Great Falls tribune., 1922-02-22
CANADA s PLAN
Of SALES TAX IS.
URCEO|N BONUS
Field Narrows Down to
That, Bonds or Treas
ury Certificates.
Congressman Frear Of
Opinion EconomiesOf-
fer Means to unds.

Washington. Feb. 21.-The' seven
republicans Of the house ways anG
. means committee, who are charged
with solving the problem of finan-
cling the soldiers bonus. expect to get
down to brass tacks Wednesday
Chairman Fordney said after the com
mitteemen had had another general
discussion of the whole question with
Secretary Mellon.
The treasury secretary was heard be-
hind closed doors, but he was under
stood to have taken substantially the
same position that he did at the open
hearings two weeks ago, when he re
iterated his opposition to a bonus at
this time, but declared that if such
legislation was to be passed, it should
be financed by sales or some other
form of taxation.
Mellon For Sales Tax
Asked what the treasury would do
if congress passed a bonus. bill as q
Mr.. Mellon was said to have replied
that the amount would be paid by is
suing short term certificates. He op-
posed this form of financing, however.
on the ground that it might affect the
tificates due in 1923.
Some members of the committee
quoted the secretary as saying in sub
stance. that as between a sales tax
or bond issue for the bonus he would
recommend the former.
Members of the subcommittee
would not anticipate, committee ac-
ton but the general belief at the
capitol continued to be that some form
of sales or manufacturers tax would
be recommended. 1t was pointed out
in some quarters that with President
Harding opposed to both the original
tax program suggested and 10 the
issue of bonds. the field had been
narrowed to sales tax or the draft
ing of measure that would be a
general charge on the treasury.
Sure Against Harding
This last plan is supported by some
republican leaders of the house and
also by those who are leading the op-
position to sales tax. Representa-
tive Frear, Wisconsin, declared in
formal statement that he believed he
spoke the sentiment of "a hundred re-
publican members Of the house to the
effect that a sales tax will be opposed
or any rule seeking to impose it on
the members" He explained that his
was based on the fact
that 20 republicans had signed peti-
ton against any sales tax and that
many others would sign.
Nearly all Of these 100 members
are in favor of bonus bill" said Mr.
1rear. "and in favor of having it passed
the same as the bill was reported to
he senate, leaving the treasury to
finance any immediate demands, esti-
mated at approximately $500. O.OO0, 600
Turing the coming year. by the issuance
1f certificates which will be covered
~ the foreign loans.
This does not take into consider
alton any economies that may be put
nto force"
Points to canada's Example
Urging adoption Of sales tax sim
lar to that in force in Canada. Rep
'esentative Volk of New York. sent an
,pen letter to Chairman Fordpey ask |
ng that the subcommittee hear him
N the question. He said that if OPP
ion of how the Canadian law would |
work in this country, it was his judg-
nent that the subcommittee would ia 4
,orably indorse this plan of raising
'Onus revenue.
1T seems most unfortunate" he |
dded. that so many conscientious and |
veil meaning members of the house. |
hough lacking understanding Of this
1ost beneficial legislation, will rush to
nut half baked ideas into print and |
ircularize members of the house with
and misleading state
lents