The New York herald., 1922-04-20
PRESIDENT TO VETO
. BONUS unless BILL
PROVIDES REVENUE
Declares Against Bond Is
sue or Possible Use OF
Foreign Debt.
HE RESISTS PRESSURE
Tells Senate, Through Wat
son, He Will Not Play
Politics.
SALES TAX DOOR OPEN
Believed Senator's Will Draft
New Bill Along That Line
House Opposes Method.
SALES TAX DOOR OPEN
Nv LOUIS sEIBoLD.

BY LOUIS SEIBOLD.
Special Dispatch TO THE New York HERALD.
New York Herald Bureau.
Washington. ID. G.. April 10.
Promoters of the bonus raid on the
public Treasury were brought up with
round and decisive turn by Presi-
dent Harding to-day.
At conference with Senator Wat
son Ind., Rep.), one of the most in
f1uential members of the Finance
Committee, the President expressed his
disapprovai Of the $4,000. .000. 900 certifi-
cate loan bill passed by the House Of
Representatives and now in the Sen
ate committee.
Skeptics among Senators and Repre-
sentatives who have contended that
the President would shift his position
to meet political emergencies con-
| fronting candidates for Congressional
office were shown to be absolutely
inaccurate in their statements by
the declaration of the President to
| Senator Watson.
The President has not shifted his
| position, reports to the contrary not
withstanding. and even the most
ardent advocates of the bonus in the
Senate concede the improbability Of
his stand changing.
Must Provide Financing.
4 a
! In unmistakable terms the Presi-
dent informed Senator Watson that
any bonus bill which would meet his
approval must carry the means for
raising the needed revenue. He there
fore indicated his complete disapproval
of the certificate loan project passed
| by the House. which makes no pro-
vision in this respect. Further than
this the President declared impracti-
cable the suggestion OF bond issue
| to finance the bonus raid and ex-
pressed serious doubt OF the availa-
bility OF foreign debts through pend
| ing refunding processes to supply any
money for the purpose.
The impression left on the minds OF
! Senators both for and against the
bonus by Senator Watson on his re-
turn from the White House was that
the President would not hesitate to
veto the makeshift certificate loan
bill sent over by the House. The
Indiana Senator further told his bonus
associates. who anxiously waited the
outcome OF his call on the President,
that "the bonus outlook Is fraught
with grave difficulties"
| 1t developed in conversation between
| Senator Watson and his associates
that the President is resolute in his
determination TO veto any bill that
does not meet the objections raised
by him In his letter to Mr.. Fordney
and the criticisms made known to the
House leaders by Secretary Mellon.
Federal Reserve Governor Harding
and Comptroller of the Currency Girls
singer.
NoncommittaI ON Rider"
! In detailing his discussion OF the
I bonus project with the r. sident
Senator Watson said he inform I the
President of the suggestion ma, e at
! the conference of the Republican
Senators yesterday to attach rider"
TO the tariff bill providing revenue for
the bonus. He said the President did
I not express any opinion or preference
as TO the manner In which the legis-
lation should be framed. The Sena-
! tor did say the President viewed the
paid-up insurance certificate plan
which has been suggested by several
Senator's in the neutral group. as
possessing little merit.
The effect OF the information
brought by Senator Watson from the
White House was unmistakable. II
caused several OF the Senator's who
while favoring the bonus. stand ready
10 support the President. TO shift their
position. though II did not discourage
those members Of the upper house
who are determined TO put through a
bonus bill regardless OF its practical
bility and consequences to the Gov
ernment and people OF the country.
The most decisive effect OF the in
! formation conveyed by Senator Wat
son was to strengthen the position of
the Senators opposing the bonus raid
and TO complicate further the confused
opinions of its supporters. IT was con-
ceded generally by Senators that the
only hope for producing workable
bonus bill would be To discard the
House measure and frame an entirely
new project
II was natural OF course, that those
Senator's who arc anxious 10 win tho
political support OF the honus claim
ants should oppose the abandonment
OF the House bill The chief reason
urged in support OF this position was
that the House might refuse TO accept
substitute measure concocted by the
Senate.
The fate Of the House bin. however,
Continued on Page Five.