The New York herald., 1922-01-25

paymentes by foreign government. as
well as any proceeds of sale. to the re-
tirement OF outstanding Liberty bonds,
about SO, 900. 100000 OF which were is
sued in the first instance TO provide Tor
the advance to foreign governments.
Interest collected on the foreign obli-
cations should likewise so to provide
for tho interest on Liberty bonds. and
ii has been the Treasury's plan in the
funding to adjust the dates and amounts
of the interest payments as nearly as
may be to the interest payments on our
own bonds.
I'm any event, il is clear that If the
proceeds of the foreign obligations
should be applied to different purposes
the Government of the United States
to that extent would have to provide for
payment of the principal and interest
of the Liberty bonds from other sources,
which means that the people would
have to pay taxes for this purpose that
would otherwise be unnecessary. The
plan to use the foreign obligations to
pay soldiers bonus therefore would
still leave this burden on the shoulders
OF the American taxpayer.
"I have made this extended analysis
of the countrys financial position and
of the Treasurys plans and prospects
for 1922 and 1928 in order that the Con-
gress may have before 1T in definlte
form the facts as to what financial
consequences the soldiers bonus would
entail and what added burdens it would
inevitably place upon the country.
"I am sending copy OF this letter to
Senator McCumber for the information
Of the Committee on Finance OF the
Senate"
simmons Offers Amendment.
Bonus action in the Senate came at
the end OF a days debate in opposition
to the bill to fund the allied war debt
owed this country. Senator simmons
IN. C.) offered an amendment providing
that the interest go toward payment or
q bonus. In the event that the interest
IL not sufficient to compensate the sol
Giers then provision is made for the sale
of as many of the converted bonds as
may be needed for that purpose.
In thus coupling the soldier bonus
with the allied funding bill Senator SIM
mons runs counter to the plans of the
Republican leaders, who announced some
time ago their intention first to dispose
% the funding bill and then take UP the
bonus bill.
The Simmons measure provides for the
five options contained in the measure
sponsored by Senator McCumber Is. d.,
which has the approval Of the American
Legion.
Ignores Republican Plan.
In forcing the issue the Democrats
evidently plan to embarrass the majority
party, although it seems certain that the
Simmons amendment will be defeated
When it is voted upon in the Senate, as
the Republican leaders agree with Presi-
dent Harding that the scheme is inn
practicable and has many disadvantages
II not insurmountable obstacles.
The plan TO provide for the bonus for
the first year or so by sales tax on
some specified items until it is certain
that the interest on the foreign debt will
meet the requirements, seems to be IA
yored by the Republican leaders.
Republican leaders announce to-day
that they expect passage of the funding
bill tomorrow or Thursday despite the
earnest protests being registered from
the Democratic side. The Republican
leaders are confident that many of the
minority party will vote for the measure
and there will be few, if any, defections
on the majority side.
After passage of the funding bill it is
possible that the Four Power treaty will
come before the Senate for considera-
tion. Senator Curtis (Kan.). the Re-
publican whip, said he had no definite
information as to when the treaties be-
ing framed at the arms conference will
come before the Senate, but he indicated
that the Senate would be ready for their
consideration soon after the funding bill
is out of the. way, as it will be some