The Washington herald., 1922-02-15
Congress Hopes President
Will Propose Way
Out of Difficulty.
PREDICT REQUEST
FOR POSTPONEMENT
Executive Opposes Bond
Issue as Likely to
Hamper Treasury.


Congressional leaders are more
than ever at sea with regard to the
. soldier bonus measure.
Where will the money come from?"
they ask.
Word from President Harding is
awaited. Committees met to receive
II yesterday. but they were informed
the Presidents views sFould be COM
municated today.
What the President will recon-
mend no one in Congress knows
Some think he will propose a lax
of some sort; others believe a bond
issue in some form will be suggested.
May Ask Postponement.
The President is committed to the
idea that a bonus bill must be en-
acted. This was made clear at the
White House. He Is not committed.
however. to payment OF a bonus at
any certain time, nor In any>cer-
, tain manner. This was made equally
clear and led to the belief that the
President might again ask for a
postponement, oasing his request on
the argument that the country Is not
vet able to produce the large amounts
Of revenue the bonus will require.
Here are some Of the alternatives
open to the President:
Complete reputation of the bonus
project, regarded as out Of the ques-
ton
Postponement Of the payments.
Approval Of a small bond issue for
the initial payment with subsequent
payments to be made with funds from
the repayment Of debts by foreign
governments
May Leave IT. to Congress-
Payment of the bonus with bonds
to be given the veterans. the bonds
to be discountable at a Federal Re
serve bank
Imposition Of a sales tax to raise
the necessary revenue.
There were indications that the
President might make no definite rec
concentrations Of any sort II ne
did this. he would simply be pass
ing the buck" back to Congress. The
question Of how to get the money
for the bonus was shifted to the
white House when Congress found
itself unable to devise satisfactory
methods. The taxes suggested by the
ways and Means Committee created
Immediate and effective opposition
throughout the country-opposition
that was echoed from the White
House.
Opposes Bond Issue.
Then It was thought the Presi-
dent would favor a bond issue. as
leaders suggested. But this, he
holds, would increase interest rates,
disturb financial stability and re-
tard economic recovery. Moreover,
restoration Of any of the taaes just
repealed, or increase in any of those
reduced, is regarded with the same
| disfavor as the imposition Of spe-
cial taxes.
So Congress waits. The President
IS confronted with the problem Of
making available $500, ,000,0 900 or
s4oO, ,0O0,000 annually for three
years without increasing taxes or
borrowing Otherwise, the bonus
bill must again be sidetracked. The
task of the President, as he sees il,
Is to square his own promises, and
the promises of his party. with the
best interests of the Treasury ana
business In general
King Attacks Bonus.
The attitude of the President to-
ward the issuance of bonds was
made known following a session uf
khe Cabinet, at which the bonus bill
was discussed. Secretary of the
Treasury Mellon. 1t was thought,
hrgued successfully In support sof
his position that borrowing would
apset financial stability and inter-
kere with the funding operations of
he Treasury. These funding oper-
ktions call for extension Of the time
be payment of six billions of se-
Furities during the next fifteen
months.
The attack on the bonus was con-
inued in the Senate yesterday by
senator King. Democrat, Of. Utah,
Fho denounced Republican leader
hip. =
The question before US now
|eems to be insoluble so far as
Congress is concerned" King oe-
Jared The Republican majority
afraid to act. 1t does not dare
ct in the daylight. and 1t is afraid
act in the darkness, and 1t is de-
diving upon the Executive the en-
Ire responsibility of formulating
onus legislation.
Confessing their impotency, they
b with hat in hand and on bend
knee to beg the President of the
nited States to help them out Of
heir dilemma"