The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-13
Congress Checks Problem Up
to Pres. Harding.
President Waits for Meeting of
His Associates.
BLOC MAY HAVE SOLUTION
Agricultural Senators Want Ex-
cess Profits Tax Again.
Short or Long Term Bonds All
Up to Mellon.

Washington, Feb. 13.-Republican
leaders of the senate and house were
depending today upon President Hard
ing to pull them out of the muddle
in which they are floundering in trying
to find a way to raise money for a
soldiers bonus.
Further consideration of the pro-
posed bonus tax program framed by
the house ways and means committee
was suspended pending a expected
decision by the president as to whether
81 term government bonds may be
employed instead of direct taxation
to finance the veterans compensation.
Will Wait for Cabinet.
1t was also learned that the presi-
dent probably would defer his decision
until after the regular meeting of his
cabinet tomorrow, when it is consid-
cred proba BILE that he will go over the
entire bonus situation with the cabinet
members and seek their advice as to
what course he should pursue.
Congress struggles to determine
upon a bonus tax scheme which will
be agreea BILE at the same time to the
administration and the people who will
have to put up the money.
One of the most important develop
ments was the plan of the agricultural
bloc to propose the re-enactment of
the excess profits tax to help
straighten out the tax muddle which
is holding up the bonus bill.
Bloc to the Rescue?
Senators identified with the "bloc"
declared that it was estimated that
$500, 100000, or much more than
enough to take care of the initial in
stallments of the soldiers bonus would
be available if the excess profit tax,
repealed by the new revenue law, were
re- established.
On the other hand, the "bloc" is set
against a sales tax, as well as against
what its members describe as the
poor mans taxes Incorporated in the
bonus program of Republican mem
bers of the house ways and means
committee to which Republicans of
the senate finance committee have re-
fused to agree.
Smoot- Fights Taxes.
Senator Smoot is prepared to wage
another determined fight against any
further tax burdens being imposed
upon business. He would oppose re-
enactment of the excess profits tax
just as he is opposing the proposal of
the Republican majority of the ways
and means committee for an increase
tax on capital stock and the undis-
tributed profits of corporations.
The special joint committee of the
senate finance and the house ways
and means ommittee-Senators Nc
Cumber and Smoot and Representa-
tives Longworth and Copley-was in
an apparent deadlock when it went
into session today.
Bonds Are Considered.
1t was learned that the proposed
bond issue was discussed by the presi-
dent in telephone conversation he
had today with Chairman Fordney, of
the house ways and means committee.
1t was stated that the president called
Fordney up to tell him that he still
had the matter under advisement and
would render a decision as soon as
possible after he had conferred with
Secretary Mellon.
Fordney was said to have informed
the president that there was a grow
ing sentiment in congress in favor of
the proposed tax program being re-
placed by hort term treasury certifi-
Gates of Indebtedness, 100000, 900
worth to be issued in each quarter
until the bonus had been provided for.