Arizona republican., 1922-02-15
HARDING BALKS
At PLAN To GET
BONUS F FUNDS
BY BOND ISSUE
Thinks 1t ImpracticabIe To
Finance Measure BY Such
Means Now - Favors
Early Passage, However
A. p. Leased Wlre1

WASHINGTON, Feb. 14-Presi-
dent Harding thinks it is impracti-
cable to raise by boz issue at this
time large sum of money to finance
the soldiers bonus, ii was stated to-
day at the white house, and he is
unalterably opposed to the suggested
eight point tax program or to a re-
turn TO any of the taxes that have
been repealed.
The executive was represented as
being favorably disposed toward the
bonus legislation, and il was en-
phasized that when he appeared be-
fore the senate last July to ask that
its enactment be deferred he had not
taken position of hostility. 1t also
was stated that promises made by
Republicans in the 1920 primaries
had not been lost sight Of. but it was
pointed out that no exact time had
been fixed for the passage OF an ad-
justed compensation bill.
Must Proceed Cautiously
The attitude OF the executive, 1t
was added. had to be that of finding
sane and definite condition of the
fulfillment of the promises made on
the one hand and having regard for
restored stability on the other.
Holding that there was a question
ing determination at this time that
there was during wars responsibility
when the government could have
raised almost any sum, the president
was said TO doubt the possibility of
obtaining now through a bond issue
the sum required for the soldiers
bonus without an advance in interest
rates and the disturbing of the fin
ancial tranquility of the country.
In this connection attention was
again called that in the next Is
months the government must refund
some six and one-half billions of
dollars of pledges in the shape OF
Victory notes and certificates of in
debtedness. Secretary Mellon and
other fiscal officers of the govern
ment have taken the position that
these refunding operations would be
handicapped by any additional issue
OF bonds or short time notes In con-
nection with the soldier bonus. 1t
was said at the white house that
the Presidents view as to the bonus
would be transmitted in writing 10
the chairman Of the senate and house
committees dealing with the legis-
lation. The majority members OF
these committees met this afternoon
with the expectation that the execu-
tiye's letter might be ready for them
but after a session Of an hour men,
bers said the communication was
expected tomorrow.
May Mean Long Delay
The Presidents proposition as out
lined at the white house was given
informally to the committee mem
receipt Of the Official letter. Some
of them did say, however. that on
the basis of the Informal information
they had the bonus would be rested |
just where it did before the house
ways and means sub committee drew
up the tentative eight point tax
suggestion.
Mr.. Harding's objection " the sug-
gested bond issue and tax proposals
was regarded in some quarters as
presaging a delay in the enactment |
OF the bond legislation until a sub
sequent session of congress, but so
far as was ascertained this was not |
the interposition at the capitol.
Chairman Fordney OF the house
ways and means committee, said the !
bonus bill would be passed and added
that \ was his Judgment that the
first II the cash payments would be |
made available to the former soldiers
bv next october 1. 1t was his Inn
preston that the cash payments
would not entail the financial outlay
that some have supposed, and 10 |
support this view he called attention |
to polls taken at various OHIO posts |
of the American Legion which show
ed a large percentage of the men |
the insurance option ana !
few announcing desire for money.
Work on the legislative section OF |
the bonus bill was continued today |
by the house sub committee with the |
that 1t would be ready |
for the entire committee within a
few days. Chairman Fordney |
thought the bill probably would be !
reported to the house in ten days.