Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-02-22
DEVELOPMENTS REGARDING
THE SOLDIERS BONUS

Washington, Feb. 21.-The seven re-
p1Ibficans of the house ways and means
committee who are charged with solving
the problem of financing the soldiers bon
us expect to get down to brass tacks
tomorrow, Chairman Fordney said late to-
day after the committeeman had had an
other general discussion of the whole ques-
tion with Secretary Mellon.
The treasury secretary was heard be-
hind closed doors, but he was understood
to have taken substantially the same po-
sition that he did at the open hearings
two weeks ago when he reiterated his op-
position to a bonus at this time, but de-
clared thai Is such lE.AzWton 3u@s 20 be
passed it should be financed by a sales,
or some other form of taxation.
Asked what the treasury would do if
congress passed bonus bill as general
charge against the treasury, Mr.. Mellon
was said to have replied that the amount
would be paid by issuing short term GER
tif1cates He opposed this form of I'm
ancing, however, on the ground that it
might affect the interest rates on the re-
funding certificates due in 1928. Some
members of the committee quoted the sec
retary as sa ying in substance that as be-
tween a sales tax or bond issue for the
bonus he would recommend the former,
Members Of the subcommittee would
not anticipate committee action but the
general belief a the capitol continued to
be that some form of sales or manufaetJIr-
ers tax would be recommended. 1t was
Ioonted out in some quarters that with
President Harding opposed to both the
original tax program suggested and to the
! issue of bonds. the f1e1T ha-e been mar
ruwed to a sales tax or the drafting of
measure that would be general charge
on the treasury.
This last plan Is supported by some re
publican lea ders of the foIsse and also by
those who are leading the opposition tc
| a sales tax Representative Frear, Wis
consin, declared in a formal statement to-
night that he believed he spoke the senti
| ments "of a hundred republican mem
bers of the house to the effect that a sale,
tax will be opposed or any rule seeking t.
impose it on the members He explain
ed that his announcement was based OF
the fact that seventy republicans has
signed a petition against any sales ta'
nd that many others N01.d sign
Nearly all of these one hundred mem
bers are in favor of a, bonus BILL" sai'
Mr. Frear, land in favor of having
Itassed the same as the biH was reportei
to the senate, leaving the treasury to fin
ance any immediate demands, estimated a
alt5roximately $500, 100000 curing tn
coming year, by the issuance of certificate
which will be covered by the foreig
loans. This does not take into consider
alton amy economies that may be put int
force"
Urging adoption of a sales tax simila
to that in force in Canada, Representative
Volk of New York, sent an open lette
today to Chairman Fordney asking tha
the subcommittee hear him on the ques
tion. He said that If opportunity 7@Ser
given for an explanation of how the ca
madam law would work in this cd1ntr,
1t was his judgement that the sui
committee would favoraibly endorse tn
plan Of raising bonus revenue.
1T seems most unfortunate" he adde
that so many conscientious and We
meaning members of the house, thoug
lacking und erstanding Of this most BEN
fetal legislation, will rush to put ides
into print and circularize members
the house with mfsinforrnation and mi
leading statements"