The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-01-18
REPUBLICANS IN
SENATE ALMOST
SOLID FOR BONUS
Vote 81 to 2 to Push Veteran
Compensation Bill.
Comes Next After Foreign Debt
Refunding Act.
USE SALES TAX PLAN TOO
Capper Is Lined Up Against
New Levy Idea.
Administration Now FayOrs
Combined Bonus Plan.
USE SALES TAX PLAN TOO
Capper Is Lined Up Against
New Levy Idea.

Washington. Jan. 1S.-Passage of
tho foreign debt funding bill and of a
soldiers bonus bill was formally de-
cided upon TO-DAY at a secret confer
ence of practically the entire Repub-
lean membership of the senate.
The action taken on the foreign
debt bill was unanimous. it was stated
by Senator Lodge, Massachusetts, the
Republican leader, but some opposi-
tion developed to the soldiers bonus
plan. It was finally adopted, how
ever. after considerable discussion by
what was described as a large ma
Jority vote
Little Opposition Developed.
Opposition to a soldiers bonus bill
developed, but it was announced Of
ficially that the motion to place this
legislation second in the list was car
ried by "a large majority" Elimina-
tion by the finance committee OF the
requirement in the allied debt bill for
semi-annuat payment of interest on
the bonds to be accepted from the for
eign debtor nations also was discussed
but a decision of this feature of the
bill was deferred.
It was reported that the vote in IA
vor of passing a bonus bill was 81 to
2, with several opponents of such leg
islation Withholding their votes. While
the conference did not approve the
pending bill, some Republican leaders
said the measure to be passed un-
doubtedly would follow the general
principle of the measure now before
the finance committee.
VIII Take Full Year.
1t will be fully year before the
United States can arrange funding
terms for The 81. 900. 100000 foreign
debt and probably much longer than
Eefore interest payments start coming
in, treasury officials said today.
One nation has already informally
advised the treasury department that
at probably would not be able to
meet" its interest payment next fall.
While treasury officials said today it
would be unfair to name the coun-
try concerned. it is believed to be one
of the smaller countries OF central Eu-
rope. which aref in hard financial
straits.
Use Sales Tax Too.
A sales tax, combined with a British
bord issue. is the administration pan
for financing the soldier bonus. it was
revealed today by Senator Lodge of
MasSa achusetts. the Republican leader,
ard Senator Curtis of Kansas, the Re
publican whip before a conference
of the Republican membership Of the
senate.
The conference, embracing practi-
cally the entire majority membership
of sixty i'll the upper chamber, was
called by Senator Lodge for the ex-
press purpose of considering the for
eign debt funding bill and for provid-
ing. If possible, united Republican
support to insure its early passage by
the senate.
Time Now Main Issue.
II was understood that differences
of opinion prevail among Republican
senators participating in the confer
ence as to the length of time that
would be required for the working
out of the British bond issue and to
bring sufficient cash from the sale of
the proposed bonds in this country to
finance adjusted compensation for ex-
service men.
Several administration spokesmen
who take a leading part in the con-
ference. were authoritatively repre-
sented as stating the president is ia
vorably inclined towards a sale tax
being employed for the purpose and If
it were found that if at least a year
may elapse before a substantial re-
turn on the British bonds could be re-
garded as a certainty.
Sales Tax Not Abandoned.
Senators favoring a sales tax re-
ported as favoring such a tax bill
coupled with the proposed British
bond issue as means Of not only
securing the adoption of a sales tax
but the permanent basis of taxation.
The first step towards carrying out
the plan of linking the soldiers bonus
with the foreign debt. it was explained
by Senator Lodge. was the immediate
passage of the debt funding bill.
1t was so stated that amendments
would be offered by Senators LaFol-
lette. of Wisconsin, and johnson. of
California, both of whom absented
themselves from the conference to re-
quire congressional legislation for any
adjustment, of the foreign debt, which
might be necessary by the commission
of five created by the pending bill.
Passage Is Assured.
The passage of the bill in the form
desired by Republican leaders was
confidently predicted by them.
Strong opposition to the sales tax
features of the administration plan
was understood to have been ex-
pressed by a number of senators. who
Included members of>the agricultural
bloc" 1t was said these senators in
cIuded Gooding, of idaho; McNary of
Oregon; Lenroot. of Wisconsin; Cap
per. Kansas; Kenyon. Iowa; LaFol-
iette. wisconsin; Borah. Idaho; Nor
ris, Nebraska; Ladd. North Dakota.
and johnson. California.
EastIand Disaster Claims DiSallOyyetI