The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-17
MUCH OPPOSITION
IS SHOWN AGAINST
PLAN OF HARDING
Leaders of Agricultural Block
Threaten to Place Burden
on Income Surtaxes.
DISPOSITION ON ALL
SIDES TO MOVE SLOWLY
If Such a Tax Is Not inaugural
ed President Suggests Hold
ing Up Legislation.
fHx rhs A..oeIa,ed Press,

WASHINGTON, Feb. lb.-Pay the
soldiers bonus with general sales
tax or postpone the legislation. was
President Harding's advice today to
congress.
Chairman Fordney of the house ways
and means committee and McCumber
Of the senate finance committee said
they did not think the bonus would be
postponed, but were silent as to a
sales tax.
Leaders OF the agricultural blocs
were outspoken, however, against this
tax and threatened to counter with a
program which would include re-en-
actmont of the excess profits and high
or income surtaxes and an increase in
inheritance and some other such taxes.
This plan also was favored by some
democratic leaders.
Proponents of q sales tax professed
TO be confident that because of the
strong desire In both the house and
senate TO put through the bonus bill
al this session a majority OF the mem
bers would come to accept this levy
rather than see the bonus program
defeated.
Pending further reaction from the
country, there seemed to be a disposi-
ton on all sides to move slowly. The
presidents letter, addressed to Repre-
sentative Fordney. was read at a
Joint meeting of republican members
OF the house and senate committees
dealing with the bonus question, who
agreed, after some discussion, TO leave
the matter in the hands Of the, majority
members OF the house committed
In suggesting a general sales tax as
''the only commendable plan OF rails
ing funds. Mr. Harding said he be-
licvea the American people would ac-
cept such a levy for this purpose. add
ing that it would distribute the cost
so that Il would be borne by all OF the
people and would not contribute added
difficulties to the problems OF read
justment.
If congress would not adopt such a
tax. the president wrote that IL would
be wise to let the legislation go over
until there was n situation which
would justify the large outlay Calling
attention that the administration was
driving for large economies" pushing
the disposition OF surplus war property
and IL has other transactions under
consideration which ought to prove a
great relief TO the federal treasury,
Mr.. Harding added:
''It is not consistent TO enact legis-
lation in anticipation of these things,
but 1t would be a prudent plan TO
await the developments, and ] can see
in such n postponement people who are
so genuinely interested.
Copies of President Harding's letter
were made available to the house and
senate Immediately after the delivery
OF the original 10 Representative Ford
ney in the early afternoon. There was
brief open discussion Of the communi-
cation in the senate and none in the
house, but 1t was the chief topic OF
eonversation in the cloak rooms Of
both houses.
Republican leaders generally withheld
comment, but Representative Garrett,
Tennessee, tho democratic leader in
tho house, and Representative Garner
OF Texas. ranking democrat on the
house ways and means committee, is
sued a formal statement in they as
serted there has been from the be-
ginning a purpose upon the part OF
the republicans TO engraft the sales
lax system upon the country. so that
there may be gradual reduction of
the taxes on wealth"
Leaders generally. both republican
and democratic, said il was too early
TO undertake any prediction as to
whether. IL the issue finally came down
20 that, tho bonus bill with sales tax
provision would be defeated.