The New York herald., 1922-02-17
Promoters Admit They Are
at Loss to Find Way to
Raise Funds.
COMPROMISE rs STARTED
Generous Provision for Wars
Disabled May Take Place
of Original Proposal.
BY LOUIS sEIBoLD.

BY LOUIS sEIBOLD.
Special Dispatch to THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. c.. Feb. is. I ,t
The bonus raid on the finances OF
the Government and business Of the
country apparently is facing defeat
tonight.
The supporters of the various
projects to impose additional hard
ships on the country privately admit
that the outlook for success is far
from encouraging. They are still
clamoring for the enactment of a bill
which will satisfy the promoters OF
the bonus scheme. They have not
given up the fight, but the impression
largely prevails among Senators and
Representatives that it is doomed to
fail.
The most decisive blow yet aimed
at the bonus raid came from PresI.
dent Harding this afternoon. Con-
vinced that the overwhelming ma
jority Of the people of the country
/ have been aroused to intense resent.
ment against the scheme, the Presi.
dent with pronounced positiveness
expressed his disapproval of all the
plans proposed for financing ii.
The proponents of the bonus raid
had not recovered sufficiently to-
night to decide upon new method
of attack. The President. in re-
spending to the appeal made by the
Republican majority for help in solv.
ing the most disturbing Legislative
problem in recent years, declared
that in his judgment only two plaaI
| for settling the bonus dispute ap
peared feasible.
The Presidents suggestion~.
| In letter to Chairman Fordney C.
the House Ways and Means Commit.
tee the President suggested:
1. A general sales tax on prod.
ucts and merchandise which
would distribute the cost OF re-
warding ex-service men in such
manner that it will fall upon the
people generally and will not com.
pei the Government to impose
taxes on any one class OF people,
or the restoration of the wartims
( excess profits and surtaX.
2. The postponement of bonus
legislation until the country may
safely undertake TO pay the eX.
service men at once in full, so that
the award may be turned to real
advantage without such injury TO
the country as will nullify the
benefits of the bonus to the ex.
service men themselves.
The President offered no other suE.
gestion that in his judgment could
| safely be adopted to raise money for
the bonus without disastrous conse.
quences to the people of the nation.
He expressed his disapproval of tha
plan to issue short time Treasury
notes or long time bonds.
The Presidents decision, which was
not unexpected, caused the greatest
CONSERVATION among the promoters
Of the bonus raid in the two houses
OF Congress. His positive disapprovsl
Of all the impractical plans previ.
ously proposed left the various
groups supporting the tax and bond
projects entirely at sea. His sug
gestion that a sales tax be adopted
Instantly provoked resentment among
members representing agricultural
sections of the country.
Two Tax Groups Busy,
Opponents Of the sales tax plan i'm
mediately revised the plan Of restor'
ing the wartime excess and surplus
taxes which were modified by tbs
last Congress. The sales tax and
excess profits tax projects are square
ly pitted against each other tonight.
II is the judgment of the best IN
formed men in both houses, how.
ever, that both will he finally aban'
doned. Whether the bonus plan itself
will be consigned to the scrap heap
as at this time seems likely is prob
lematical.
Senators and Representatives who
havo committed themselves to- the