The Birmingham age-herald., 1923-11-14
MELLON PLAN. HAS COOLIDGE. IN BAD HOLE:
 Faces Split Either With His Secretary Of The Treasury Or With Congress Over The Bonus Question
 BUSINESS IN FAVOR OF THE SECRETARY'S REPORT President Says He Would Carry Out Harding Policies, And Late President Would Not Sign Bonus Bill

WASHINGTON, Nov. 1s.-The tax reduction, anti-bonus program pre- sented by Secretary of the Treasury sauarely between the devil and the deep blue sea.
 Coolidge is up against the ques ton Of breaking either with his own party in Congress or with his Secre tary of the Treasury. He must de- eide whether he will indorse the Mel lon program and please the business world generally, or reject it and please the politicians who are up for reelection and want the bonus as a vote-eatcher.
 The Mellon program, put out as an administration feeler three weeks in advance of Coolidge's message to Congress, has stirred up a babel of approval and condemnation. The re- action is so divergent that President Coolidge, sitting in his study here, is having some difficulty in making out just what the voice of the peo- pie is saying.
 The business world generally is saying that the proposed tax reduc- tions are fine. They would take a burden off business, bring capital out of tax-exempt securities, and back
  ness likes the attached proviso that these reductions are contingent upon rejection of the soldier bonus. Busi- ness has never favored the bonus and intends to make hard fight against it in Congress.
 But the politicians-especially the bulk of those who are up for re- election next year--have already privately resolved that they must carry back a soldier bonus to their constituents. Most Of them are com mitted to it. They object to beNng asked by the administration to fore go this great political boon. Fur thermore. the progressives object to Melons proposals for reducing the surtaxes from 50 per cent maxi mum down to 25. They have been agitating to increase rather than
 At the White House Tuesday, an au thorized spokesman said the Presl dent had no comment to make on the Mellon program. The President wants to wait and see what devel- ops. He regards Mellons sugges- tions as very interesting and believes they may pave the way toward ful- filling the hope of the country for substantially reduced tax burdens.
 Coolidge has previously said that he would carry out the Harding poll cies, and Harding twice vetoed the bonus bill because congress talled to provide means of raising the necessary money.
 Melons letter has stirred up more interest than any political incident in months. Telegrams, letters, pe- titions and personal emissaries are beginning to show up at the White House. These are so varied in their content that they do not help the President in reaching decision. Protest Is equally vehement against reducing high surtaxes, and against denying the soldiers their bonus. But there also is no lack of approval oI the Mellon program
 After watching the reaction to the Mellon letter for two days, President Coolidge probably realizes that he IS in for trouble either way he moves.
 SAYS BONUS IS POSSIBLE
 WASHINGTON, Nov. 13.-Nuisance taxes can be repealed and the levies on earned incomes reduced without irnpairing the ability of the govern ment to finance soldier bonus, In the opinion of Senator Jones, of New Mexico. a democrat.
 Tt would be quite helpful to Con eress if the great Secretary of the Treasury, in considering the question of the bonus or adjusted compensa- ton, should devote his intelligence to finding out how to do it. instead of persistently trying to find out how not to do it." Jones said.