New-York tribune., 1922-02-26
Thirty House Members
Pledge Vote to Proposal
to Use Foreign Interest
in Giving Veterans Cash
Sl25. .OOO,O Due
y. ;. ON June ]
Letter TO I'rcar Demands
Bill Be Passed Without
Any Delay in Congress

From 7hr Yfituuc's Washington surecu
WASHINGTON, Feb. 25 With the
sales tax plan apparently in its death
'nfoes as revenue measure for sol
dlcr bonus, the agricultural croup's
special organization, which was LARGELY
responsible for the Ways and Means
Sub committees action Yesterday.
turned its support to day squarolv be-
h'nd the proposal 10 use interest pay
'ncnts OF the foreign debts for meet
ing tho cash feature Of the bill.
thirty members, headed by Repre.
sentative James A. Frcar. Of Wiscon-
sin, Republican member Of the Ways
and Means Committee, representing al
most dozen agrarian states, sent a
letter 10 Chairman l'ordney commend
ing the diacardiug of the sales tax and
pledging their support to the foreign
debt bonds plan.
our action on yesterday. supported
by members of the sub-committee. in
dllSscardd,ng any sa cs taN on the bonus
Dill VIII receive the hearty support of
members OF Congress gencrallv." said
the letter. I'VE believe the sub-com-
mlttec vote Of to against such a
tax is = close index of House sonti~
mcnt OF the subject.
"A sa)cs tax would pcnolizo every
oA-soldler and compel him to pav
toward has own mcager bonus. Nine
hundred thousand .obless oN-soldicrs
would be obliged Immediately to paw
consumption taxes under any sales tax
law.
Opposed 10 Tax Burden
"A proposed sales tax would shit;
the greater part of half billion-dollar
tax burden ON to 90 per cent of the
people who now make only bare
living
A salcs tan law swept the conscrva-
l'Vc Party out o. power last December
in Canada and it would do some swccn-
ing here ncNt fall. If passed
mo sales tar law could get through h
the House ard Senate in less than
ninety days if passed at all. Ninety
days more would be required to secure
a clerical force to put the law in oper-
alton, thus taking until September or
October of this year.
"Congrcssmsn Longworth is author
ltY for The statement that when British
bonds arc received in June or July
next these eau be used with approval
OF the President to finance the bonus
for several months before any sales tax
funds would be available.
Semi annual interest on this debt
amounting To sl25, 900 900 has been
voted in The British budget and is
understood viii be collcctibc by June
ncNt.
The use or bonds Will remove a
grossly unjust proposal, prevent polti-
ca ovorturning of Congress and Will be
Just to the eX-soldiers who saved for us
these foreign debts. 'nne bonus should
be passed without any obnoxious tax,
and should be passed without delay.
We are with YOU on this propositions
Sound Out Harding
II is known that there has been a
passive sentiment in the Ways and
Means Committee along this line for
several weeks. The feeling with most
members ON this subject, though not
outspokcn or in the least organized, has
been that it might al least be we'll to
hesitate for u short time or long
enough to get genuine indication Of
whether or not tho work of the Forci gn
Debt Funding Commission can be
Looked 20 for hcsp IN the bonus prob
lom. There is no index, however, Of
what would happen in tho committee
should tho matter be placed squarely
before it as proposition to be
voted on
Members OF both Senate and House
have sounded out President Harding
privately on the question. and accord
inc to them his position = that of
being favorable TO using foreign bonds
sent here in payment on the debts,
provided the plan could be arranged
with the complete acquiescencc Of the
members Of the funding commission
Representatives Nicholas Longworth. of
Ohio. member OF the Ways and
Means Committee. said few days ago
that he understands that to be the
Pre- esidcnt's attitude. On the other
hand. there arc some in Congress who
claim Mr. Harding would not hesitate
to use the veto should that plan be
placed in tho bonus bill
Legion Answers Referendum
The American Legion, in a reply to-
day to. the figures given out yesterday
by the United States Chamber of Com
mercc on its referendum on the bonus
secs in them "victory for tho cXservice
men" and a "hat failure" for the
point Of view Of the chamber. John
Thomas Taylor, vice chairman of the
American Legion executive committee
is the author of the reply.
"Thc national organization Of the
last two years TO influence its con
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