The New York herald., 1922-04-20
HARDING TO VETO Be .JUS
UNLESS BILL FINANCES 1T

President" In consequence many Re-
publican Senator's who yesterday were
| inclined 10 favor the bonus have In
grenched themselves back Of the Presi-
dent and will support him. They have
indicated their determination to insist
the Finance Committee produce q
bonus bill which will stand the test Of
the White House, the Treasury and
public sentiment regardless Of the eff
feet on the political fortunes OF indi-
vidual Senators who have attached
more Importance 10 the influence or
the American Legion than the facts
warrant.
In discussing the latest develop
ments In the bonus muddle this after
noon Senator Watson expressed the
opinion that the only two possible
methods left for framing bonus bill
are to work out an amendment to the
tariff bill to provide the needed rev.
enue, or adopt the sales tax scheme
as suggested by the President. Be-
cause OF It's far reaching and menac-
ing effect the proposal to load down
the tariff bill with a revenue measure
for the bonus met with little favor this
afternoon.
AS far as the sales tax scheme is
concerned Senators on both sides ex-
pressed the opinion that II could not
be done by the Senate because or the
constitutional provision requiring that
all revenue producing measures origi-
nate in the House.
The conviction is growing among
Senators that after hopeless maneu-
vering the Senate Finance Committee
will be compelled to turn to the sales
tax. Every Senator knows that such
bill will meet the Presidents ap-
proval: likewise every Senator knows
the President will probably veto any
bonus bill containing other methods
for pay the bonus.
Chance OF Sales Tax.
A sales tax feature in the bonus Dill
would stand more chance of getting
through the Senate than any other
scheme suggested at the present time,
despite the opposition of the agricul-
tural bloc; per contra. il would stand
very little chance OF getting through
the House, where a large number OF
members are unalterably opposed to
this form of taxation for any pur-
pose
Senator Watson. who will favor a
bonus bill that will stand the test
at the White House. made no secret
of his anxiety over the muddle in
which the disturbing legislative prof.
ect has become involved. Personally
he feels the Senate should hold back
until the refunding commission has
made report Of the chances for col
iecting the foreign debts, notably that
due from Great Britain.
Treasury officials, who are organiz-
ing the commission to refund the for
eign debt, hold out very little hope
that any money from foreign quarters
will be available for a long time to
come. The same officials also point
out that money received from for
eign obligations must be devoted to
redemption OF the Victory and Liberty
bonds. Realization OF this fact
strengthens the idea among Republi-
can Senator's that the sales tax ulti-
mately will emerge from the delibera-
tions of the Finance Committee.
The bonus Senators, who admit they
are engulfcd in a maze of conflicting
ambitions and emotions will make
an attemp. to override objections from
the White House and other quarters.
They were engaged in attempting to
coordinate their forces this afternoon,
but with little success.
Their plan is to bring every inf1u-
ence possible to bear upon the Finance
Committee to produce some sort OF a
bonus bill within three or four weeks.
to set the tariff bill aside and jam"
the bonus measure through the Sem
! ate.