The Owosso times., 1922-02-24
Republicans Struggling With
Problem of Financing the
Soldiers Bonus.
DENLY TRIES To Save NAVY
Asks Personnel of 10000 and Appro-
priation Of $3.50, 600, ,ooo-Generai
Strike of Coal Miners Impends
collins and Craig Com
ing to Agreement.
BY EDWARD w. PICKARD

|
MI EARLY everyone is in favor of
Y giving the eX-servce man a
bonus, but no one is willing to help
pay for 1t. Every plan so far pro-
posed for raising the necessary rev.
enue-estimated at S350,OOO,OOO annu-
ally for the next three years-has
aroused determined opposition. Mem
bers of the house ways and means
committee thought eight special taxes
would turn the trick, but every element
of the population that would be di-
rectly affected by them raised an i'm
mediate wall.
Republican leaders appealed to Pres
ident Harding to suggest something
feasible, and he undertook to do so on
Thursday. But what should his plan
be but the same old general sales tax
proposition which ii has been admitted
by nearly everyone cannot possibly get
through congress Because this was
his only plan, and because he also
criticized the plan Of providing for the
payments of cash bonuses in INSTALL
ments over period of two and half
years, 1t was assumed by many In
Washington that the President really
wished the bonus legislation again
postponed, though he hesitated to say
so fatty. The situation was plainly
uncomfortable for the Republicans,
and the Democrats were joyously TAX
Ing every advantage of the discomfl-
ture of their adversaries. The leaders
of the agricultural bloc in both the
house and the senate reiterated their
unqualified opposition to any kind of
a general sales tax.
Some Of the Republican leaders
strongly favored the passage Of a
house bill without any plan of financing.
They thought the necessary money
might be made available by further re-
ductiOn of appropriations for certain
departments, especially the army and
navy. Mr.. Mondell prepared state
ment to show how nearly S3OOOOO,-
900 could be saved this way. But
even that would not be sufficient, and
many congressman urged again the Is
suance of bonds. OF course the def
$500, 100000 in appropriations, could
be made up by Issuing short term GER
tificates Of Indebtedness, which Il was
asserted the market would readily alb
sOrb. Both the President and Secre-
tary Mellon declare that big bond
issue would seriously embarass the
extensive refundlng operations that
must be undertaken during the coming
year, causing an increase in interest
rates. and disturbing the Liberty bond
market. Some other government off,
cials do not agree with them.
Q ENATOR BORAH Is consistently
~ opposing the bonus because, he
says, 1t will interfere with the care
of the soldiers now undertaken by the
government through the veterans
bureau. He predicts that within ten
years the annual expenditure for dis
abled soldiers will have reached ST.
5OO,OOO,OOO, of which no one will com
plain $50 long as the appropriations
are based on the necessities and re-
quirements of the disabled soldiers"
Director Forbes Of the veterans
bureau calls attention to the fact that
the total government expenditure re-
quired for disabled soldiers for 1922
Is $51O,OO0,0OO, and thus sets forth the
ways In which the bureau Is using the
money:
Paying out $1,0O0,0O0 cash every
day, including Sunday, directly into
the hands Of the ex-service man or his
dependents In compensation allot-
ments.
Providing. without cost, hospital care
and treatment to 10000 veterans.