New-York tribune., 1922-02-03
AK
Plan Framed
BY Mellon
ID Measure Is TO Be Voted.
1rcasuryChief Purposes
Special Leyics onTot,ac-
60 and Business Papers

f''' ~ - tpHVf y " ISUfEUiON RErCrn
WASHINGTON. Feb > Secretary
Mellon Of the Treasury Department
told tho House Ways and Mems Com
mltt"e to-day that if Congress pur-
posed TO vote soldiers bonus the
money would have to be raised from in
creased first and second class postage
stamps. higher taxes on tobacco and
/ documents and lcvies against au.ono-
bilea and gasoline. He onposcd a sales
tax or revival Of the excess profits tax.
l'e insisted that paying a bonus from
interest payments on the foreign debt
should not be considered Althouch so
per cent of tho money duo the Fedora,
rcasury was colIcctabc. he added. i,
was probicmatcal when it would be
available. EEe opposed the floating on
the American market Of foreign bonds
accepted on the debt, as their sa,o
would be too costly.
Pressed by the committee for infor.
nation on possible now sources Of
revenue. Mr. Mellon outlined a new
.aSatlon program which would raise
S'oo'ooo, 600 Of the S425. 900. 900 he esti
mates would be needed for bonus INV
'nonfs Tor tho first year following the
authorization ''s Wv
Melons Tax Proposals
Nhlo denouncing further imposi-
tons. he said funds for the veterans
Couid be raised through:
IN increase Of I cent on tirst-c)ass
postage, which would add $4,000 900
TO governmental receipts
increasing secondclass postage to
raise $50 100000 year.
flacIng further tax ON cigarcttos
OF 20 cents Oh a thousand and IA;
tax on other tobaccos of 2 cents .
pound. These would bring in about
$50, 900 ,OG0.
increasing documentary stamp tax
TO raise another $4,000 900.
A lax Of 2 cents on bank checks
$4,000. 900. N''' N''''
A license tax of 90 cents on auto-
mobile horsepower for another slOO
100000. '0''
Secretary Mellon would offer no fur.
ther suggestions as to how the Sl25.
ooo,oo which would still be needed
might be brought into the Treasury
but IN discussions with committee mem.
bers he stated that tax Of 3 cents OF,
, gasoline would make up this deficit
rresh nope was given to vets and to
AT least some advocates Of the bonus
whom Secretary Mellon admitted to the
committee that tax on light wines
end beers was virtually the only one
which would not seriously disturb
economic conditions He said how
ever. that he did not believe it would
pc practicable. The statement was
elected from him by questions by Req
rcscntativc John Garner. Of Texas.
More Conferences Planned
Republican leaders on the Ways and
Means Committee and on the Senate
Finance Committee have already held
several informal conferences in an CT
fort to stra ghtcn out the difficulty
over the raising Of funds to meet the
bonus. These leaders have talked the
matter over with President Harding to
some extent and it was disclosed to-
night would have other conferences
with tho President and also among
themselves in an attempt to reach 8
solution. 1t was reported to-day that
4 formal conference Of Ways and
Means and Finance Committee Repub-
licans with the President would soon
be arranged, but it was denied there
was any arrangement thus far for a
formal meeting.
Representative Hamilton Fish jr.. of
Garrison. n. Y, an cx-service member,
urged upon the committee reduction Of
the maximum Tor overseas service from
$625, as proposed to $500. This would
be agreeable to the veterans and would
bring the total cost down considerably
he said.
Major Genera! p G.. Harris. adjutant
general Of the army. and B,igadicr
General II. NJ. Lord. chief Of finance of
the army, who also appeared to-day,
estimated that the cost of administrat-
ing the bonus act would be about
81 800 600, or about 81 for every vet
cran paid. Their estimate was cxclu-
sivc Of the navy and Marine Corps, of
course. General Harris said the cost
for his Office alone would be about
Sl25O 900