The New York herald., 1922-02-13


got the money 1t issues bonds. That
is-what we should do in this case. In
FIVE years or less we will be in a bet
ter position to redeem these bonds
than we are now to pay new taxes '
Members OF both houses of Congress
are worried over the bonus question.
The reaction against the proposed
direct taxation plan to obtain the
needed funds is overwhelming, so that
the indications are the whole program
Wal be abandoned even II the bond
issue scheme is found not feasible.
The powerful agricultural blocs in
both branches of Congress have been
~tke Fordney plan OF direct taxation
abandoned.
I've do not want the public to have
the idea that we are trying to run the
whole show in Washington" said John
Il. Howard. president OF the Farm Bu-
reau Federation, who is being mentioned
as the successor to Senator Kenyon,
but our organization has gone on rec
ord. and the Presidents agricultural
conference went on record just few
weeks ago against the imposition OF any
new taxes. We hold that any new
taxes will retard the recovery OF agri-
culture. will add to unemployment and
will keep the masses in the depressing 6
situation which now makes their lives
almost unbearable.
"If there are to be any new taxes,
however, we favor the return of the ex-
cess profits tax. The present tax law
Is indefensible: even the farmers admit
Il Is Objectionable in many ways and only
i, makeshift. 1t is unjust to the indus
tries of the country because the smaller
ones pay greater ratio than the larger
ones"
Purchase of Soldier Vote.
On the heels of the movement to pay
the bonus by an issue OF Government
bonds John z. Edgerton. president OF
the National Association of Manufac-
turers. issued a statement saying:
I'VE seriously oppose all propositions
for cash appropriations from the Fed
eral Treasury to pay the bonus, or so
called adjusted compensation as being
socially unwise. an economic absurdity
and politically preposterous.
That the millions OF young men who
rallied to their country's call in it's time
OF peril can have their votes at the No
vernber election bought by paltry dole
~ ooVV OF SoVus pdyapie SoV q Quarter.
beginning some time in 1923, Is such an
insult to their intelligence and outrage
upon their sense OF decency that In my
opinion it will defeat for reelection every
member OF Congress-Senate or House
who supports this Ubiquitous measure.
1ADoe soldiers kn(-v that all sums
wSuld - quiebly dissS2ted that SIS a
month. or f~v cents o day, would not
De enough to prove ox substantial Pc
cunlary benefit. and they must realize
that billions so expended will have to
be repaid By them and the members of
their families in increased taxes and in
creased cost Of living. These funds must
be at first taken from the business inter-
ests of the country. Business recovery
and opportunities for employment will
thereby be materially delayed. as all
our people know business is now strug-
Cling under excessive burdens of tax
alton.
May Break Camers Back.
This additional burden may prove to
be the straw which breaks the industrial
camel's back
with the exception Of three States,
every State in the Union has passed Leg
islation giving to. or authorizing for.
world war veterans aid, exemptions or
benefits of some kind.
'In addition. bonus appropriations are
awaiting referendum in California, Illi-
nois, Iowa, Kansas, Montana, Oregon
and Pennsylvania.
States which have made appropria-
tions for soldier bonus payments are
these which pay into the Federal Treas
ury the larger amounts of Federal taxes.
To saddle Federal bonus debt Of bill
ions Of dollars upon the people of this
viii n
other evil effects, the result Of penalizlng
the citizens Of those heavy taxpaying
States which have made State bonus ap-
preparations.
'The interest on the foreign debt is
not now available, nor can 1t be for a
long period of time. II bonds were
issued against it. it would be indispen-
sable to their sale that they be guar
anteed by the Government OF the United
States. This would undoubtedly, lower
tho value of Liberty bonds. and 1t would
certainly embarrass the Government in
the enormous financial operations re-
quired for the funding of $500. 100000
of obligations which must be met by our
own people within the next sixteen
months.
"It Is probably not generally known
that in the supposedly prosperous year
Of 1918 the manufacturing corporations
of the country had ne. income. after
paying taxes, Of less thar SH per cent.
and that more than orc-third of the
corporations of the country In that year
Lad no net income whatever.
"Only by new taxes and ever rncrc
taxes can this stupendous proposal be
financed.
Agriculture, in which a large portion
of our people are engaged. finds its
products heavily declined. Everywhere
production and trade are struggling TO
hrlng prices 10 the roint where bu. ing
and employment may be resumed pro-
.iuction stimulated and the exchange OF
goods and services renewed. BY this
means alone can prosperity be restored.
source OF Prosperity.
prosperity is nothing but abundant
production. actively and fairly dis
tributed amongst those who produce II.
How then will the ex-service man be
helped by reaching further into the de-
pleted public pocket, which is his own
pocket as well as the pocket or his
ueighbor's family and friends. and COM
,,elllng every person. himself included,
10 add the cost of bonus TO the price
of everything which he needs or con-
sumes?
despite budget economies. the Treas
,iry most certainly faces deficit in this
and the next fiscal year. This is the
public Treasury. OF the soldier as well
as OF every other citizen. He knows