The evening world., 1922-04-19
DEFICIT OF BILLION
SEEN WITH BONUS;
PRESIDENT UNEASY
Worst Finance Jam Since War
May Compel Harding to
Address Congress.
BY David Lawrence.
Especial Correspondent Of The Eve
nina Worldly

ny DdVlu Lawrence.
Especial Correspondent Of The Eve
ming Worldly
WASHINGTON, April 10 Copy
right) t).-Government finances are In
the worst jam they have been in since
the war
Secretary Mellon estimates the total
deficit for the fiscal year beginning
July next at nearly a half billion dol
lars. Congress is on the verge Of
passing a soldiers compensation bill
as we'll as other measures for rivers
and harbors. Nobody knows how
much higher the deficit may go,
though officials estimate that II the
soldier bonus bill should become law
the amount of the deficit may reach .
billion dollars.
President Harding is deeply con-
cerned over the situation He may
read a special message TO Congress In
an effort not only to secure greater
economy on existing appropriation
bills but to head off the soldier bonus.
The action OF the Senate Republican
caucus in voting to have soldier
bonus bill passed at this session pre-
cipitates the issue. No specific blu
was advocated by the caucus and the
resolution can be interpreted, IL the
Republicans choose, as a vote in favor
Of bonus bill with other forms Of
compensation besides cash or borrow
ing, such as land grants, vocational
otH a. in, a
which favors the House bill will not
let that be the Interpretation without
a vigorous fight.
Before the climax cfmes, however.
several developments may he looked
for. among them a reiteration Of the
Governments financial situation. In
an address by the President to the
| Senate.
Mr.. Harding knows that II the
| House bill were to come to a vote
to-day II would be passed by an
overwhelming majority. The swing
in sentiment in the Senate toward
passage of bonus bill with money
in II for the service men has been
| gradual.
| Talk Of burying the bill in the Sem
ate has been swept aside by the ae-
tlvity of the bonus adherents. who
threaten to jam the whole Legislative
programme unless they get vote on
the bonus. Once the measure is up
for vote, there will be few who will
dare ~ go on record against It.
In these circumstances, Mr.. Har-
ding's only chance to prevent the
sage of the House bill or any meas
ure which further drains the Treas
ury lies in a message setting forth the
financial situation explicitly. II is
feared this may injure the chances OF
the Republican majority in the COM
ing elections, because MIR. Harding
will have to state publicly that the
Administration faces $500. 0oo, 900
deficit and that the economy pro-
gramme started out so auspiciously
with Director Dawes has failed to
balance the budget for 1929.
Mr.. Mellon, however. has already
disclosed the painful facts, SO that
from a political viewpoint Mr.. Har-
ding will not be able to erase the i'm
preston thus far made by the an
nouncement of a half billion dollar de-
ficit. Unless Mr.. Harding Is able to
exercise further control over his party
In the Senate, the chances are the de-
fcit for 1928 will grow larger. So
the Executive is compelled by circum-
stances to call halt toward further
expenditures.
In many respects the fight that is in
prospect looks as though it will bring
the turning point in the Harding
Administration. The President has not
given vent to his feelings over the
continued indifference of Congress to
his expressed wishes. He and his
Cabinet had fight hard to over
throw naval committees recon-
mendation in the House last week and
the Executive is being cncourag ged to
use his influence even further to Sc
cure Congressional acquiesence in his
viewpoint.
| Curiously enough, most members or
Congress expect Mr.. Harding to sur
render TO them on the bonus issue. and
they insist that, deficit or no deficit,
he will have to sign the bonus bill or
see it passed by a two-thirds vote
over his veto.
Mr.. Harding has not made public
| wv NNlhAtSN Nv " III 1ub VDOluL
however. is clear. The plan to side
track the tariff and take up the bonus
issues doesn't have his approval. He
believes the tariff pledge should be
redeemed before anything else is done,
as there has been so much delay.
The tariff problem is complicated
on every side. 1t looks like a pro-
longed debate. The supporters OF tho
bonus are impatient. The first skir-
mish will come over giving the bonus
hill right OF way over the tariff. II
defeated in that, the supporters OF
the bonus will merely renew their
fight when the tariff is out OF the
way.
The statement of the Governments
fiscal situation is counted upon mean
| uyhila IN nrcVpnt Drppi nitata action