Every evening, Wilmington daily commercial., 1922-02-25
FAVOR BONUS BILL,
NO PLAN FOR REVENUE
Senate subcommittee Rejects
Proposal for Sales Tax;
Leaders Disturbed.

Washington, Feb. 25r--After voting.
8 to 2, against recommending o sales
tax as means Of paying the soldier |
bonus. the subcommittee Of tho Re /
publlcans Of the Ways and Means /
10 which the finance fea- /
ture of this problem had been refer /
red. decided yesterday in favor Of re- /
porting a Bonus bill without any /
specific revenue provision attached.
Letter the subcommittee presented
its decision TO the fun majority uiem-
bership Of the Ways and Means Com
mittee. Republican leaders urged
reconsideration of the subcomnittee's
action, but after talking over the mat
ter I'm an indefinite way and listening
to explanations by Chairman Fordncy,
who was n leading factor in the action
taken, the conservative members sue
ceeded in obtaining an adjournment
lill Tuesday without any final deois-
ion.
1t is said that the subcommittee's
reasons were not entirely satisfactory
10 some other members OF the com
mlttee. BY Tuesday the advocates OF
the sales tax expect word will come
from the white House informing the
"non-revenue raisers" that the Presi-
dent viii net approve such a measure.
II tho President relterates opposition
90 passage Of a Bonus bill now unless
/ II provides revenue through a sales
tax. then. according 90 some ezpecta-
ton, the opponents of the sales tar
are likely 10 reverse themselves.
| After President Harding was in
! formed Of the failure Of the Repubh-
cans Of the subcommittee TO take his
suggestions on the bonus matter after
they had sought them. IL became
1 known that his position regarding
bonus legislation remained unchanged.
being unalterably defined In the letter
which the President sent 10 Mr.. Ford
ney on Feb. 10. 10 was said that he
would veto any bonus bill that came
to him without providing means for
} raising the revenue, and that the only
bonus measure acceptable 70 him wa,
on that obtained money through a
sales tax.
The situation now, az interpreted
by Republican leaders, was that there
; would be no bonus legislation until
very late in this session. il at sll. Il
a bonus bin comes 20 the Senats
minus a revenue provision it cannot
under the Constitution, supply th'
lack. Republican LADDERS said tonigh
that a bonus bill that did not find thu
, revenue to pay the soldiers would b
rejected in the upper branch.
Party leaders in both House an,
Senate were surprised by the sudder
decision OF Chairman Fordney and hi
associates which was regarded az
, reversal Of policy. 1t was condenlnet
a generally as a move that might de
feat all bonus legislation at this tim
and as ANOTHER sign OF the lack 0
I party harmony.
, Mr.. Fordney and his friends were IN
. duced 20 retreat, IL was said by one O
I their number, because they had be
come convinced that farm-labor bio
a had sufficient votes in combinatio
r with the Democrats 10 prevent tn
y passage Of the Bonus bill on the line
of the Presidents recommendations
= The farm bloc leaders informed NJ
n Fordney that they would not continu
Y their opposition 70 bonus legislation.
II the sales tax was eliminated and th
n measure was presented TO the Hous
n without taxation features.
Another feature Of the new Fordne
II project TO authorize the bonus with
q out resort TO taxation is to sell Treas
g ury certificates If necessary. But bot
e these ideas are opposed by the Pres
| dent and cannot be carried out excel
h by much new legislation