Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-03-01
$l00,000,000 TO
ARM MERCHAN TMEN
Also to Provide Insurance for
Them-Text of the Flood
Bill Now before House.

Washington, Feb 8-After conferences
with democratic and republican leaders,
Chairman Flood of the House foreign af-
fairs committee. introduced late to-day a
bill authorizing the President to arm
merchant ships and use such other in
strumentalities as necessary to protect
them on the high seas and providing
for special bond issue of s1OO,OOO,00o.
The bill was referred to the committee
which will meet tomorrow morning to
consider it. At the same time the Senate
foreign relations committee will consider
the Presidents tentative draft of a
similar measure, submitted by Chairman
Stone.
The text Of the Flood bill follows:
BE it enacted by the Senate and
House of Representatives of the United
states of America in Congress assem-
bled. that the President of the United
States be and is hereby authorized and
empowered to supply merchant ships,
the property of citizens of the United
States and bearing American registry,
with defensive arms should it in his
judgemnt become necessary for him
to do so. and also with the necessary
ammunition and means of making use
of them in defense against unlawful
attack. and that he be and is hereby
authorized and empowered to employ
such other instrumentalities and
methods as amy in his Judgment and
discretion seem necessary and ade-
quate to protect such ships and the
citizens of tho United States in their
| lawful and peaceful pursuits on the
| high seas.
Section 1.-The sum of one hundred mil
lion dollars is hereby appropriated out of
any moneys in the treasury not otherwise
ident of the United States for the pur-
poses herein stated, the said sum to be
available until the first day of January.
nineteen hundred eighteen; and the Prcs-
idcnt Is authorized to transfer so much
thereof as he may deem necessary to the
bureau of war risk insurance, created by
act of Congress. approved September End.
1914 for the purpose Of insur.ng vessels,
their freight. passage moneys and car
goes aga.nct loss or damage Ly the pres
ent risks of war.
Section o-For the purpose OF meeting
the expenditures herein authorized the
secretary OF the treasury. Nnder the d.
rection of the President. is hereby author
ized to borrow on the credit of the Uni
ted states and 70 issue therefor bonds of
the United States. not exceeding in the
aggregate 800 COO 600. said bonds to be in
sucn form ard subject to such terms and
conditions as the secretary of the treas
ury may prescribe, ard to bear intercs.
ut the rae not exceeding three rer ceii-
tum per annum; provided. that such
ponds shall be sold at not less than par.
shail not carry the circulating privilege.
ana mat all citizens of the United States
shali be given an equal opportunity to
subscribe therefor. bat TO commission
shaii he allowed or paid thereon: that
pola principal and interest shall be pay
able In United States gold coin of the
present standard of value and be exempt
from All taxation and duties of the Uni
ted states as well as from taxation in any
FORM OF all State. municipal or local
authorities; that any bonds issued here
under may, under such conditions as the
secretary OF the treasury may prescribe.
DC convertible into bonds bearing "a higher
rate or interest than three per centum
II any bonds shall be issued by the Uni
ted States at a higher rate than three
per centum per annum by virtue of any
act passed on or before December thirty
hrst. nineteen hundred and eighteen.
Sectioh f-ln order to pay the
necessary expenses connected with the
said issue of bonds or any conversions
thereof sum not exceeding one fifth
OF one per centum of the amount Of
pohds herein Authorized to be issued
or winch may be converted. is hereby
appropriated out of any money in the
treasury not otherwise appropriated
10 De expended as the secretary Of the
t>A~"r~ ~av dirA4t"