Evening journal., 1922-02-01
ro Members o. NatIonal FoundeT'

To Members OF National Founders
Association:
There appears TO he no doubt that
Congress will enact a soldier bonus
measure at the present session. 1t
seems clear also that cash bonus
will be provided for. Even though
otLer plans may be given in the bill,
no one expects that much attention
will be paid to them. There is diff
ference of opinion as to how much
money will be required to meet the
cash feature OF the bonus bill, but
estimates are that at least one bill
lion seven hundred fifty million VIII
be required and possibly several bill
lion dollars. Ii was first suggested
that the money to mort this pay
ment might be raised through the
interest on the foreign debt. pro-
tes. was raised however, on the
grounds that the method was un-
certain and that it would not be fair
to enact legislation providing for a
bonus with no certainty Of payment.
Great Britain has indicated that 1t
will begin payment OF this interest
al the rate Of two hundred and fifty
million dollars year. but even this
is not an absolute certainty as yet.
1t is obvious tkat IL Congress enacts
bonus bill. it must also provide
a method of taxation which will
raise the money. The method which
is under consideration is a sales tax,
and IL is highly probable that such
a plan will be included.
Here is situation OF the most
extreme Importance confronting the
country at the present time. Those
who advocate the sales tax appear
to forget T. at when the taxation bill
was before Congress every effort was
made to limit it TO the raising of
four billion dollars. that being as
much as the country could stand.
The sales tax was opposed for va
rious reasons. but now il may be APP
proved as an additional tax II we
could only stand the amount Of tax
alton provided in the general reve-
nue. bill. how are we TO stand an ad-
ditional tax. no matter how levied,
which will raise an additional two
billions of dollars7 The fact OF the
natter is that the counry cannot
stand the additional tax, which
would entail an additional burden
upon Industry and would delay the
return Of prosperity indefinitely. All
arguments to the contrary are po-
litcai sophistry. The question is an
economic one Of supreme impor-
tance. 1t is not one into which pol
itics should be injected. but which
should be considered from the point
Of view Of the financial and eco
nomic condition OF the United States
today VIII such consideration be
given?
There Is no use in beating about
the bush and plain speaking is necs
sary. w wonder II under present
financial and economic conditions
and az a time when the country Il
slowly struggling to get back to nor
NAL at time VIXEN taxes are op
pressive and restrictive, there woul'
have been so much insistence by po
iitical leaders on the payment o
this cash bonus II an election wer'
not impending The man in tn
street who knows something OF po
litical maneuverlng will tell you tina
the bonus bill is purely political. Tn
amount which each service man wi
receive will be inconsequential
will neither help kim materially no
promote the best interests Of IN
country. II will saddle on the coun
try an enormous additional burder
II will be resented by many right
thinking ex-service men. II will fal
into the hands of some who viii
use il for purposes not wholly help
ful The effect on the cost of liv
ing. for example. will mean tha
those who receive payments will b'
much worse Off eventually because
of these payments than they would
have been IL they had not received
them. But in political years, moth
ing counts but votes and clamor IL
always productive OF legislation
Legislation which is the result o
ciamor>is almost Invariably bad. lie
those who are now vociferously ad
vocaung the bonus bill as it is beinl
forced through Under the whiplasl
Of the American Legion, recall hov