The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-27
Continued from First Page.

House Ways and Means Committee
are trying to solve the perplexity.
The failure of the Fordney commit
tee to evolve a scheme that would re-
ceive the approval Of the President and
Secretary Mellon is established by the
overwhelming disapproval of 1t by the
Senate.
One of the projects resulting from
the contact OF the best minds in the
bonus groups to-day was to create a
Federal agency to lend Government
money on the insurance certificates
instead OF compelling the banks TO
freeze their credits by investing In
the "non-liquid" securities, as Treas
ury officials say lie loan certificates
would prove to be.
Another bizarre suggestion coming
out of the continuing conferences OF
bonus Senators was that the certifi-
Gates be made freely negotiable In
other words. the authors OF this
scheme would make the certificates
negotiable at pawn shops. among loan
sharks and usurers. The project was
defended by the Democratic sponsors
of 1t as "the honest way of financing
the bonus on the theory that "the
Government has no right to dictate to
the owners Of the certificates where
and how they shall raise the money TO
meet their immediate purposes
Business Presence Lacking.
The Democratic suggestion Is inter-
esting because it represents the wide
divergence of opinion among bonus
Senators who desire to win the politi-
cal support OF ex-service men. An
other feature OF it is that it discloses
deplorable absence of business presci-
ence on the part of the members or
the most important political body in
the world.
1t would be waste of time to ven
ture a prediction at the present mo-
ment as to the line of Senatorial rea-
soning which will finally triumph in
the great drama of staging the most
stupendous raid on Government
finances ever projected by Congress.
The American Legion will decide the
point.
Meantime several Senators in the
opposing and neutral groups are de-
termined that the views of the Presi-
dent. the Treasury Department and
unorganized citizens of the country
who appear to be unalterably opposed
TO the bonus shall be heard.
Senator Freinghuysen (Rep., n. J)
said to-day he would insist on the
Finance Committee, of which he is
member. consulting the views of the
Treasury officials and respecting the
attitude of the country generally
toward the bonus.
The bonus Senators on the commit
tee headed by Chairman McCumber Ga
candidate for reelection) have frowned
upon this idea on the ground that 1t
would be a waste of time to pass leg
islation which would be Objectionable
to the American Legion"
Bonus Raiders Assalled.
The bonus raiders were vigorously
attacked by Senator Dial (Dem., S. Co.
during the debate on a bill providing
pensions for Spanish american war
veterans this afternoon. The South
Carolina Senator. who is rapidly COM
ing to the front as a legislator of con-
specuous ability. rebuked the tendency
of Congress to countenance the use of
the peoples money with reckless dis
regard for their interests.
He predicted that the matter would
be taken to the courts and said that If
the judicial tribunal decided that there
was no way to check the squandering
of the peoples money by Congress
there would be an uprising and a
popular demand for a constitutional
amendment limiting the powers of
Congress in this respect.
Senator Dial went on to say IL was
not surprising the soldiers in the late
war are demanding bonus in view of
the fact that there seems to be no
limit on tie amount Congress is will
ing to pay out in pensions, whether
the applicants are needy or not.
Since have been here" he added,
"the civil war pension claims have in
creased by s65,000.0o0 per annum. AS
the veterans Of that war decrease in
numbers due to deaths the claims in
crease. Under such circumstances
how do you expect to decrease the tax
rate and bring the country back to
normally?
"The whole atmosphere here seems
to be to try and get somethina for
nothing from the Government. In
yielding to that demand we seem to
forget our debt to the people at large.
Unless somebody Eere gives considera-
ton to business and the business
mems point of view in these matters
the country will be ruined and we will
have nobody to pay the heavy taxes.
Owing 10 the heavy burdens now
imposed on the business men of the
country many Of them are at the point
of despair. / know of many who are
anxious TO close down their business.
We are doing everything within our
power to drive them to the wall. and
I do not blame them for buying tax
exempt securities and resorting to
other tricks to evade the heavy taxa
ton laws"
Opposed on General Principles.
Senator Dial said he opposed PEN
sions and bonuses on general princi-
pies and added: What are soldiers
for IL not 10 fight? Why are they in
a -. a g. lie. -