The New York herald., 1922-05-10

Win q DoiioWih6 soAoO CT e"S Shu
Cumber plan, because it is the conc
Finance Committee.
The other scheme for financing
will make known conclusive objectic
to give to each ex-service man paid
up insurance certificate without bor-
rowing value to run for twenty years.
what Bills Would Have Cost.
The McCumber plan would cost ap-
proximately SO0,000,Oo0 without
taking into account interest and ad'
ministrative charges, which would
swell it to around SIS, 200, 100000. The
Smoot plan would cost $2,900.000, 900
plus interest and administrative
charges.
The principal objections which
members of the two houses expect the
President to present against both
schemes will be practically the same
as those he raised against the Ford
ney bill before it passed the House.
One is that neither the McCumber nor
Smoot plan provides sources of reve-
nue. to pay the bonus benefits. An
other is that neither provides the I'M
mediate cash benefits demanded by
the American Legion and other bonus
claimants.
Adequacy of Sales Tax.
The President will express his be-
lief that the adoption Of the sales tax
would provide adequate funds to
finance the bonus and furnish per-
manent source Of income for other
Government purposes.
The information regarding the Pres
ident's consistency of view regarding
the bonus was Of such a direct char
acter to-day as to permit of no ques-
ton regarding the accuracy OF IL. SEN
ators favoring, opposing or holding
neutral position on the bonus raid ac-
cepted it as conclusive.
The principal effect of it this after
noon was to compel a change OF the
plans of the bonus Senators. Three
weeks ago to-day conference of Re-
publican members of the upper house
directed the Finance Committee to
prepare bonus bill and report it to
the Senate as soon as possible.
The alternative was notice that
motion would be made to-day by Sem
ator Lenroot (Rep., Wis.) to discharge
the Finance Committee from further
consideration of a bill favored by
ma jority of the Republican Senator's.
Democrats Serve Notice.
Taking their cue from the aepubli-
cans. Democratic Senators served no.
tice that they would make a similar
motion if Senator Lenroot failed to do
so. The motion was not presented be-
cause of combination of circum-
stances that contributed to invest the
whole bonus project in an atmosphere
of haze and uncertainty.
The reason the Republican bonus
Senators did not proceed with their
scheme to discharge the Finance Com
mittee was set forth in an explanation
made by Senator Lenroot. Substan-
tally IL was that "inasmuch as the
matter has been submitted to the
President with request for his views
the proprieties demand delay until the
committee had been advised OF his de-
cision."
The probable reason for the Demo-
cratic failure to move TO discharge the
committee was based on a suspicion
that the Republican leaders would try
to put the minority party in hole"
by compelling 1t to provide the ma
jority of the votes by which the bill
was taken from the Finance Commit
tee and ultimately it's passage through
the Senate.
VIII Create Unexpected situation.
The Democratic program to force
the Republicans to pass the bonus
project is predicated solely on the am
bition to "put the Republicans in
hole" 1t became quite clear to-day
that the adverse decision Of the Presi-
dent regarding the McCumber and
Smoot plans will create an entirely
unexpected situation in the Senate.
Many members of the Presidents
party will support him. in any position
he takes--probably enough combined
with the straight out opponents of the
bonus to compel the Democrats to pro-
vide the larger number of votes to ac-
complish II. The realization of this
contingency probably had a great deal
to do with the change OF the Demo-
cratic program for putting the Re-
publicans in n hole"
All doubt as to the final attitude of
several Republican Senators who have
to date favored the bonus has been
swept away by the frank statement OF
the majority of them that they will
support the President.
A canvass of the Senate by mem
bers of that body has justified them
in asserting that oinstead of there