Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1922-02-15
HARDING OPPOSES
SPECIAL TAXES TO.
RAISE, yANK BONUS.
p RESIDENT ANNOUNCES HlN.
SELF AGAINST ExclsES, BUT
DOES NOT OBJECT TO LEVY ON
= SALES = coNeREssMEN DELAY
TASK or FRAMING MEASURE.

Washington. Feb Ia President
Harding yesterday indirectly opened
Wide the doors for adoption O, fhe
sales tax TO provide funds for the sol.
diars' bonus.
An official white house statement
issued after cabinet meeting ar
which the bonus deadlock was dis.
cussed. expressed opposition TO every
other method Of raising the money
tor the bonus except the sales tax.
The President strongly opposed tu0
Issuance of bonds, the imposition %
the special taxes recently proposed NY
the house ways aud means committee
and the establishment Of the excess
profits tax and other taxes suggested
hy the agricultural bloc In congress
The President did not say be favored
Il sales tax, hut he excluded this meth
cd from the other forms OF taxation
specifically disapproved.
Republican leaders IN congress inn
Inediately renewed consideration a.
the sales tax Senator Smoot of Utah
and Representative BacharaCh Of New
Jersey urged adoption of the sales
levy at the joint meeting of the Re.
publican members of the senate
hnance committee and the house ways
and means committee. but 10 was do.
cided TO defer action until after tho
President has sent a letter 20 con
eress on the whole bonus problem.
The President was spending The
g.. frtf. a.H
committees adjourned until TO-DAY,
when they expect to receive his le--
ter
The Presidents statement means
either the adoption OF the sales TAX
or passage Of the bonus bill without
any financing provision included. con
gressmen believe
This means the sales tax sale
Senator Smoot. 1T must now he
either the sales tax or a bonus bill
without any financing plan. and thar
would mean big deficit, Of course
I Members of the sales tax delegation
that recently visiter Canada as the
guests Of William Randolph Hearst
and the Hearst newspapers decided
that they would wage a vigorous fight
for adoption Of the sales levy.
The house ways and means COM
mittee viii be formally asked by the
delegation to approve the sales tax
Should the committee refuse, call
for caucus of the entire Republican
membership Of the house will be is-
sued, and an effort will be made 10
have the sales tax inserted In the bill
BY the caucus.
The fight for the sales tax will be
carried TO tine floor Of. thesahouse Il
necessary. members Of the delegation
declared In the event that the sales
tax advocates are defeated in the
party caucus. q bonus bill carrying
the sales tax will be offered in tAc
house as a complete substitute for IA
measure reported by the ways ana
means committee.
Senator Smoot said yesterday that
if the bonus bill does not carry the
sales tax when it reaches the senate
from the house, he Will offer the sales
tax plan as a substitute in the senate
The Smoot plan would levy q tax Of
/ or per cent on manufacturers
sales and would specifically exempt
agriculture.
1t was stated after the cabinet meet
ing yesterday that the President and
his advisers were unable to agree
upon definite program regarding the
bonus.