The Washington times., 1922-05-07
HARDING FIRM
AGAINST BONUS
WITHOUT TAXES
Advises Congress to Bear in
Mind Reaction Which Is
Claimed by Opponents.
BY j. BART CAMPBELL,
international News Seryic-.

The soldiers bonus situation in
the Senate was tied last night in
knots so tightly drawn that ad-
ministration senators declared II
was impossible to foretell how or
when IL would be Strengthened out.
Following n conference between
President Harding and Senator
Lodge. the Republican leader. and
Senators McCumber, Watson. and
Curtis, OF the Senate Finance Com.
mittee. at the White House yes.
terday. II was disclosed that the
President was not only unfavorable
to the proposed McCumbar substi.
tute for the House bill. but that
he was still insistent that Congress
must find some means for financing
the bonus.
President Senses Opposition.
While the President promised to
reserve final Judgment on the Nc
Cumber bill. and to give careful con
sideratiOn to IL and the arious
other bonus proposals before him. II
was Understood that he had frankly
informed his visitors that there were
two sides to the question" and that
in his judgment. Congress should
keep in mind the reaction which the
bonus opponents believed had set In
against II.
1t was reported that the Presiden.
had spoken plainly and positively to
Senator Lodge and his associates
regarding all Of the aspects OF the
situation, and IL was understood that
at a cloak room conference, which
they subsequently held with a mum.
ber OF their Republican colleagues.
II was generally conceded that there
had been little. II any. real change in
the situation since the ouse passed a
bonus bill on March "a
The President IL said to have told
his callers that publis opinion gen
orally. and not political exigencies.'
should govern whatever course the
Republicans pursued regarding the
bonus and that Senator McCumber
had suggested that lit might be
we'll for the Senate to wait until
July before passing on the bonus.
/ as by that time public opinion might
have crystalized on the subject
No Final Decision
II was said. however. that no def
mite conclusions were reached. and
that the President had announced
that he would send for the Senate
leaders after he had further op-
portunity 10 study the different
angles OF the proposed bonus legis.
lation.
He was reported 10 have expressed
the wish that Senator fenroot. Of
Wisconsin, and other Republican
leaders not members OF the Senate
Finance Committee should partici.
pate in the next conference he had
on the subject.
one question in which the Presi.
dent was said to have displayed denp
interest was the possibility of the
| sales tax being employed to finance
the bonus.
He VISA frankly informed by his
callers. II was stated. that the posi-.
hility was remote. and that a canvass
OF the situation in Congress had rc.
vealed a majority opposed to the en-.
actment OF such a tax at this ses.
sion.
Senator Smoot. OF Utah, who sub.
mitted his bonus plan for a paid up
twenty-year endowment insuranc =
/ policy to the President several days
ago. announced later that the Sen.
ate would probably be given an
| opportunity to vote on the sales tax. .
despite what the President had been
told.
Sales Tax Possibility.
Smoot said that II IL was Senator
McCumber's intention to press his
! bill upon the Senate. that he would
offer his own plan as a substitute for
il. II his Substitute was voted
down. and its insurance plan. with
out any borrowing or cash pro.
visionsins, rejected. Smoot addeo. n.
would say to the Senate: Having
| insisted upon a cash provision, 7
shall now offer a method for pro-
viding the cash" and then propose n
sales tax.
That would certainly give the
Senate an opprtunitv at least to vot,
on the sales tax" Smoot concluded