The Birmingham age-herald., 1922-02-17
SALES TAX OR NO .BONUSLEG|SLAT|ON,
 ADVICE OF HARDING
President Thinks It Best to Postpone the Bonus Bill Unless Tax Plan
 Adopted
Nv Associated Prcss

'
 Washington February l6.-Pay the soldiers bonus with a general sales tax or postpone the legislation, was President Hardings advice today to Congress.
 Chairman Fordney Of the House ways and means committee, and Me eumber of the Senate finance com mittee. said they did not think the bonus would be postponed but were silent as to a sales tax,
 Leaders of the agricultural bloc were outspoken, however. against this tax and threatened 10 counter with a program which would include re- enactment of the excess profits and higher income surtaxes and an increase in ieheritanee and some other such taxes This plan alse was favored by some democratic leaders
 Proponents of sales tax profess ed to be confident that because of the strong desire in both the House tnd Senate to put through the bonus bill at this session q majority of the members would come to accept this levy rather than see the bonus pro- gram defeated.
 Watchful Waiting Is Policy
 Pending more careful considera- ton of the whole problem and a possible reaction, there seeems to be disposition on all sides to move slowly. The Presidents letter, ad- dressed to Representative Fordney, was read at a joint meeting of re- publican members of the House and Senate committees dealing with the bonus question who agreed after some discussion. to leave the matter in the hands of the majority mem bers of the House committee.
 It was announced that those mem bers would meet tomorrow but 1t was indicated that the tax question would not be taken up immediate tely. officers of the American Legion will be called in first it was stated, to give their views as to Mir. Harding s suggestion that instead of extending the cash payments over two and one half years, payments be deferred un- til 'the day when we may safely ln- dertake to pay at once in full"
 Leaders generally, both republi- can and democratic, said it was too early to undertake any prediction as to whether if the issue finally came down to that, the bonus bill with a sales tax provision would be defeat ed Some thought that many Of those now opposed to a sales tax would accept it rather than vote against the bill. but asserted that it probably would be several days at least before there would be a crys- taiization of sentiment on which it would be safe to base a forecast.
 Only Commendabie Plan.
 Suggesting a sales tax "as the only commendabie plan for raising the funds, Mir. Harding said he be- lieved the American people would accept such a levy for this purpose. adding that it would distribute the cost so that it would be borne l3 all of the people and would not con- tribute added difficulties 10 the problems of readjustment.
 If Congress would not adopt such a tax, the President wrote that it would be wise to let the legislation go over until there was a situation which would justify the large out lay" Calling attention that the ad- ministration was driving for large economies; pushing the disposition of surplus war properties and other transactions under consideration, 9 which ought to prove a great relief to the federal treasury Mfr. Hard : ir.g added
 Tt is not consistent to enact leg islation in anticipation of these things. but if would be prudent plan to await the developments and l can see in such a postponement no lack of regard for the service men in whom all the American people are so genuinely interested"
 Copies of the Presidents letter were made available to the House and Senate immediately after the de- livery of the original to Representa- : tive Fordney in the early afternoon. There was brief open discussion of the communication in the Senate and tContinued on Page Two.)