The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-17
CASH PAYMENT
PLAN OF BONUS
MAYBEDROPPED
House Ways and Means
Committee to Consider
:. Matter Today.
LEGION OPINION
TO BE SOUGHT
Members of Congress Ex-
press Variety of Views
Of Legislation.

bonus bill will be considered by
the House Ways and Means COM
mittee when IL meets today. Z.
Opinion of the American Legion
and other veterans organizations
on this and other possibilities sug-
gested by Presidents Harding's let
ter on the bonus will be sought.
The letter of the President, in
which he found himself unable to
suggest any other commendable
plan than that of a general sales
tax" forsraising revenue necessary
to pay the bonus, leaves Congress
almost as much at sea as before.
The letter was interpreted as
meaning that the President desired
the bonus bill to be still further
delayed. and IL that could not be
done. that q sales tax should be
imposed.
The suggestion of delay found
little favorable response Senator
McCumber. chairman of the FL
nance Committee, Representative
Fordney. chairman of the Ways
and Means Committee, and other
influential members OF Congress,
bill must be passed. and passed
soon. Congress would not consent
to its abandonment, or postpone
ment, they declared
Sales Tax Unpopular.
But the general sales tax is not
popular, and leaders hesitate TO
commit themselves in favor of 1t.
Uncertainty exists as to whether II
would be accepted, since the Sem
ate previously has voted IL down
by large majorities. and a poll of
the House revealed that fewer than
a hundred members viewed the
tax with favor. Further, there Is Q
desire to avoid imposition OF taxes
of any sort. a desire heightened by
the fact that this Is an election
year, and by the fact that terrific
cIamor was raised when further
taxes were recently suggested
The farm blocs'' in both cham
bers are unalterably opposed to the
sales tax. The suggestion that II
be adopted Immediately brought
threats that the fight in favor of
re-enactment of excess profits taxes
and high surtaxes would be re-
opened.
The Senate Finance Committee
Committee met hurriedly in joint
session as soon as the Presidents
letter was received. A discussion
which lasted for more than an hour
brought no agreement, and II was
decided that the committees should
meet separately and sound out the
sentiment of the respective cham
bers. Then another joint meeting
will be held this afternoon.
Other Benefits of Bill
Abandonment of the cash pay
ment feature, some members
thought. offered a way out of the
difficulties It would permit i'm
mediate issuance Of paid-up/ insur-
ance, allotment Of public lands. and
bestowal of other benefits of the
bonus bills. Cash payments could
be deferred until later, some
thought. The idea is not popular,
because II was considered bad poll
tics, and, it was thought that IL
would arouse the ire of vetersns.
But IL II were seen that the sales
tax would not be accepted, 1t might
be utilized. The Presidents letter
has effectually ended the possibil-
ity of further borrowings or the i'm
position of the proposed special
taxes
Senator Calder. of New York, in a
formal statement, openly advocated
discard of the cash payment idea.
In the present state of the ma
tfon's finances, II would in my
Judgment be a mistake to pay a
cash bonus" said Calder. "a cash
bonus, IL paid, would do little or no
good, for Ii would be distributed in
small installments over a period of
years"
Calder expressed hope veterans
would agree with this position. and
said he would favor paid-up- insur-
ance.
Senator smIoot. Of Utah. who
made repeated and Intellectual at
tempts to have the sales tax adopt
ed In the general revenue bill, was
highly pleased at Harding's recon-
mendation.
sales Tax smoot's Idea.
II have always favored a sales
tax. SO Of course I am in favor of
the Presidents suggestion" said Mr..
Smoot- "As for the possibility of
delay. I do not believe there are
enough votes to accomplish this
with the election approaching, the
majority of the members of Con-
gress will want the bonus. Nor do
/ believe that the cash payments
can be eliminated. 1 don't know
whether the sales tax can be
passed. but IL 1t is not there will
be no bonus"
Senator Edge. of New Jersey,
thought cit would be worth the
price of the bonus to get the sales
tax on the statute books as a means
OF raising revenue"
Opposition was expressed by Sena-
tor Capper. OF Kansas. leader of the
farm ploc.
Il am unalterabIy opposed to a
sales tax" said he, "and I do not
believe that the Presidents proposal
can be put through Congress. Il
would favor returning to the excess
profits tax. At the same time 1
am strongly In favor, of a bonus"
A threat to move re-enactment of
the excess profits tax and the higher
surtax rates came from Representa-
tive Frear, of Wisconsin, member
OF the Ways and Means Committee,
and one of the leading opponents
o. the sales tax He Characterised
me sales tax as q ''gold brick" levy,
and said II IL were used for the