The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-02-16


President Harding informed CON
gress today lac considered gen
eral salea tax the only fcnsibi
method OF raising funds for a
soldiers bonus.
The executive In lcitch ad-
dressed to Chairman fordn-y OF
the house ways and means coiu-
mittce and Chairman McCumber
OF the senate financial committee
suggested that unless congress
saw flt to enact sales tax.
passage OF bonus legislation should
be temporarily postponed.
Il believe the president wroto.
the American people viii accept
the levy OF general sales taN Go
meet the proposed bonus pay
ments ana We should contribute
thereby no added difficulties to
the problem Of rc-adJuStmeut lf
congress Will not adopt such "a
plan, Il would be wise 60 let the
legislation go over until there BE- %
situation which win Justify the
large outlay.
Declaring that the government
had under consideration the dis
position uf surplus war properties
and other transactions which
should bring great RELIEF To the
treasury, the president said Il
would be wise 20 let tho leg station
go over II ConFrrs. ana not deem
II advisable to adopt the saics
tax.
Compii'nics situation.
The presidents letter was te-
D gardcd generally AZ tho capitol ns
leaving the bonus situation cvon
more complicated than before.
Senate and house subcommittee
were to meet late IN the day TO
receive ana cons dor tne white
house communication &. .-s.
When the sales tnx was discuss
cd IN the sub-committees lHsi
~ssis,-ft was understood that sem
ators were informed that loss than
100 republican votes IN the HOUSE
could be mustered fDr a snlrs tax
~ a method Of financing the al
Justcd compensntion. Such tax
had been considered hy house
leaders a. a possibility. but
virtually had been discarded
Tho text of the president letter
which was addressed To- Chairman
fordhcy OF the house ways and
means committee follows.
In accordance with she prSmi.e
made to yourself ana your hsso-
ciates on the senute and hou.,
committees. charged with the re-.
Hp"hsihlliiy OF formulating pro,
posed bonus legislation. hnN,
carefully looked into IN. prorr. rt
Of taxation which has been .ur
gvSt"d. IN sddition thereto
have mnde inquiry into the fensi'
biliiy of issuing either short tim,
treasury notes or long time bond,
80 meet the financial obligation,
which the proposed legislation y d
impose. II is not pose b.c tu com.
mond To you either OF the PLAN
suggested
sales Tax De-t TIan.
II continues to be- my best iudg.
meni that any compensation legiS
lution enacted at ihis time oughl
tu carry with Il the pruvisiuns Tot
raising the needed revenues. nnl
| iiud myself unable To Huggos
any commrnduhie plan other thar
that of general sales tax Sucl
"a tax Will distribute the Gust oI
rrwnrding the cN-scrVicc men IL
such a manner that IL Will D..
borne hy all tho people whom
they served and does not commi
the government 10 class imposi
tiun of taxes or the resumption -
the burdens recently repealed. tn
maintenance Of which can III
Justified only by great wa
emergency.
"lt II fully realized how grea
IL the difficulty which confront
the congress In sulving this diifi
cult problem. am aware of tn
strong sentiment In congress n
favor Of this adjusted compens.a
ton ! have spoken approvingi
myself. always with the reservu
ton that the bestowal shall b
made when II may be done with
out such injury 10 the country a
VII nudity the benefits to the *
service men themselves whic
this expression of gratitude is dc
signed to hestow
1T II not an agreeable thing /
suggest that action be- propose
again. hut frankly I do not TN
myself favorable to the piece -mes
payment plan, which II mnnifesti