The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1922-02-17
HARDING OPPOSES
TAXES FOR BONUS
President Is Against Enactment
of Special Levy.
MELONS VIEWS UNCHANGED
Democratic Senators Rap the Repub-
Iican Stand-King of Utah Calls
Situation a "PitiabIe, PitifuI,
Lamentable Spectacle"

Washington Feb. 10. = President
Harding is unalterably opposed to the
enactment Of the special taxes sug-
gested to finance the soldier bonus or
to the return to taxes which have been
repealed, it was stated officially at the
White House.
The question OF how the soldiers
bonus should be financed still was I'M
der consideration by President Harding
and was understood to have been
meeting.
At the capital, it appeared that senti-
ment was steadily growing in favor
of an issue of shOrt-term treasury
notes covering the estimated cash
payments of about $800,OO0,000, which,
under the terms of the bill, as now
considered by the house ways and
means committee, would be made over
the 80 months period beginning Janu-
airy Z, 1928.
Suggested Five-Year Notes.
Some congressional leaders were OPP
posed to depending directly upon any
part of the refunded foreign debt as a
means of financing the bonus, but they
said that when the debt bonds had
been obtained part of the interest or
principle could be used in retiring the
treasury notes. 1t is understood that
the suggested life of the notes is five
years.
When the President conferred on
this question with Secretary Mellon it
was understood two proposals result
ing from committee discussion of the
subject had been presented to him for
discussion. Republican members of
the house ways and means committee
nave suggested a program of special
taxes to raise the necessary revenue,
atOr SmOOt of Utah, ranking Repub-
lican member of the finance committee,
put forward the treasury notes plan.
Both Plans Before Harding.
The two plans are understood to
have been placed before the President
following an attempt to thresh the
matter out in joint conference after
been opposed by majority members of
the finance committee.
There was no indication that Secre-
tary Mellon, following his conference
with the President had changed his
views with regard to the issuing of
notes or bonds as expressed in his re-
cent letter to Chairman Fordney of the
siOnal leaders, on the other hand, said
there appeared to be a growing oppO-
sition to the levying of additional taxes
at this time.
King Raps Republicans.
Senator King Oem., Utah), in the
senate called the bonus situation a
''pitiable, pitifuI, lamentable spec
tacle." He predicted that the Repub-
licans would authorize the bonus and
order bonds issued to meet the cost,
while it should be met he said, by
taxes.
The Republicans, Mr.. King asserted,
had gone to President Harding ION
Bonded knee" and turned the bonus
question over to him for q solution.
He said he hoped the President would
turn it back on the Republican leaders
in congress, who, he charged, were
"abdicating' to Mr.. Harding
"Where are the boosted independ-
ence and competence of the Republic
an party?' asked Senator King. ''The
brave and courageous Republican ma
jOrity is afraid to act. They're afraid
of the farmers vote, of the business
vote and of the soldiers VOTE"
Says Washington Took Bonus.
Statements that George Washington
and General Lafayette received grants
of bonus from congress were made
in the senate by Senator Watson
Oem., Ga.,). in support of the bonus
legislation. Mr.. Watson renewed SEN
ate discussion of the bonus in a speech
replying to that by Senator BOrah
(Rep., IdahO), who cOntended that the
government should have first concern
for disabled soldiers.
Taking issue with Mr. Borah's posi-
ton, Mr. Watson said he deplored the
effort to tack odium to the word
bonus" and added:
washington took his bonus from
the French and Indian wars and so
did all of his soldiers in grants of
land. Washington, too, got his bonus
for service in the Revolutionary war,
and he didn't get disabled and didn't
get a single scratch. But he took the
bonus. A prouder man never lived"
Mr. Watson said that congress grant
ed General Lafayette bonus of $780,