The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-04-22
SENATE EVOLVING
FINANCIAL SCHEME
Will Provide Treasury Ger
tifcates to Pay First
Soldiers Bonus
NOTAX INCREASE
BEFORE ELECTION
VIII Forget Half Billion Deficit Until
December Session - Indications mat
Sales Tax Will Be Adopted - Hard
ing FayOrs Such Tax.

By DAVID LAWRENCE.
5crac;al Dispatch to The Reformer) |
Copyright 1922.
WASHINGTON, April 22.-Agree-
ment between President Harding and ad-
ministration leaders over the financing OF
the government deficit as well as the
handling of the bonus issue appears to be
in sight.
Definite plans are in the making which
If is hoped will bring President Harding
and leaders of the house and senate into
accord and allow passage of a bonus bib
within the next few weeks.
Mr.. Harding has not yet consented 10
the plan. but has encouraged senate lead !
| prs 70 work it out in detail and confer
further with him about it.
First of all. the plan provides for the
| payment of a bonus to ex-servlce men
this year The President was told by
Senator Watson of Indiana that there
were enough votes to pass a bonus bill
in the senate and. indeed, TO pass the
house bill if that is the only measure SUD
mitted In the face of certain veto Oh
the house bill Senator Watson ana ms
associates are at work on supSIltIte
I which NAV WIN executive apply a. ~
process is somewhat complex, but unless
Secretary Mellon can find a serious nav
in If the chances are it will go through
Here is the situation and the plan:
The Senate Plan.
The senate cannot originate revenue
legislation. but it can amend any acl
already providing for collection OF reVe-
nue. So the pending tariff act Will De
used as a device to overcome constltu-
+ional objections In the tariff bill Will
, be written a clause empowering the treas
urv TO issue certificates OF Indebtedness
- amounting to approximately S1Oo,9uV'-
600 which is the sum experts DeileVe Lilt
bonus will require the first year. Inc
! authority will be given theoretically 1T
anticination of receipts from import
duties. In other words, to meet expenses
of tbe government the treasury Will Dor
row from the public to the amount O.
S1O5 100000 and presumably pay 1t Daci
from tariff receipts.
But that will not be necessary becaus'
~ hv July 1 the United States government
will receive S2OO.O0O,0O0 from Grea
Britain as interest on the war debt. I'M
uw sum will be used to retire the treasur,
A certificates President Harding woub
i not permit the treasury certificates 70
4 issued as against receipts OF interest iron
\ foreign bonds until the money is actual,
I in the governments possession. 80 IN
1 leaders are lacking the measure on tn
A tariff bill. The best course would nav
been to wait until July l and then lssu
l treasury certificates, but administrator
/ leaders are embarrassed by the acton
the Republican conference of this wee
which has ordered the senate fnancc
committee to report out bonus bl
4 within a reasonable time and this now
\ interpreted as meaning two or thft
weeks Rather than accept the nous
4 bill, which would be futile and mean
\ presidential veto. the senate Leaders fe
I the treasury certificate plan will meet IL
~ wishes of the house ways and NEAR
- committee, as well as President Hardin
~, and would save much legislative tim
British Interest for Bonus.
To issue the treasury certificates on Il
expectation that arif receipts will provlc
enough money to retire them Is nece
sarily doubtful, but the Republican lea
4 erS do not for a moment expect revenue
from import duties to pay the bonus
they are confident of the British interes
%S Treasury officials confirm the informatlo
- that the British will pay the interest G
the first of July. This gives S2OO,OOO,oO
which Mr. Mellon had already counted
~ before making his statement of S4S4