The Washington times., 1922-02-14
HAIR d \ 6
To THRESH
out BOND.
QUEST ION
Leaders in Congress AnxiousIy
Wait Decision Of
Executive.
By J., BART CAMPBELL,
Intesnatiensl News Service.


Intesnatisnsi News Service.
Republican leaders of Congress,
still at loggerheads over the way
the money for the soldiers bonus
should be raised, ere awaiting
with fnanifest anxiety the out
come of the meeting today Of the
President with his Cabinet. at
which the whole bonus situation
is being carefully considered.
Harding To Make Decision.
President Harding is expected to
announce after the meeting his de-
cision as TO whether, in his
judgment. the plan Of certain Re
publican Senators for the issuance
Of short-term Government securi-
ties ought to be substituted for the
eight-fold tax program recommend
ed by the House Ways and Means
Committee for financing the bonus.
Congressman Hamilton Fish of
New York, went to the White
House this morning as q commit
tee Of one representing the ex-
service men of the House to In
form the President that this group
WaS OpPoccu " tHC uiCSt taA1htoh
scheme to raise money for the
bonus, and that they favored q
bond issue.
Fish did not see the President,
but Communicated his views to
Secretary Christian.
A number OF Republican Senators,
including Smoot of Utah, are un-
derstood to have frankly informed
the President that they are con-
vinced that the eight tax proposals
would be rejected by the Senate
even though they were accepted by
the House.
Secretary Mellon is understood,
however, to be still opposed to q
bond issue to pay for the bonus on
the grounds that 1t would hamper
Treasury refunding operations. and
hurt the bond market.
On the other hand, Senator Smoot
IL not alone in the Senate in the be-
lief that a bond issue would offer
the most practical way out Of the
bonus muddle, IL Congress will not
accept a Shles tax. and would prove
far less unpopular than direct taxa
ton.
Favors FIye-Year Securities.
Smoot would have the Government
provide for the issuance OF five-yesr
securities, subject to call" any time
any part of the foreign debt might
become available, and bearing a rate
Of AZ per cent, at which he believed
they would find q ready market.
Smoot and several Of his Republi.
can colleagues are hopeful that the
President will view the situation as
they see II, despite MELONS opposi-
ton. They recall that the Senate re-
fused to agree with Mellon when he
asked that surtaxes be cut to the
lowest possible minimum when the
new revenue law was enacted; they
point to the foreign debt refunding
bill as a more recent instance of
where the Senate and Mellon were in
conflict. with the result that the Sen
ate had Its way in imposing restric-
tions on payments of principal and in
terest which Mellon did NOT want.
See Present Plan Scrapped.
Whatever the outcome of the pres.
ent situation, II Is the consensus OF
opinion among Senators that the
Ways and Means tax program Is as
good as scrapped. With the Repub-
lican majority I'm both Senate and
House committed to the passage of
the bonus bill, II In agreed that somo
other method of financing must be
found.
II there must be taxation, let .
sales tax be imposed, Smoot and
Edge Of New Jersey are demanding.
Unless n bond issue Is provided,
Smoot intends to offer q sales tax
as an amendment TO the bonus bill
when Il reaches the Senate. Presi.
dent Harding In known to favor q
sales tax, but q canvass Of the situa-