The New York herald., 1922-02-22
BONUS DEATH THROES
SEEN in TAX PROTEST;
BACKERS JOINING FOES
Commander MacNider of Legion Stirs Strong Resent
ment by Telegram to Harding g-Seventy Repre-
sentatives Unite Against Sales Levy
Three Senators Announce Hostility
to the Gratuity Scheme.
BY LOUIS sEIBoLD.

washington, u. C.s reD. II.
Several important developments
to-day combined to support the i'm
preston that the bonus raid on the
Government finances and the bust
ness OF the country is dead, for the
time being at least.
1t may get a new lease Of life as
a result Of the persistent activities oi
its friends, who refuse to admit de
feat, but the belief generally pre-
walls in both houses Of Congress that
it will be put away in cold storage
after gasp or two.
That it will crop out later and al
every session of Congress for many
years to come is highly probable
But unless the present situation
should radically change, executive Of
ficials and the more level headed
members of the two houses are con
vinced that no measure which will
stand chance of receiving Presiden
tial approval or repassagc in the Sen
ate over veto will get beyond the
House of Representatives.
Causes of the Change.
The causes that contributed to the
belief that the raid is to be temper
arily suspended are these:
l. The approval of round
robin" circulated in the House by
the delegations from several States
pledging the signers to oppose the
adoption of sales tax for financ-
ing the bonus or for any other rea-
son, the effect Of which makes the
passage of-9vDonus bin practically
impossible.
2. The statement of Secretary of
the Treasury Mellon and Commits
sioner OF Internal Revenue Haines
to the Ways and Means Committee
of the House this afternoon that
the adoption Of a tax on sales or
increase in any other form Of taxa
tion will prove disastrous to the
country as well as greatly jncreas-
ing the cost Of administration
through the creation or a new and
expensive Treasury bureau.
8. Indignation and resentment
among executive officials and mem
bers OF the two houses over the i'm
pertinent telegraphic demand made
by Commander MacNider of the
American Legion that the bonus
bill be put through without further
delay, communication that is ex
pected to elicit reply from the
President clearly stating his own
feelings in the matter.
To Concentrate on Disabled.
4. The pronounced growth of SEN
timent in favor of postponing for the
present consideration of any lcgis-
lation for the benefit OF ex-service
men except bill making the most
liberal provision for the sick,
wounded and helpless victims of
the world war, which is already as
sured.
S. The opening of a bitter fight
between Senators and Representa-
tives representing the agricultural
bloc on the one hand and the advo-
Gates of bonus legislation on the
other over the sales tax.
Experienced observers in both
houses OF Congress were in unani
nous agreement tonight that under
present conditions it will he impos
sible to pass a bonus bill in either
branch and especially in the Senate
The optimism of Senators and Rep
resentatives who favor adoption OF
the sale. tax to finance the bonus raid
was punctured by Secretary Mellon
at his conference with the members
of the Ways and Means subcommit.
tee. The Secretary told the legisla-
tors he had not changed his mind as
to the undesirability Of issuing short
term certificates or long time bonds
or imposing further taxes on the peo-
pie.
Indorscs Harding View.
Secretary Mellon indorsed President
Harding's suggestion that the least
Objectionable way to raise money for
the bonus raid would be through the
adoption OF general sales tax on
production rather than on specific
commodities. He said sales tax OF
from to 4 per cent. would be needed
TO raise an annual revenue of $780,
100000. which would be necessary tc
carry out the terms of the bonus
measure.
The Secretary said that in his judg-
ment and in that Of the experts who
accompanied him the Smoot plan OF
Continued on Page Eight.