The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-01-12
Administration Leaders Would
Use Foreign Debt Interest.
Propose Four Billion Dollar
Issue of Securities.
TO BEAR U. S. GUARANTEE
Would Tend to Stabilize Eco
nomic Conditions.
Harding's Plan for Sales Tax
May Be Abandoned.


Washington, Jan. 12.-Four billion
dollars worth of British government
bonds, underwritten by the United
the soldiers bonus if the present plan
of administration leaders decided up
on today, is carried out
Administration leaders are under
stood to be prepared to go before the
country with such a plan intended at
once to take care of adjusted compen-
sation for American ex-service men
and the British Indebtedness to the
United States.
Ready Market Here.
It is proposed that four billion dol
lars worth of British government Sc
curities guaranteed by the United
States government, will find ready
market in this country if offered for
general sales and will lead to an early
and speedy solution of the difficulties
confronting the administration rela-
tive to the soldiers bonus and the for
eign debt.
AS a practical business proposition,
administration leaders believe the plan
will meet with popular approval.
Negotiations between the American
and British governments relative 10
the new plan for satisfactory read
justment of the British debt are said
to have been started since the begin
ming of the present armament confer
ence.
1t is pointed out that the value OF
British bonds, underwritten by the
United States, could not be overesu-
mated and that if they were placed
on sale they would have a tendency to
bring about a marked improvement in
economic and financial conditions
generally both here and abroad.
Must BE Campaign Issue.
1t is also explained that the present
plan for the linking of soldier bonus
with the refunding of the foreign debt
at the conference which took place
Saturday night between President
Harding, Secretary of War Weeks and
Attorney General Daugherty on one
hand and Republican leaders of con-
gress, who includes Senator McCumbeT
of North Dakota, the new chairman
of the senate finance committee; Rep
resentative Madden of Illinois, chair
man of the house appropriations
committee, and Representative Ford
ney of Michigan, chairman of the
house ways and means committee on
| the other.
Republican Chairman John 7
! Adams took leading part in the con-
7 ference at which it was agreed that
the issue presented by the soldiers
bonus and the foreign debts must be
met by the Republican party in the
coming congressional campaign in a
way that would prove satisfactory to
the American people.
Would Provide Bonus.
IF it were to be pointed out to the
American people, it was suggested
that the American government is pre-
pared to enter into a financial ar
rangement whereby four billion dol
lars worth of bonds. guaranteed by
two wealthiest nations of the entire
world, are to be offered for sale as a
means of overlooking one of the main
obstacles in the way of world prosper
, ity, there could hardly be any reason
able objection to such a plan.
While the president and his advis-
crs first favored a sales or some other
form of a tax as a means of financing
, the soldiers bonus. it was finally
agreed that the practical method OF
meeting the issue would be acceptance
of the proposal that Great Britain S
Indebtedness to this country be turned
into bonds. which, underwritten by
the United States, would be sure to
provide all necessary funds to finance
whatever ex-service mems adjusted
compensation may have to be proyid-
ed for.
The rate Tentatively decided upon for
/ the bonus is $1.75 a day for each sol
dier. It is estimated that fully 72 per
cent of those eligible for the compen-
sation will accept the cash bonus
which would consume practically all
of the four billion dollars raised thru
the British bond issues