The New York herald., 1922-03-14
Continued from First Page.

already indicated their opposition to
1t. In addition to thls there is another
group on the committee, headed by
Representative Longworth, who favors
the adoption of the sales tax as recon-
mended by President Harding with the
alternative of postponing bonus legis-
lation. The adherents of the sales tax
have not abandoned the hope that it
will ultimately provide the basis for
any bonus bill. They regard the adop-
ton of the plan as the only solution
which may find sufficient favor to put
a bonus program through.
A still further group is made up of
Representatives affiliated with the
agricultural bloc, who have declared
war to the knife" on the sales tax
scheme.
Democratic opposition in the COM
mittee does not relate to the merits
of the bonus itself, merely to the man
ner of financing it. Mr.. Garner and
his associates in demanding the right
to offer amendments to the certificate
loan plan are influenced by the near
est approach to party policy that
obtains.
Position of Democrats.
The Democratic position is that the
money to pay the staggering cost of
the bonus, which Mr.. Mellon showed
may exceed five billions and may run
into untold billions, should be raised
by taking over the interest of the for
eign debt as a starter instead OF
applying it to the retirement Of the
Liberty bonds as planned by the Gov
ernment Another counter proposal
supported by the Democrats is that
the old time war taxes be restored to
finance the raid.
The perturbation Of Mr.. Fordney
and the other bonus members of Con-
gress has been further accentuated by
the tremendous impression made by
the Mellon analysis on the agricul-
turaI bloc in the House. The Secre-
tary's statement that the certificate
loan plan would freeze" the resources
of the banks to such an extent that
! farmers will not be able to get money
to finance the production and move
nent of their crops has caused a lot
Of uneasiness in the minds OF the
rural statesmen.
They are inclined to dissent from
the opinion OF Mr.. Fordney and the
other bonus members that the Sec
retary Is a bad hand at figgers.'
Tho charts sent to the Ways and
Means Committee by Mr.. Mellon were
too thoroughly worked out and I'M
pressively convincing to justify any
such charge.
Wherefore the agricultural states
men find themselves in dilemma
They have not fully made up their
minds Just which way they are gonns
TO lump. They would like to put
through the bonus bill to keep their
individual promises to "the soldier
bovs." except on a sales tax basis.
nop,t KNOW where They stand.
Until Senator Glass. Comptroller
Crissinger and finally Secretary Mel
Ion pointed out the disastrous conse-
ouences of the certificate loan plan
to the farming elements the agricui-
tural bloc members were whole heart
edlv for that scheme. Since the ex-
pert revelations they don't know just
where they stand. One thing Is quite
certain-they are not for the certifi-
cate loan scheme If the conclusions OF
the Treasury authorities are consid-
cred correct.
ont of the maze of contradictory
opinions there appears to be develop
ing in concrete form a decided SWING
toward the suggestion made by Presi-
dent Harding that bonus legislation
be postponed. 1t will naturally be re-
sisted bv Mr.. Fordney and his sup
porters to the end.
Their problem now is to prevent the
various groups from coming together
and defying the leadership OF Mr.. Mon
dell and Mr.. Fordney. The failure OF
the two legislative captains to make
good their prediction OF month ago
that "a bonus bill will be introduced
and passed by the House in ten days
is turning support away from them
at every significant stage OF the fight
The attitude Of the Senate, which
generally appraises the certificate loar
plan as a Quixotic enterprise, rs also
d,scouraging to the House leaders
who were really confident a month
ago that q bonus bill would be passed
by both houses and signed by the
President before the April showers.
Cold Reception Ahead.
Even a casual survey Of the Senate
nroyides convincing evidence that ths
certificate loan plan will be put in
cold storage for long time in that
body IL not summarily rejected. Even
the most ardent supporters of the
bonus in the House concede the prob.
ability OF veto at the hands OF the
President-"p probability" is the way
they put H.
There was much less confidence to-
day among the bonus advocates that
"a way will be found to bring the Pres.
Ident in line" than there was last
week. Apparently reliable advices
from Florida show that the President
is still OF the same mind as when he
wrote to Mr.. F'ordney suggesting the