New Britain herald., 1922-02-16
Unless Congress Sees Fit To Adopt This Method, l, Harding Asks That Measure Be Tempora- rily Postponed
This Statement Leaves Sol dier Question Even More Complicated Than It Has Heretofore Been.

Washington, Feb. 16.-Prcsdcn
 Harding informed congress today h,
 considered a general sales tax tn,
 only feasible method of raising fund
 for soldier bonus.
 The executive in a letter addressed
 to Chairman Fordney of the house
 ways and means committee anG Chairman McCumber of the senate
 financial committee suggested thai
 unless congress saw fit to enact sales tax. passage of bonus legislation should be temporarily postponed.
 Text of Letter.
 T believe" the president wrote the American people will accept the levy of general sales tax to meet the proposed bonus payments and we should contribute thereby no added difficulties to the problems of read iustmcnt. If congress will not adopt the legislation go over until there is a situation which will justify the large outlay"
 Situation Complicated.
 The presidents letter was regarded generally at the capitol as leaving the bonus situation even more complicated than before. Senate and house sub day to receive and consider the White House communication.
 Declaring that the government had under consideration the disposition of surplus of war properties and other transactions which should bring great relief" to the treasury, the president said it would be wise to let the legislation go over if congress did not deem it advisable to adopt the sales tax.
 When the sales tax was discussed in the committees last week it is understood that senators were in formed that less than 100 republican votes in the house could be mustered for sales tax an method of financ- ing the adjusted com pensation. Such a tax had been considered by house leaders as possibility but virtually had been discarded.
 Text Of Letter
 The text of the presidents letter WHICH NdS duuTeSStu tO CndlTIIldn l'ordney of the house way and means committee follows:
 "In accordance with the promise made to yourself and your associates on the senate and house committees charged with the responsibility of formulating proposed bonus legisla- tion l have carefully looked into the of taxation which has been In addition thereto I have suing either short time treasury notes or long time bonds to meet the tinan- ,ial obligations which the proposed legislation will impose. It is not pos sble to commend to you either of the plans suggested.
 It continues to be my best judg- nent that any compensation legisla- ion enacted at this time ought to carry with it the provisions for rais- Ing the needed revenues and l find myself unable to suggest any com nendable plan other than that of general sales tax. Such a tax will dis ribute the cost of rewardng the ex- ervice men in such a manner that it will be borne by all the people whom ( hey served, and does not commit the !; ,overnment to class imposition of axes of the resumption of the burd- 1 ms recently repealed. the mainten- nee Of which can be justified only by { great war emergency. ,
 Tt is fully realized how great is the which confronts the con , ,rcss in solving this difficult problem am aware Of the strong sentiment n congress in favor of this adjusted compensation. l have spoken approv- ngly myself. always with the reser- l ation that the bestowal shall be ( made when it may be done without nch injury to the country as will ulify the benefits to the ex-service I non themselves which this expres- ion of gratitude Is designed 10 be- r tow. a Tt is not an agreeable thing to r lggest that action be postponed ? gain, but, frankly. I do net find my ? e)f favorable to the piecemeal pay ? lent plan, which is manifestly de- s gned to avoid embarrassment to the D 'easury. The long drawn out pay rents will not afford an effective / to the service men. K We have no serious problem in be- II ming the allotments of public lands " Id the immediate issue of paid up Ii surance. The real difficulty lies in e payment of the cash bonus. Rath-
 than provide that the maximum sh payments shall extend over ,riod of 2R years it would be stly better bestowal if we could vait the day when we may safely ,dertake to pay at once in full, so at the award may be turned to real vantage.
 as the treasury is to be He'd upon to meet more than &c., 0 ,00o. 900 of maturing obligations in e sixteen months immediately be-