roar of
protest that effectively submerged the
advocates of it. 1t was pointed out
that the Navy Department faces a
probable deficit of more than $780,
D00 900 during the coming year if it is
to be kept up to a desirable standard
of efficiency, and that the appropria-
nion of the army can only be made to
hold out by the most rigid economy
as it is.
suggestions Already Scrnpped.
The two plans therefore were COM
mitted to the scrap heap along with
previous suggestions for financing the
; bonus scheme. These were:
1. Legalizing of a heavy tax on
wine and beer-opposed by the Anti
Saloon League.
2. The use of the interest on the
foreign debt-declared by Secretary
Mellon to be impracticable.
3. The enactment of bilRimpos-
ing a sales tax on all merchandise
opposed by the farm bloc and unor-
ganized agricultural elements.
A. The passage of an eight point"
tax bill adding additional levies on
letters, automobiles, amusements,
gasoline, bank checks, legal instru-
ments and tobacco-protested against
by beople in every line of business
in all sections of the country.
5. The authorization of heavy
bond issue which would throw into
the market additional Government
obligations--declared by President
Harding and Secretary Mellon to be
undesirable because of the certain
disastrous effect on business.
8. The passage of bill restoring
the excess and surtax taxes of the
war time period-opposed by officials
of the Government and business men
of all kinds.
Z. The sale of battleships and naval
craft to be scrapped under the dis
armament treaties-declared imprac-
ticable for the season that such dis
position would violate the spirit of
the international agreements
8. The proposal to reissue Federal
Reserve notes which have been can
celed to conform to the defation
policy of the Government-opp
by bankers and business men gen.
orally.
.. The proposal to authorize the
issue of minimum of 1000, 900 900
in currency as Government obliga-
ton without basis security-pro-
nounced foolish" and condemned as
a Soviet proposition"
10. The proposal to adopt the
bonus plan and instruct the APP
preparations committees of the two
houses of Congress to devise means
for raising the money to be needed
opposed by the majority of members
of Congress and all of the executive
officials of the Government.
Try to Revive Plans.
All these projects have been thrown
into the discard, but many Senator:
and Representatives began revivinl
soms of them to-day regardless of the
judgment of the President, Secretary
Mellon and the thousands of business