Evening star., 1922-02-16

PRESIDENT Harding informed 20
sales tax the only feasible method c
The executive, in a letter add
House ways and means committee.
fit to enact a sales tax passage OF be
postponed
II believe. the President wrote,
"the American people will accept the
levy of a general sales tax to meet the
proposed bonus payments and we
should contribute thereby no added
difficulties to the problems of read
justment II Congress will not adopt
such plan it would be wise to let
the legislation go over until there IS a
situation which will justify the large
outlay" =
Postponement Might BE Wise.
Declaring that the government had
under consideration the disposition
of surplus war properties and other
transactions. which should bring
great relief to the Treasury. the
President said 1t would be wise to let
the legislation go over il Congress
did not deem 1t advisable to adopt
the sales tax.
- IL 3udy ISAlIESu no" Srcht Ia
the difficulty which confronts the
1em." the letter said. II am aware
of the strong sentiment in Congress
In favor OF this adjusted compensa-
ton. ] have spoken approvingly my
self. always with the reservation that
the bestowal shall be made when II
may be done without such injury to
the country as will nullify the bene-
fts to the ex-service men themselves
which this expression Of gratitude Is
designed to bestow."
Text Of Latter.
The letter follows:
IN eccesaapce. with tbs promise
on the Senate and House committees.
charged with the responsibility sf
formulating the proposed O0nus iegit-
!ation. l have carefully looked into
Sss sns program s..,.S Sf t1ssaticn whish has
! have made inquiry into the feasibii-
ity of issuing either sAort-time Tfeas-
ury notes or longtime bonds to meet
the financial obligations which the
proposed legislation will impose. 1t
either of the plans suggested.
1t continues to be my best judgment
that any compensation leEfslation ELL
acted at this time ought to carry
with it the provisiong for raising the
I
unable to suggest any commendob bile
plan other than that Of general
sales tax. Such a tax will distrlbute
the cost of rewarding tho ex-servtce
men In such q manner tnat II will bo
borne by all the people whom they
ernment to class imposition of taxes
or the resumption of the burdens re-
Gently repealed, the maintenance OF
which can be justified only by q great
war emergency.
Dimculty IL Realized.
1t Is fully realized how great is the
difficulty which confronts the Com
I am aware of the strong sentiment
in Congress in favor Of this adjusted
compensation. l have spoken ap-
provingly myself. always with the
reservation that the bestowaf shall
be made when 1t 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.
1t is not an agreeable thing to
again, but. frankly. T. do not fnd
myself favorable to the piecemeal
payment plan, which Is manifestly
designed to avoid embarrassment to
the Treasury. The lons-drawn-out
payments will not afford an effective
Real Prohlen IL Cash.
We have no serious problem in be-
ginning the allotments Of public
lands and the Immediate issue of
paid-up insurance. The real dini-
Guilty lies in the payment of the cash
bonus. Rather than provide that the
maximum cash payments shall ex-
tend over q period of two and one
half years. 1t would be vastly better
bestowal ii we could await the day
when we may safely undertake to pay
at once In full. so that the award
may be turned to real advantage.
Inasmuch as the Treasury Is to be
called upon to meet more than 36.-
ooO,0o0,000 of maturing obligations
in the sixteen months Immediately
before use, 1t Is not possible to recon-
mend the issue Of several hundred
millions Of additional short-time
notes. Further excessive borrowing
would likely undo all that has been
accomplished in readjusting interest
rates and establishing the financial
world, both vitality essential to the
resumption of industrial and CONNER
cial activities.
Believes People VIII A9Fee.
Granting that 1t Is not fair to op-
pose any. proposed plan without Of