Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1922-02-24
SALES TAX FOR
BONUS HARDING.
President Believes the People
viii Accept the Proposed
Levy.
IT'S EITHER THAT OR DELAY
Executives Suggestion in Letter Adj
dressed to Chairman Fordney Re-
garded by Leaders as Signal
for Postponement of Action.

for Postponement Of Action.
Washington, Feb. 10. - President
Harding informed congress he consid-
cred general sales tax the only feas-
ible method Of raising funds for sol
diers' bonus.
The Executive, in letter addressed
to Chairman Fordney Of the house
ways and means committee, suggested
that unless congress saw fit to enact a
sales tax, passage of bonus legislation
should be temporarily postponed.
When the sales tax was discussed in
the subcommittee last week it was I'M
derstoOd that senators were Informed
that less than 100 Republican votes in
the house could be mustered for a
sales tax. as a method Of financing
the adjusted compensation. Such
tax had been considered by house
leaders as a possibility, but virtually
had been discarded.
The text of the Presidents letter
was as follows:
I'm accordance with the promise
made to yourself and your assistants
on the senate and house committees,
charged with the responsibility of
formulating proposed bonus legisla-
ton, l have carefully looked into the
program Of taxation which has been
suggested. In addition thereto, have
made inquiry into the feasibility Of
issuing either short-time treasury
notes or longtime bonds to meet the
financial obligations which the pro-
posed legislation will impose. 1t is
not possible to commend to you either
Of the plans suggested
sit continues to be my best judg-
ment that any compensation legisla-
ton enacted at this time ought to
carry with it the provisions for raising
the needed revenues, and find myself
unable to suggest any commendable
plan other than that of a general sales
tax. Such tax will distribute the
cost of rewarding the ex-service men
in such a manner that it will be borne
by all the people whom they served,
and does not commit the government
ito class imposition OF taxes or the re-
sumption Of the burdens recently re-
pealed.
''It is fully realized how great is the
difficulty which confronts the congress
In solving this difficult problem. am
aware Of the strong sentiment In con-
gress In favor of this adjusted COM
pensation. I have spoken approvingIy
myself, always with the reservation
that the bestowal shall be made when
At may be done without such injury to
the country as will nullify the benefits
to the ex-service men themselves
which this expression of gratitude is
designed to bestow.
''It is not an agreeable thing to sug-
gest that action be postponed again,
but, frankly, do not find myself IA
vorable to the acknowledgement
plan, which is manifestly designed to
avoid embarrassment to the treasury.
The long-drawn-out payments will not
afford an effective helpfulness to the
service men.
eve have no serious problem In be-
ginning the allotments Of public lands
and the immediate issue of paid-up In
surance. The real difficulty lies In the
payment of the cash bonus. Rather
than provide that the maximum cash
payments shall extend over a period
of two and one-half years, it would be
a vastly better bestowal If we could
await the day when we may safely I'M
dertake to pay at once in full, so that
the award may be turned to real ad-
vantage.
"nasmuch as the treasury is to be
called upon to meet more than $6,OOO,-
100000 Of maturing obligations in the
16 months Immediately before us, it is
not possible to recommend the issue
of several hundred millions Of addi-
ftional short-time notes. Further ex-
tcessive borrowings would likely undo
all that has been accomplished in
stabilizing the financial world
'I take it that the ex-service men
themselves are no less concerned than
Others about the restoration Of bust
mess and the return to abundant en-
,ployment. Those Of their wounded or
sick comrades who were impaired by
their war service are being cared for
with the most liberal generosity the
nation can bestow. There are here
and there exceptional cases of neglect
and attending complaint, but we are
seeking them out and correcting them
with all possible speed. 1t has not
been possible to meet all the demands
for special disqualification, but we are
building to that end without counting
the cost"