Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-02-05
LEAN TO VIEW FUNDS
MUST COME FROM DEBT
Sale of British Bonds Guar
ah,ccd by America Fa-
vorcd as Source.
RAISE INHERITANCE
House Committee Hcnrs Estates VIII
Yield Added Revenue or
S:OO,OO0, 900
iBy Associated Press. !


WASHINGTON. Fcr. i-Rcpubli-
can House leaders are understood
Virtually 10 have abandoned the idea
"f financing the soldiers bonus h.
means OF a general saIrs tax, n nro-
'ram which has been freely discussed
with more or less favor nj the two
ends OF tho Capitol
Opposition among the majority
oneEnbcrs. mostly from the Middle and
Ear West 10 Il sales tax, is said 10
lac 80 strong as TO threaten defeat
~ such program. The alignment
against x is understood to be prac-
iicahy that which forced acceptance
~ the 30 per cent Income surtax
voted :n'o tho revenue bill by Tho
Senate
Favor" Use OF nrIti.h Debt.
Developments at further hearings
today before the House Way, and
Means Committee disclosed that in
suite OF Secretary MELONS opposition
1" Inc plan, n number OF tho msior,
- members favor tho uso or par. OF
mo proceeds from the refunded
british debt in helping TO finance tho
aojusted compensation. They hc-
ileved that this would meet with [,
greater measure OF public approval
'nan would a program lnyo,r;nr m.
raising OF the entire amour, ~
means OF special taxes.
Arguments on both .jdo. .. -.
f'esNon were heard by the commit
'ee- representative Ramseyer. Re
h"p1c'"' iowa, opposed the proposal,
arguing that suck use OF tho mopey
would be breach OF contract wi, !,
mo holders Of Liberty bonds. vino
re said. had been tod In I'm Law
adopted by Congress- that tho nro.
'eed' from the foreign debt wou,d
h- Hsed to retire tho liberty hort
'Ssaed To raise the money adv,,cnd
10 uhs debtor nations.
trF~ Foreign Hond Sale.
"'Han McFad den. OF the H,,E
ms ana Currency Committee. r,v,r,
NE financing OF tho bonu, ,bro,,.h
me sale in this country o, th, .,
"Hneu hFiti'h bonds. with the prin-
pal ana interest guaranteed by the
Nmercan government as we'll as IN,
Nr'sish government. He commended
'ha' with this double guarantee IN,
ioTns would bring higher p,t,.c
than would american government &C.
'urL>ies sold FOR the same purpose.
increased Inheritance taxes as an
"Icr means o: financing the bonus.
were advocated by Mr.. Ramseyer,
who said such taxes could not be
passed on and would not be n peo,,,v
on Initiative and enterprise. He
1hOnRnt hn
100000 from this source could be i,
creased by 100000. oeo "a year with
nut' imposing any.-haruShip. Chair
man Fordncy and some other mem
hers OF The committee apparently r.
celved this suggestion without APP
prevail. but other members indicated
sympathy with 81.
Nov that the arms conference has
approved the naval limitation treaty,
some commit e. men are considering
fhcH subject OF naval and army re-
Scction as one means OF proyidinr
Tsrsnue for The bonus. Because o.
ihes COST OF scrapping ships on the
NAYS they are not Mt all certair
shat the building appropriation car
re greatly reduced !n the mex; fiscal
edT. hut IL is their belief that with
r2lpy ships now aHoat consigned 10
iss .scrop ,ieap. the personnel can be
cut down. Sharply eTcct!ng con
n.'istabis saving.
This phase OF the situation is e1-
r@cted To hu among those 10 com,
% x: the Forthcoming bonus con
ferSnce between President Harding
sGd. House and Senate leaders