The New York herald., 1922-05-16

New York Herald Bureau,
Washington, ID. C., May is.
President Harding is now in posses
sion of complete information relating
TO the legislative proposals to finance
the bonus raid on the public Treasury.
Proponents and opponents of the
project expect he will make known
his views regarding the pending
schemes without delay, probably on
Wednesday.
After the Presidents interview with
Senator Smoot this morning Senators
and Representatives both for and
against the bonus raid agreed to call
a halt in activities concerning 1t until
the Presidents views have been
known. Both sides agree that his
decision will exercise a decisive effect
on the controversy.
Basing their opinions on the objec-
tions urged by the President against
enactment of bonus legislation at this
time unless financed by sales tax.
the prevailing impression is that he
will make known his disapproval of
the McCumber proposal and one of
the two suggestions explained to him
to-day by Senator Smoot.
Outline of Two Schemes.
The McCumber scheme provides, for
the issue of insurance certificates of
borrowing value and with an ultimate
aggregate cost 10 the country of
SO, 500. 900, 900 exclusive of interest and
administrative charges.
The project outlined to the Presi-
dent by Senator Smoot this morning
is for a paid up insurance policy with
out borrowing value at cost of
$4,000, 100000 minus the ordinary ad-
ministrative charges. No provision is
contained in either the McCumber or
Smoot propositions for raising the
revenues necessary to finance them.
Such revenues would of course have
TO be raised through some form of
taxation that would fall upon the
shoulders of the people. The Presi-
dent has repeatedly expressed the
opinion that no bonus legislation
should be passed unless Congress
proposed an acceptable way for rails
ing the money to pay TIE bill without
imposing additional and unreasonable
burdens in the way of taxation.
His objection to the modified House
bill proposed by Chairman McCumber
candidate for reeection) is recog-
nized as the most serious obstacle to
its acceptance by the executive branch
of the Government There would be
TIE greatest surprise, therefore, if the
President should make known his
willingness to sign either the McCum-
Der or Smoot bill. now before him.
Would Approve Sales Tax.
The Presidents attitude toward the
bill submitted by the Utah Senator for
a cash bonus to ex-service men
financed with the sales tax is known
to every member of Congress. There
is not the slightest question in their
minds that If Senators and Repre-
sentatives rejecting the opinions of
the agricultural section of the coun-
try would accept the sales tax to
finance the bonus bill IL would receive
the approval Of the President
The attitude of the spokesmen of
the agricultural elements in TIE coun-
try. however. is bitterly hostile to
such plan The leaders of both
houses have informed the President
that in the present state of the agri-
cultural mind sales tax project for
any purpose would be bitterly op-
posed.
With these clearly understood fea-
lures of the bonus situation indelibiy
impressed on them both proponents
and opponents of the bonus raid ex-
pect the President will turn his
thumbs down on the remaining pro-
posals placed before him by the two
groups of bonus advocates divided
over the best method Of financing tie
enterprise.
The most active supporters OF the
bonus in the Senate admit the proba-
bility Of an adverse decision regard