Evening journal., 1922-05-08
HARDING
To KILL BONUS
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y CONTINUED From First Page.)
2 est surprise II the reply which he Is
I TO make to the plea that he approve
the McCumber bill submitted to him
is other than a firm declaration that
it does not merit executive indorse
ment on several grounds.
The failure OF Mr.. McCumber and
his associates to provide a practical
source OF revenue, the proposed
drain on the banks through the op-
Grafton OF the certificate loan plan
and the effect on the business and
taxpayers are some OF the objections
which the President enumerated in
his conference with Senators Nc
Cumber, Lodge, Watson and Curtis
at the White House Saturday.
The President and Secretary Mel
Ion now are engaged in studying the
McCumber proposal. II is quite pos
sible that the President will make
known his attitude on not only the
McCumber and Smoot suggestions
but the entire bonus project today
Before doing so he will confer with
Senator Smoot regarding the paid
up insurance plan which the Utah
Senator believes could be adopted
with less injury than the McCumber
proposal.
Senator Smoot said he had not re-
duced his paid-up insurance GER
tificate scheme to legislative form.
| He does not think he will present It
to the Finance Committee, but will
reserve 1t for submission TO the SEN
ate as a substitute for the McCum-
ber measure when it comes before
that body.
Senator Smoot's scheme. while
supported by a number OF his Re
publican colleagues on the Finance
Committee and in the main body, Is
not regarded with favor by the Of
ficials OF the American Legion and
other bonus propagandists because
il does not contemplate the paymen
of money down as provided in thu
McCumber bill.
The Utah Senator has no definite
engagement with the President. He
said he would await the Presidents
| convenience and take with him to
the White House figures prepared
by Treasury and other experts to
prove the feasibility OF the paid-up
insurance method.
Mr.. McCumber and the other
bonus Senators on the Finance Com
mittee rejected the Smoot proposal
out OF hand the other day because
OF the positive declaration OF the
American Legion officials that they
would not sanction any bonus legis-
lation which did not provide for i'm
mediate cash to ex-sefvice men en-
titled TO less than fifty dollars.
Mr.. McCumber frankly admitted
that his bill was framed to comply
with every demand of the American
Legion. Political leaders and men,
bers Of Congress who have their
eyes glued on the White House be-
ieve the President will inform SEN
ator Smoot that, while his paid-up
insurance scheme will presumably
INVOLVE less hardship to the country
han the McCumber plan. It does not l
meet the objections repeatedly made /
Known at the White House to all /
'onus suggestions offered to date.
Declaring his unalterable opposi-
ion to the McCumber scheme. SEN
Ltor Smoot said he would oppose
my bonus bill that did not carry a
eVenue feature or that was not
'ased on the sales tax system. The
Utah Senator is the father of the
'aies tax project for general revenue
purposes.
The President has approved of
the sales tax as the only feasible
hethod to finance the bonus. He so
1old MS senatorial callers. Tbair
teply was that the overwbelr,tr,,
majority OF members OF tbo +,,.s
houses was against the sales tav 80
any purpose. SAVES TAX Tor
a'lihs IN his efforts to o,,+at,
IIesloential sanction for his nsid ~
insurance certificate plan. sena4a,
Smott Will try to have the Me-,
Der Dill amended by the Senate, =.
reaches that body-by providing TO-
the payment Of cash bonuses i'm
medlately with the proceeds from a
sales tax There is not the slightest
doubt that this suggestion would he
beaten in the present state OF the
| Congressional mind.
While bonus Senators generallv
admit the possibility of an unfavor-
able executive decision regarding the
/ McCumber and Smoot certificates
I plans, a few of the more ardent ad-
vocates persist in clinging to the
forlorn hope that the President fin
ally will heed their cries for political
help and suggest a way to win votes
for them. Most of the bonus Sena-
tors, however, do not cling to this
optimistic rainbow.
Just what they will do II the Pres
idential opinion is as expected is
problematic. They will not give up
the fight even though every rational
and irrational bonus scheme has
been fully triedout and found want
ing. They assert they will be able
to recruit votes enough on the DEM
ocratic side to force a roll call on the |
bonus to show they are entitled to |
he support of the American Legion |
o which they concede great political |
pswers.