The Washington herald., 1922-02-17
The President on the Bonus.

TT WOULD be difficult for the most contentious
to pick a quarrel with President Harding on
the score of his letter to Representative Ford
ney, chairman Of the Ways and Means Committee
of the House, in reference to bonus for world
soldiers and the method for raising the funds
necessary where straight cash. is elected as the
recompense.
Not only does the communication point out the
difficulties besetting two money-procurng plans
but advocates revenue-producing device which
should rest more easily upon the taxpayers should
crs than any other the present economic horizon.
Granting that it is not fair to oppose any pro-
posed plan without offering substitute Mr. Hard
ing acts Immediately in accordance with this vital
principle of constructive criticism and suggests
the Alternative sales tax. This impost is as
nearly nonirritant is possible and has the ad
ditional virtue of reducing evasions in payment to
minimum.
These are parlous times in finances, national or
international, because of the tremendous wartime
drains on Europe and America and the disruption
of the economic machinery. The eight plans for
special taxation laid by Congressional conferees
are opposed by the President inapplicable. The
issuance of short time notes, he logically contends,
would be very bad move, not only because the
Treasury is to be called upon to meet more than
S6ooo,oooooo of maturing obligations in the next
sixteen months but because further excessive boz
rowing would likely undo all that has been &C
conpshed in rcadusting interest rates and stabiliz
ing the financial world"
"a The sales tax has not only the practical advan-
tage of universal applicability, but, Mr.. Harding
points out, possesses the sentimental advantage of
distributing the cost of rewardng former service
men "in such a manner that it will be borne by all
the people whom they served"
One of the best features of the Executives
letter his declarations that rather than provide for
maximum cash payments to extend a period
of two and one-half years. it would be better to
await the day when may safely undertake to
pay in full, that the award may be turned to
real advantage" That removes the subject, so far
as he is concerned, entirely from the realm of poll
tics, and stamps his ideas the bonus as con-
cefned with the business and mmediacy of the
former service mems claims
Congress now has before it the succinct pro-
posals of the President and his advisers for per-
forming duty not to be evaded and to be delayed
in performance only if the bestowal OF cash
bounty would at this date react disastrously upon
the nation at large, including the very men and
women it is desired to benefit. The end of dis
cussion which has been marked by some acrimony
and recrimination is in sight.
The Herald, with the President voices the SEN
timent it has held all along concerning the bonus
sentiment of approval of the principle and desire
that the practical move be made soon as possible
1t realizes, at the tme that the straight cash
bonus is only one aspect of the matter and be-
lieves that the best thought among the former
service men is in favor of compensation in home
stead lands, with easyterm provisions for borrow
ing money to develop these, and of psid-up insur-
ance.