Evening star., 1922-02-20
Bonus Question Hangs
on Source of Funds as
Problem Grows Bigger
BY DAVID LAWRENCE.

The bonus problem gets bigger and
bigger. Mere negatives from the
executive end Of the government fail
to stem the tide Of sentiment on Capt.
tol Hill for some kind Of a bonus. The
democrats, who are not displeased
over the political discontinue of the
republicans, are telling tho legion men
that If the republicans really wanted
to pass q bonus and pay 1t they
could.
But where would the money be OBJ
tanned? It's here the comple1ity of
the financial problem OF the govern
ment affords opportunity for all sorts
of schemes. One democratic senator
told the writer today. for instance,
that the British government was
ready and able to pay part of its
and was also able to pay interest and
a part of the sum borrowed from
American banking concerns before
the United States entered the war
in 1917. He insisted that back Of
determination of these banking in
terests to get their money before the
American government received any
thing from England.
Rumors Are Revived.
This kind Of argument II hard to
trace down. The Anglo-French loan
fioated In the United States before the
war amounted to $5o0.000.0o0. The in
terest payments have been regularly
met. If any sums beyond that are
owed to American munition Arms the
Treasury hasn't the figures. Some
estimates run as high as $5,000,O00.- =
900. but the statistics cannot be veri:
m hna HaA
these rymore in the last few days
because Of the statements from
French officials that France probably
would not be able to pay its debt to
the United States at any time.
private firms shall receive from the
allies the money owed them ahead of
any payments on the American gov
ernment's debt 10 something the fund
ing commission to be appointed by
President Harding will have to thresh
out with the allies. This commission
consists Of the Secretary Of the Treas
ury and two members Of the cabinet,
as well as a representative Of the
Senate and House.
Certainly it looks now as If the
work Of this funding commission
will be subjected to more scrutiny
than anybody imagined when 1t was
first proposed. The chances are its
work will be as carefully and closely
watched as II 1t were commission
negotiating vital treaty: While it
declined to promise to use any funds
received from allied payments as a
basis for paying the soldier bonus,
the reason given was simply that no
one knew at the moment how much
was Forthcoming. II The plan. there
actnent Of a bill providing for the
bonus II accepted, the measure will
crop up again just as soon as there
are any available funds for many
source.
May Use Bonus ~ Lever.
The only money due /. the United
States government aside from taxation
and import duties is interest and prin-
cipal on foreign loans. The allies thus
far have believed the United States
would not press for payment The de-
mands Of the soldiers for bonus may
become a leverage behind which the
American debt commission will operate
In its efforts to persuade the allies that
repudiaion or cancellation Of the debt
is unthinkable.
Opinion Is. Of course, divided as to
whether 1t would be just to use the
proceeds from the allied debt to pay q
bonus. The original law whereby the
that the first moneys received from
the allies should go toward the pay
ment Of interest on liberty bonds
This viewpoint has recently been
expressed at the White House, too,
But even granting that the proceeds
from the allied payments are applied
to pay interest on liberty bonds, the
advocates Of q bonus insist that the
United States government will then
have available from direct taxation
the sums which now are being raised
thing like $s00.00o,000 a year. II the
allied payments reduce that amount.
for example. by $3oo,o00,000 annually,
there will be an equivalent sum
available from direct taxation where-
with the bonus might be paid.
End Not In Sight.
The end Of the bonus problem 10
not in sight Schemes galore are
fourishing IN the gossip Of congress
sional cloakrooms. President Harding
stands committed to the payment of
4 bonus soma time. He insists that
he has hitherto favored 1t, but that
he did not believe last August
or this year the right time to burden
the Treasury with 1t. He holds ont
hope for the future ana promises
faithfully to sign bonus bill II the
means Of payment are found. The
financial wixards Of Capitol Hill are
Il d not unlikely that when the Brit.
ish actually begin paying interest on
fAeit debit Some OF that fund viii bp
|uI6a directly OR Indirectly - q '&SSfS
fog bohu1 pAymenta
eCuuxsnhk f11aA IS