The New York herald., 1922-04-21
BONUS SENATOR'S
AT SEA OYER RAID
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out any revenue provision and then
have the Treasury Department issue
short term certificates of Indebtedness
to carry out it's provisions This was
described. as the "honest way of giving
the bonuA
The scheme found favor despite the
unequivocal statement of the Presi-
dent that no measure falling to pro-
vide the financing of the bonus would
be acceptable to him: also in the face
of the declaration of-Secretary Mellon
that the finances of the country are
not in condition to stand any further
strain without provoking the bitter re-
sentiment of the taxpayers.
Support for Bond Plan.
The development of the short term
certificate, or rather bond plan, pretty
in the Senate. The scheme to use the
foregn debt to finance the bonus was
also resurrected from the legislative
morgue. 1t found support in most sur
prising quarters.
Senator Lodge, the Republican leader
of the Senate-and candidate for re-
election--was quoted as having ex-
pressed the opinion that the payment
Of the foreign debt could be anticipated
by the issue OF short term certificates.
When 1t was pointed out that the
Liberty loan law directed the use Of
money received from foreign obliga-
tions to the retirement of domestic
war time bonds. the Massachusetts
Senator is said to have declared that
"those laws can be amended or re-
pealed to meet the new situation"
Senator Lodge who. as said, Is
candidate for reelection, is counted as
one Of the most sympathetic advo-
Gates of the bonus proposition, but he
has not up to date proposed any plan
to finance the bonus which meets the
situation existing at the Treasury and
the White House.
The majority Of the bonus Senators
admit that under the present condi-
tions the concoction of bonus bill
acceptable to the President seems to
be a forelorn hope.
Despite this-Sact they are disposed
to GO ahead with their program by
passing the buck back to the House
to incorporate In the bill scheduled FOR
passage in the Senate a revenue pro-
vision as required by the Constitu-
tion
They will also attempt to compel
Secretary Mellon to admit when ne
appears before the Senate Finance
Committee next week that "he has not
told the full story Of the financial con-
dition OF the Government"
To Lay Aside Tariff Bill.
The efforts of some of the bonus
Senators TO devise "a practical plan"
for financing the bonus to-day were
rather more amusing tnan dignified.
Their ventures ranged from reviving
the sales tax scheme (Which the agri-
cultural bloc frowns upon) to restor-
ing the excess profits tax abolished by
Congress a year ago.
Senator McCumber candidate for
reelection, declared that the Finance
Committee, OF which he is chairman,
will frame and report a bonus bill
within a few weeks, and that "the
tariff bill will be temporarily laid aside
so that the bonus bill can be passed"
Such result is not improbable, al
though the scheme to lay aside the
tariff bill will meet with stubborn re-
sistance.
All OF the bonus Senators who are
candidates for reelection will support
II, and Ii goes without saying that
their Democratic colleagues will help
them out in accordance with the party
program of putting the Republicans
in hole"
When asked IL he intended to con-
fer with the President on the bonus
bill, Senator McCumber. who. as said,
Is a candidate for reelection, replied:
"I will take up the subject with him
either directly or indirectly"
The North Dakota Senator indicated
his acceptance OF the paraphrase OF
President Harding's views on the
bonus brought to the Capitol by Sena-
tor Watson. His bonus associates,
however, expressed the belief and hope
that Senator McCumber will be able
TO modify the objections raised by the
President in his letter TO Mr.. Fordney
and in his conversation with Senator
Watson.
Senators who think they understand
the President pretty thoroughly are
convinced that Senator McCumber will
fail in this undertaking.
The meeting OF the Finance Commit
tee to take up the bonus was aban-
doned to-day for the second time. No
date for the Inauguration of the hear
ings which Senator McCumber an
nounced would be held has been fixed
The North Dakota Senator said he ex-
pected to call meeting eariv next
week. at which the bonus bill will be
discussed from all angles.
CARDINAL IN PORT TODAY