The New York herald., 1922-05-06
HARDINC'S REJECTION
OF TWO BONUS PLANS
IS EXPECTED TO-DAY
Rival Projects for Political
Raid of Treasury to Be
Submitted.
CALLED GOLD BRICKS
Neither Meets Requirement
President Stipulated in
Fordney Letter.
WARNINGS AGAIN ISSUED
McCumber Stirs Up Mares
Nest by Declaring Tariff Bill
Will Be Sidetrackcd.
WARNINGS AGAIN ISSUED
BY LOUIS sEIBoLD.

BY LOUIS sEIBOLD.
Special Dispatch to THE NEw YozK HERALD.
New York Herald Bureau.
Washington, ID. G.. May 5.
Two political plans for legalizing the
bonus raid Oh the Federal Treasury
will be placed before President Harding
tomorrow Neither will contain any
provision for financing the undertake
ing.
One plan will be based on the ne
gotiabe insurance certificate idea to
run for forty-three years and cost the
people of the country a minimum of
SO, 500, 100000 plus interest charges and
administrative expenses. which will
run the total to $4,000, 900, 900.
The other scheme contemplates the
adoption of paid up Insurance TO run
for twenty years without borrowing
capacity. 1t will cost in round num-
bers $4,000, 100000 without counting
interest and overhead expenses.
Both projects reflect the ultimate
conclusions of two groups of members
cf the Senate Finance Committee as
to the most feasible method OF obtain
ing the support OF ex-service men WHO
desire to commercialize their patriot
ism.
Neither Meets Requirements.
Neither plan meets the objections
raised by President Harding and the
officials of the Treasury Department.
Both propose the .'piecemeal' plan for
paying the political debts OF candidates
for Congress at the expense OF the tax
payers. The President has positively
expressed his opposition 10 this
method
The two groups OF Senators who
will submit their respective bonus Of
ferings likewise have ignored the con-
ditions raised by the President that
any bonus legislation seeking his ap-
proval must carry provisions for pay
ing the bill Also they have over
looked his definite statement that the
only acceptable plan for financing the
scheme would have to be based on the
sales tax.
Admitting they have not met these
objections. bonus Senators. obeying
the commands of the American Le-
gion and other bonus claimants. ex-
pressed confidence in their ability to
induce the President to accept one of
the two plans. The two ventures are
characterized by Senators who are OPP
posed to the bonus as gold bricks.
thinly gilded." They predict the Pres
ident will penetrate the veneer with
out looking a second time.
Fate of Bonus mt stake.
Upon the character of the reception
accorded the plan to be presented by
Chairman McCumber Candidate for
rce;ection) OF tho Finance Committee
and Senators Watson and Curtis, and
that sponsored by Senator Smoot, will
depend not only the fate OF the two
latest schemes born of political des-
peration, but of the whole bonus prop
osition.
In view OF his repeated statements
regarding the bonus and the condi-
tions set up by the President. there
will be the greatest amazement IL the
President should accept either. The
truth is that the sponsors for the two
schemes do not entertain much hope
that he will do so, although they vo-
cally pretend otherwise.
Senators opposed to the bonus and
those at present holding neutral po-
sition believe the President will put
an end to the frenzied agitation over
the bonus and repeat the suggestion
he made in his letter to Mr.. Fordney
that the sales tax be adopted to finance
tho raid. or all legislation relating to 1t
be postponed for the present.
Hope for End of Problem.
The greatest Importance therefore is
attached by Senator's and Representa-
tives favoring or opposing the bonus
and those who will follow tho Presi-
dent TO the White House conference
on II tomorrow. The hope is ex-
pressed that the most vexatious legls-
lative problem in many years will be
disposed OF in short order.
Aside from the comparatively small
group of Senators who have been
goaded into frenzy of apprehension
by threats of political reprisals from
bonus claimants the conviction gem
orally prevailed tonight that Presi-
dent Harding would settle the matter
within an hour after he has listened
to the arguments and political appeals
of the Senators who will place their
bonus offerings before him.
A positive statement from him that
he does not at present view with favor
any legislative proposal that will null
lfy the pledges OF his party to prac-
tice economy and retrenchment will
probably decide the ultimate fate OF
the bonus raid.
1t probably will not prevent the re-
Continued on Page -Four.