The Washington times., 1922-01-18
new LEVY
|SFAv0RED
BY HARDING
President Would Agree to Sales
Tax for Vets, Sixty Senators
Are Informed.
BY J. BART CAMPBELL.
International News Service.

'NE Anternoti0nal NeWs bcrvlcos
A sales tax. combined with q
British bond issue, Is the Admin
istration plan for financing the
soldiers bonus. it was revealed to-
day by Senator Lodge Of Massa-
chusetts, the Republican leader, and
Senator Curtis of Kansas. the Re-
publican "whip." before a confer
ence of the Republican membership
Of the Senate.
Opinions Differ.
The conference, embracing prac-
tically the entire majority member
ship of sixty in the upper chamber,
was called by Senator Lodge for the
express purpose Of considering the
pending foreign debt funding bill,
and for providing, If possible. united
Republican support to insure its
early passage, by the Senate.
1t was understood that differences
of opinion prevailed among Repub-
lican Senators participating in the
conference as to the length Of time
which would be required to float the
proposed British bond issue, and to
bring sufficient cash from the sale
of the proposed bonds in this country
to finance adjusted compensation for
ex-service men.
Senator McCumber of North Da-
kota, the new chairman of the Senate
Finance Committee, was understood
to have expressed the opinion that
In view of the Administration avow-
ed desire to start soldiers bonus
payments as soon as possible this
year, some form of taxation would
have to be found to bridge over the
gap which would exist between the
time the British bond issue may be
authorized and cash from the sale Of
the bonds may be realized.
Senator Edge Of New Jersey, in ex-
pressing his unqualified approval Of
the British bond issue proposal, esti-
mated that the bonds could be made to
bear a substantial return within q year.
Harding Favors Tax.
Several Administration spokesman
who took a leading part in the con-
ference were authoritatively repro
scented as stating that the President II
favorably inclined toward q sales tax
being employed for the purpose sug-
gested by Senator McCumber, IL IT
were found that at least a year may
elapse before q substantial return on
the proposed British bonds could be
regarded as a certainty.
Senators favoring a sales tax were
reported as urging that such a tax be
coupled with the proposed British bond
issue as a means Of not only insuring
the early financing of the soldiers
bonus and the adjustment of the Brit
fish debt, but of securing the adoption
of a sales tax as a permanent basis
Of taxation.
Senator McCumber was Of the
opinion that some form. of taxation
would probably have to be found. any
how, to finance the soldiers bonus I'M
I'll the money that might accrue from
the proposed British bond issue be-
came available, and the sales tax
advocates urged that no better form of
taxation could be found for such n
purpose than the form of taxation
which they favored.
Foreign Debt Bill.
The first step towards carrying out
the plan of linking the soldiers bonus
with the foreign debt. it was explained
by Senator Lodge, was the immediate
passage of the foreign debt funding
bill.
II was also stated that amendments
would be offered by either Senator La
Toilette of Wisconsin, or johnson OF
California, both of whom absented
themselves from the conference, to re-
quire congressional authorization for
any adjustment Of the foreign debt
which might be found necessary by
the commission of five created by the
pending bill. 80,
Early passage of the bill, in the
form desired by Republican leaders
was confidently predicted by them.
Strong opposition to the sales tax
feature of the Administrators plan
was understood to have been expressed
NV a number Of Senators, who included
members of the agricultural bloc
n was said that these Senators In.
cluded Gooding Of Idaho, McNary OF
Oregon, Lenroot of Wisconsin, Cappsr
of Kansas, Kenyon of Iowa, La Fol-
lette of Wisconsin, Borah of Idaho.
NJ = h.