Evening star., 1922-01-11
FUNDuNGHI|lIlcHHD d
INTALkQ]||t'BDNus.
President Against Approval OF
Scheme Without Sure,
+, Money Raising Means.
BY DAVID LAWRENCE

PRESIDENT ftdFQlHS Will ueSiino "
give his approval to any soldier bonus
proposal which does not provide. a
sure means of raising the money. And
at the moment the President gives the
impression that it would boa mistake
to assume that enough money will be
pay the bonus.
The Presidents attitude. toward the
bonus. as revealed at the White
House. is one Of continued belief in
soldier compensation. but of reluc-
tance to associate the foreign debt
question with it. The truth of the
matter is that Mr.. Harding turned the
tables on those who had asked for
his approval of a soldier bonus bill
contingent on the allied war debt pay
ments. The President inquired how
1t was possible even to talk about
getting money from the allies when
Congress is delaying the passage of
the bill which authorizes a commits
sion of five to negotiate with foreign
governments on the payment of prin-
ciEal and interest.
Handicapped by F,aiHure-to Act.
hurry up and pass the funding. bill.
then some clear idea may be obtained
as ~ ~hether any revenues may be
exfshtad t:om the allies. Up to this
tim, oot'a single thing has been done
towNAeq fxin9sa time for the payment
of either interest or principal. No
private business would allow an i'm
menSe debt tosrun along without even
promissory note fixing the dates Of
payment.
Both the President and the secre:
tary of the Treasury have pleaded
with Congress to pass the BILL The
House has acted favorably. but the
Senate has failed to put the measure
through. The agitation for a. soldier
bonus may have the effect Of forcing
action on the funding bill, though Mr..
Harding himself Is careful to refrain
from promising approval of the bonus
bill. even if he has the power to fund
the debt.
The funding bill only authorizes ne
gotiattons. 1t doesn't insure payne ent.
Then it will become necessary for the
American commission to discuss with
the allies the assets available. In
deed, Mr.. Harding IS eager to have
this authority to negotiate before the
big economic conferences takes place
at Genoa in March.
For the time being he is withhold
ing acceptance of the invitation to
that conference because he wants to
show the business men of the United
States and the agTiculturaliStS, and
all others who look forward hope
fully to the effects on American bus
mess OF: the Genoa conference that
the United States is powerless to en-
ter the conference unless the funding
bill has passed.
Hasardous to Rely ON Paymeat.
The President let it be known ttat
he believes eventually satisfactory
funding OF the foreign debt will be
possible. He never refers to cancel
lation. He never suggests any dis
counting by America Of this indebted
ness. He does feel. however. that 1t
would be hazardous, to place, any re-
lance on the immediate flow of any
substantial revenue from the allies to
the United States sufficient at any
rate to pay a soldier bonus, the cost
of which has been vartousiy esti-
mated at upward of a billion dollars.
The United States has hesitated to-
call for interest payments in goe.
because Of the certHfp : Mse4fetfs
which a draining of BnnoHeSs eG1di
The fear is that a sudden import of,
gold would knock the bottom out of
such export trade as America has and
produce a near-panic such as was
experienced about year ago when
Europe began cancelling orders for
cotton, agricultural products and
manufactured goods.
Not long ago a British ofiicial. pro-
posed to Secretary Mellon that some
gold be shipped as payment on the
interest of the British debit. hut the
Secretary of the Treasury is quoted
hox yfv1cp SYrclyy n Vsef3
thanks"
1t may be. of course, that when the
allies and the United. States arrange.
for the funding of the debt, no gold
will be shipped, but a new issue of
bonds will be made which will be
guaranteed by the allied powers. to
the United States and which in turn
may be sold by our government at an
attractive rate Of interest IN order
to get sufficient money to pay SOL
dierl bonus. but most everybody be-
lieves. the time for such a move Is far
off, as the government finances are
not strong enough yet to stand such
a strain and probably will not be for
two or three years.
Inauence Of Solder Vote,
Meanwhile the members Of Con-
gress who are up for reelection next
fall feel they must do something
to placate the soldier vote. Mr.: Har-
ding knows the attitude of member
of Congress on the eve of reelection
and sympathizeS with the effort to
get something done. But, on the
other hand, he knows also that re-
publican sentiment generally is not
altogether pleased with the new
revenue bill. and that the demand for
lower taxation 10 still strong. It's
a question, therefore. Of pleasing one
group or class with the chance of
antagonizing the business and other
elenents of the country, who by their
contributions and votes make re-
publican victories possible.
The democrats opposed the bonus.
too. Secretary Houston of the last
administration fought it. So the
Soiiiers would have small comfort in
turning from one party to the other.
except as a protest vote. Ths PROS
poets are that Congress may act and
square itself with the electorate, but
that Mr. Harding will take the re-
sponsibtlity OF disappearing 1t, ON
the ground that a sound method for
RAISING the necessary funds will not