The Columbia evening Missourian. [volume] (Columbia, Mo.) 1920-1923, 1922-01-30
Democrats Want Measure to
Go Through in Order to
Bring Republicans
Into Disfavor.
POLITICS CLOUD ISSUE
Harding Will Not Sign the
Measure Until He Sees
an Adequate Way
to Finance 1t.
BY Dawn LAWRENCE.
Copyrighi, 1927

WASHINGTON, Jan. 30.-Congress
determined 10 enact a bonus bill. Tn
situation is truly alarming for Il, com
prehensive plan has yet been offered b,
anybody whereby the funds can be RAISED
without adding to the cost of living an,
the already numerous burdens undei
which American business is struggling.
Senator MeCumber. chairman of the
Finance Committee, favors a sales ia,
Tor the firs, year and expects the bonu.
10 be financed during the second veal
cut OF the proceeds Of the payments ol
Interest by the Allies on the war debts
Chairman Fordney Of the House Ways
and Means Committee has more or less
the same idea.
The truth Of the matter is nobody be-
heves any money will be forthcoming
from the Allies during the second year
and members Of Congress know perfectly
well that by Law any proceeds from the
Allies musJ go toward paying The prin-
cipal and interest on Liberty Bonds. But
the gossip is that if the American peo-
pie are told that 4 sales tax is To be
enacted for only one year. the new
burden will be easier to impose. Then
when the sales tax is working and the
people have become accustomed to the
sales tax and it becomes evident that
no money can be- expected from the Al
lies, a simple resolution extending the
sales tax indefinitely would be adopted.
The sales tax would be imposed on
about twenty-four articles, including
clothing. foodstuffs and manufactured
products. II will be paid at the source
by the manufacturer or producer and the
consumer will feel it in increased prices
Tor the necessities of life. Thus the
soldier who gets the bonus will be able
TO buy much less for his money than
he can now without the bonus.
The Treasury is afraid Of the bonus
afraid that it will react so unfayorahly |
on business as to cause greater shrink
age in tax receipts than is apparent at
present and that entirely aside from the
necessity Of keeping sales tax for pay
ment on the soldier bonus. more revenue
will have TO be collected to make up
.a.eficiencies in other parts Of the revenue
law.
The Democrats in Congress are for a
bonus. too. They are praying that the
will enact the sales tax for
they proclaim il enthusiastically as the
best way they know Of to regain power in
Congress. The Democrats are egging
the Republicans on by openly adyocai-
ing bonus and by advocating a direct
appropriation from the Treasury and the
sale Of bonds.
Congress is at the moment afraid Of the
soldier vote. 1t is larger and considered
more influential than the labor vote Of
I'D. Nothing so formidable has arisen
except possibly the agricultural vote.
And there seems to be some kind Of an
between the agricultural
bloc and the friends Of the bonus. The
revival of bonus agitation comes with the ,
recession of Senator McCumber Of North |
Dakota as chairman of the Finance Com
ni,tee. President Harding had to go to
congress las, summer to squelch McCum- /,
1er's revolt from the party program and {
he big question now is whether the Pres
dent will stick by the position Of his ,
Of the Treasury or whether he
will surrender his convictions to a poli
ical congress 1t probably will be the 4
urning point Of his administration. He
las told callers that until ways are pro- h
ided to raise the money he will no, sign
boDas bill. The ways are being pro- \
ided-additional taxation directly upon h
he consumer. Talk Of a presidential
eto grows but there are as many who 4
hink the President will bow to congress
5 believe he will offer successful resist.
nee.