The Washington herald., 1922-06-14
CONGRESS DIVIDED
OVER PLAN TO TAX
BANKS FOR BONUS
Proposal Would Levy on
Profits to Provide Cash
For Soldiers. ,
COVERS 25 YEAR S
Believe s2,5OO,OOO.OOO Could
Be Raised - Only IL Per
Cent Of Earnings Allowed.

A-spropOsaI that profits of banks
he taxed to pay a cash soldier bonus
threw bonus enthusiasts OF Con-
=ress into division last night
An unofficial poll of the Senate
showed high sentiment against the
amendment to the bonas bill pro-
posed by Senator Ladd. Republican
Of North Dakota. which would pro-
vide S2.5oO,OCO.OOO for a cash bonus
by ,TzirS bank earnings
Plan In DIsfnyor.
The grOIp s-hich demands that a
provision for raising bonus revenue
h- specified in the bill-composcd
mostly Of the farm blOc'-Pro-
noJrCsd itself in favor OF the meas
ure. though il is composed Of such
a small minority that there appears
little chance Of the amendment
being passed.
Under the amendment hanks and
certain other financial partnerships
and organizations would be allowed
but IL per cent clear earnings.
Fifty per cent of the remainder
would be seized by the government
to raise money for the bonus.
Ladd believes this would be suf-
ficient TO raise S2.5OO. .OOO. 900 In
twenty five years But in order 10
make spot cash payments. Ladd pro-
vides that the Treasury Department
be authorized to issue the amount
Immediately in legal tender notes.
Notes Would BE Retired.
These notes would be gradually
retired each year as the proceeds
were received from bank taxes.
But II the sum is not sufficient
the Ladd amendment would specify
that interest on the foreign debt
he appropriated for any necessary
sum.
IL the foreign debt interest is not
available or does not prove suffi-
Cient to retire all outstanding legal
notes withi: the 25-year period.
Ladd would provide that the deficit
be taken from the government
funds OF the Treasury Department.
Ladd strongly defends this mode
OF procedure. arguing that a 12-per
cent profit is sufficient for any
banking organization. He points
TO the excess profits tax as an ex-
ample of how easily the money
could be raised in this manner.
though il would affect only the
money lenders" of the nation.
Believes Earnings Too Large.
Very few people would contend.
in view of the present economic
conditions OF the country, that
banks, banking institutions, trust
companies or banking partnerships
should be allowed more than II per
cent interest, while the producers
Of the nation are toiling and pro-
ducing at less than the cost of pro-
duction," in the opinion of Senator
Ladd. IF they make more than
that il will be hard for any one to
maintain that they should not split
such excess profits with a govern
ment that. by act of Congress
gives them a special monopoly on
the issuance of the money and
credit of this country.
This is a way In which the SOL
diers can be paid with very little
expense to the government, In
other words. we will pay the SOL
diers in about as easy manner as
we would raise interest to pay
bankers who held any bonds we
might float to raise money with
which to pay the soldiers. My
'Hi' htmtilt N lot tHe interest OF
the people. with only sufficient re-
gard for the bankers to recognize
that they are entitled to only a fair
profit for actual service performed
and that they are not super-class
10 he deified.
II can not see where the certif-
cate plan is much more than a
bread pill for the soldiers They
have asked for meat and have been
given a stone. I can see where II
can react to the general good OF
the bankers Of the country"