The Challis messenger. (Challis, Idaho) 1912-current, 1922-02-22
CONGRESS ASkfU
FOR SALES TAX
PRESIDENT HARDING U r q e S
SALES TAX AS METHOD FOR
PROVIDING BONUS
Executive Believes American People
viii Accept Levy for Veterans
And Thereby Not Burden
Read justment

sA~~~JSSe's
Washington.-Preside Harding in
formed congress Thursday he cOnsid-
cred a general sales tax the only feas-
ible method of raising funds for SOL
diers' bonus.
The executive in a letter addressed
to Chairman Fordney of the house
ways and means committee, and sug-
gested that unless congress saw fit to
enact sales tax, passage Of bonus
legislation should be temporarily post
poned.
The text of the presidents letter fol-
lows:
I'm accordance with the promise
made to yourself and your associates
on the senate and house committees,
charged with the responsibility Of for
mulating proposed bonus legislation, l
have carefully looked into the program
Of taxation which has been suggested.
In addition thereto, have made in
quiry into the feasibility Of issuing
either sh0rt-time treasury notes or
long time bonds to meet he financial
obligations which the proposed legis-
latfon will impose. 1t is not possible
to command to you either of the plans
suggested.
1T Is fully realized how great is
the difficulty which confronts the
congress In solving this difficult prob
lem. l am aware the strong senti-
ment in congress Is In favor of this ad-
justed compensation. have spoken
approvingly myself, always with the
reservation that the bestowal shall be
made when it may be done without
such injury to the country as will null
lily the benefits to the ex-service men
themselves which this expression Of
gratitude Is designed to bestow.
1T b not an agreeable thing to sug-
sest that action be postponed again,
but frankly, do not find myself ia
rorable to the piece-meal payment
plan, which Is manifestly designed to
avoid embarrassment to the treasury.
The long drawn out payments will not
Afford an effective helpfulness TO the
service men.
I'VE have no Serious problem in be-
ginning the allotments of public lands,
ma the Immediate issue of paid up in
'urance. The real difficulty lies in
the payment Of the cash bonus. Rath-
Or than provide that the maximum cash
payments shall extend over a period of
and one-half years, 1t would be
astiy better bestOwal If we could
AWAIT the day when we may safely un-
'ertake to pay at once in full. so that
ne award may he turned to real I'D.
lntage.
inasmuch as the treasury is to be
'aiied upon to meet more than $1,000.
W'ooO Of maturing obligations in the
sixteen months Immediately before us.
It Is not possible to recommend the
ssue OF several hundred millions of ad-
"t'ona' short time notes Further ex.
9essave borrowings would likely undo
all that has been accomplished in 70.
ADJUSTING interest rates and STABILIZE.
ing the financial world, both vitality
essential to the resumption of indus.
rial and commercial activities.
Granting that 1t is not fair to on.
pose any proposed plan without Of
.er'ng substitute, let me repeat that
believe the American people will ac-
eept the levy of general sales tax
20 meet the proposed bonus payments
Anu we should contribute therby. no
Auueo dlHiculties to the problems OF
adjustment.
take 1t that the eX-service men
themselves are no less concerned than
others about the restoration of hus
ness and the return to abundant em-
p'oyment Those of their wounded Or
SICK comrades who were impaired nv
nelr war service, are being cared for
WIN the most liberal generosity the
ia.'on can bestow. There are here
'na there exceptional cases of neglect
'"u attending complaint, but We are
.eN'ns them out and correcting with
~ possible speed. 1t has not been nos
''o'e 10 meet all the demands for spec.
al disqualification but we mr.. h,,,d,,,
w. !" '"at end' without counting the cost
we are expanding four hundred mil.
WI u'llars a year In compensation
~, and rehabilitation
."eSe 'h'ngs are recited TO reassure
you that such delay as will enable
'"hgress to act in prudence for Mo
:, , GOOD will have no suggestion
u unmindfulness or ingratitiude"