Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-02-22
Committee on
Bonus Talks
with Mellon

Washington. Feb. 21.-The seven
Republicans of the House. Ways and |
Means committee who are charged |
with solving the problem of financing
the soldiers bonus, expect to get
down to brass tacks tomorrow.
Chairman Fordney said late today
after the committeeman had had an
other general discussion of the whole
question with Secretary Mellon.
The treasury secretary was heard
behind closed doors but he was I'M
derstood to have taken substantially
! the same position that he did at the
open hearings two weeks ago, when
he reiterated his opposition to a
| bonus at this time, but declared that
| if such legislation were to be passed
| it should be financed by a sales tax
OF some other form of taxation.
Asked what the treasury would do
if Congress passed a bonus bill as
a general charge against the treas
| ury, Mr.. Mellon was said to have
| replied that the amount would be
paid by issuing short term certifi-
Gates. He opposed this form of fin
ancing, however. on the ground that
it might affect the interest rates on
| the refunding of certificates due in
1923. Some members of the COM
mttee quoted the secretary as say
| ing in substance that as between the
sales tax or bond issue for the bonus
he would recommend the former.
| Members of the sub committee
would not anticipate committee
action. but the general belief at the
Capitol continued to be that some
| form of sales or manufacturers tax
would be recommended. 1t was
| pointed out in some quarters that
with President Harding opposed to
both the original tax program sug-
| gested and to the issue of bonds, the
| field had been narrowed to a sales
tax or the drafting of a measure that
| would be general charge in
| treasury.
e. This last plan is supported by
scme Republican leaders of the
/ House and also by those who are
| leading the opposition to a sales tax.
Representative Frear. Wisconsin, de-
! clared in a formal statement tonight
| that he believed he spoke the senti-
! ments "of a hundred Republican
| members of the House to the effect
i that a sales tax will be opposed, or
any rule seeking to impose it on the
members" He explained that his
| announcement was based on the fact
| that seventy Republicans had signed
! petition against any sales tax and
! that many others would sign.
Nearly all of these one hundred
! members are in favor of d bonus
bill, said Mr.. Frear, land in favor
OF having it passed the same as the
| bill was reported to the Senate, leav-
| ing the treasury to finance any i'm
mediate demands. estimated at ap-
proximately 100000 during the
I, coming year, by the issuance of
! certificates which will be covered by
| the foreign loans. This does not
take into consideration any economies
| that may be put into force"
Urging adoption of sales tax
! similar to that in force in Canada,
Representative Volk of New York
sent an open letter to Chairman
! Fordney asking that the sub-com-
mittee hear him on the question. He
said that if opportunity were given
| for an explanation of how the Ca
madam law would work in this
| country, it was his judgment that
! the sub committee would favorably
| endorse this plan of raising bonus
| revenue.
ut seems most unfortunate" he
| added. that so many conscientious
| and we'll meaning members Of the
! House. though lacking understand
ing of this most beneficial legisla-
| ton, will rush to put half baked
ideas into print and circularize men,
bers of the House with misinforma-
ton and misleading statements"