The Washington herald., 1922-02-17
Cash PAYMENT
PLAN OF BONUS
MAY BE DROPPED
House Ways and Means
Committee to Consider
Matter Today.
centlnssa tter Fac one.

continsed fyom Page one.
bonus, the soldier would have to
pay his own award
"A bonus bill win pass the House
IL an open discussion Is held. but II
viii not contain a consumption
tax" declared Frear.
BnI to BE Enacted.
"A bonus bill will be enacted at
this session Of Congress-" declared
Chairman Fordney.
He declined. however. to predict
whether 1t viii be paid with a sales
tax
Senator BoTah, of Idaho, opponent
of the bonus. laughed when asked
about the Presidents letter.
We can now sit back and watch
Developments" said Borah. Then
We can open fire IL Ine proponents
of a bonus are ever able to reach
an agreement on the sales tax.
II am against the bonus no matter
how 1t is to be paid" said Senator
Glass, of Virginia. former Secretary
Of the Treasury. The sales tax
would require the thrifty former
soldier to pay not only his own
bonus, but also the bonus of his less
thrifty comrade-"
Senator Curtis. Of Kansas. Repub-
tican whip. and Representative Mon
= He'll, of Wyoming, Republican lead
sr. declined to comment.
The attitude Of the minority was
shown in a statement issued joint
~ by Representative Garner. Of
Texas, ranking Democrat on the
Ways and Means Committee. and
Representative Garrett, Of Tennes-
see, Democratic leader.
There Is every reason to believe
that from the very beginning there
vas a fixed purpose and a distinct
understanding among the Republic
an leaders that a situation should
be brought about whereby the bonus
would be paid with q sales tax or
there would be no bonus" they said.
Eight-Point Plan n Feeler.
The eight-point plan Of taxation,
they charged. was put forth as
-feeler."
THE Republicans realized It
would bring immediate protest from
persons who could promptly visual
lie the burdens that would thereby
be imposed The sales tax burden
cannot be fully realized until people
begin to POI 1t. hence protests will
not begin coming at once. and. after
II shall have once been adopted. 1t
will then be too late to protest.
There has been from the begin
ming a purpose upon the part Of the
Republicans to engraft the sales tax
system upon the country, SO that
there may be a gradual reduction
OF taxes upon wealth"
Insurance Payment.
Representative Fitzgerald. of
Ohio, one Of the former service
men in the House. suggested to
Chairman Fordney that the insur-
ance certificates provided in the
bonus bill be made. payable at the
end Of five years. instead of at the
end of twenty years, as the bill
now provides, IL the cash payment
feature Is to be eliminated. 4
The sales tax, in the opinion Of
Representative johnson, of North
Dakota, another veteran, has little
chance of passage in the House.
1T would not muster a hundred
votes" johnson declared. TT would
be as well to talk OF raising $780,
100000 for the railroads through a
sales tax as to raise the bonus
funds in that way"
johnson, Fitzgerald. and i've
other acknowledgement Ar
entz, Fish. Reece. Scott and Wood
rufr-presented a letter to Chair
man Fordney advocating passage
of the bonus without inclusion Of
a tax provision.
The Treasury has issued annu-
ally since 1918 over a billion in
short-time certificates. which the
banks have absorbed promptly and
eagerly" said the letter. The
Treasury Department can issue
$500, 100000 in short-time certifi-
Gates and the banks will absorb
them without affecting the eco
nomic stability of the country"
The letter pointed out economies
in the army and navy bills and in
other measures which II was
thought would provide revenue
needed foT~the bonus. 1t would be
unwise. the letter argued. to bur-
den the present generation with
further taxes In predicting pay
ment of the British debt 1t was
pointed out that Great Britain had
paid large sums as adjusted COM
-, g0lAfara