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Show CONGRESS ASKED' FOR SALES TAX PRESIDENT HARDING URGES SALES TAX AS METHOD FOR PROVIDING BONUS Executive Believes American People Will Accept Levy for Veterans And Thereby Not Burden Readjustment Washington. President Harding Informed In-formed congress Thursday he considered consid-ered a general sales tax the only feasible feas-ible method of raising funds for a soldiers' sol-diers' bonus. The text of the president's letter follows fol-lows : "In accordance with the promise made to yourself and your associates on the senate and house committees, charged with the responsibility of formulating for-mulating proposed bonus legislation, I have carefully looked into the program of taxation which has been suggested. In addition thereto, I have made inquiry in-quiry into the feasibility of issuing either short-time treasury notes or long-time bonds to meet he financial obligations which the proposed legislation legis-lation will Impose. It is not possible t command to you either of the plans suggested. "It is fully realized how great Is the difficulty which confronts the congress in solving this difficult problem. prob-lem. I am aware the strong sentiment senti-ment In congress is In favor of this adjusted ad-justed compensation. I have spoken approvingly myself, always with the reservation that the bestowal shall be made when it may be done without such injury to the country as will nul lify the benefits to the ex-service men themselves which this expression of gratitude is designed to bestow. "Inasmuch as the treasury Is to be called upon to meet more" than 56,000,-000,000 56,000,-000,000 of maturing obligations In the sixteen months immediately before us, It Is not possible to recommend the issue of several hundred millions of additional ad-ditional short time notes. Further ex-1 cesslve borrowings would likely undo all that has been accomplished in readjusting re-adjusting Interest rates and stabilizing stabiliz-ing the financial world, both vitally essential to the resumption of industrial indus-trial and commercial activities. "Granting that It is not fair to oppose op-pose any proposed plan without offering of-fering a substitute, let me repeat that I believe the American people will accept ac-cept the levy of a general sales tax to meet the proposed bonus payments and we should contribute therby, no added difficulties to the problems of readjustment. "I take It that the ex-service men themselves are no less concerned than others about the restoration of business busi-ness and the return to nbundant employment. em-ployment. Those of their wounded or sick comrades who were impaired by their war service, are being cared for with the most liberal generosity the nation can bestow. There are here and there exceptional cases of neglect and attending complaint, but we are seeking them out and correcting with all possible speed. It has not been possible pos-sible to meet all the demands for special spec-ial hospitalization but we are building to that end, without counting the cost. We are expending four hundred million mil-lion dollars a year In compensation, hospitalization and rehabilitation. These things are recited to reassure you that such delay as will enable congress to act In prudence for the common good, will have no suggestion of unmindfulness or Ingratitlude." |