The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-23
PRESIDENT
is SURE TO
VETO BONUS
Harding Sticks to Demand
for Sales Tax
First.
BY DAVID LAWRENCE.


Washington, d. c., June 20
President Harding's assertion OF
leadership during the past week ID
persuading the senate not to SIDE
track the tariff bill for the bonus
has revived the hopes of opponents
of the bonus that Mr.. Harding's
veto message will have a much
more powerful effect on senatorial
opinion than was at first anucl-
| pated.
There are those on Capitol Hill
who mistakenly believe Mr. Hard
| ing will sign the bonus bill. Sen
ator James Watson of Indiana so
predicted in a public speech which
! has never been specifically contra
dicted and members of congress are
assuming that the Indiana leader
wouldn't have made his statement
without some assurance.
| Investigation shows that If the
bill were to come to the president
today Mr.. Watson would be proved
a bad prophet. For the president
! is determined to veto the bonus Dill
This correspondent has been as
sured SO positively on this point
| that aSl doubts may be dismissed.
Mr.. Harding stands sQuarely on the
position he took when the bill was
up in the house. He favors post
ponement of the bonus if a sales
tax is not enacted. The measure
pending in the senate doesn't pro-
vide a sales tax and is practically
the same as the measure which
passed the house.
Not Against Principle.
Mr.. Harding wants it understood
that he is not opposed to the bonus
in principle He favors compensa-
ton to the soldiers and sailors who
fought in the late war but insists
the government finances are not
in shape for an expenditure on the
bonus.
Representatives of the ex-service
men know, however, that if they
lose their fight now they will have
scant chance for another year or
two to revive the issue success
fully for a deficit of $34O,0OO,O0O,
which may grow TO half billion
dollars, stares the government IN
the face for the fiscal year begin
lining on the first of next month and
ending June 80, 1923.
| FINANCES LII BAD IulAs
| Government finances are such a
complicated matter that they per
NIT of wide differences of opinion
and Interpretation. Those members
. of the senate who are fighting il
favor of an immediate bonus take {
much more roseate view of the con
dition of the treasury than do thc
officials of the treasury. The lat
, ter, together with the president, be
= lieve all effort should be concen'
: trated on funding the public deb
: wh1e the bonus advocates inSis
that the funding has been SO sue
? cessful thus far that the bonu:
t could be financed with little harm
= to the treasury's funding plans
= The dispute is largely academic, a!
it involves many psychological fac
/ tors in the marketing of investmen
t securities. Nobody will be able Il
tell accurately just how much o
an effect the passage of a bonu
!, bill would have on the funding O
e the public debt or on the govern
= ment's ability to sell short time Sc
r curities But the men on Capito
Hill who favor the bonus insis
t that their opinions are as good a
= anybody eIse's and they are deter
K mined to go ahead.
:, Battle of Words.
q The question finally will resolv
d itself into a battle of words be
e tween the president and the spon
n sors of the bonus largely on tn
e question of how the money is to b
y raised, and while the advocates @
|. a bonus feel that today they hay
: enough votes to pass the bonus owe
e Mr.. Harding's veto they are not c
= course able to calculate the psyche
e logical effect of positive statement
e from Mr.. Harding in that veto mes
: sage. For the moment Mr.. Hardin
has had his way in keeping the be
nus from being given right of wa
in the senate. 1t was thought tn
bonus forces were strong enoug
to compel immediate action The
have a majority which is sufficier
D to pass the bill when it does com
I'D for vote but Mr.. Harding's tar
, tics have raised considerable dout
as to the necessary two-thirds
pass the measure over a pres1der
!. tiaI veto. There are many change
possible between now and the tim
of the veto message, but the Sc
back which the advocates OF tt
bonus got has strengthened M
= Harding's determination to fight tt
l. passage of the measure in il
d present form.