The Washington times., 1917-04-11
HOUSE WILL VOTE
FRIDAY ON BONDS
Huge FinancingMeasure Passes
Committee BY a Unanimous

bill-the most important and far
financial measure ever re-
ported by any legislative body In the
world-was voted out today BY the
House COMMITTEES on Ways and
Means without q partisan division or
vote.
The bill will be considered and
passed in the House Friday.
Issuance Of hve billions In bonds
and two billions In oneyear certii-
Gates of Indebtedness, which are vir-
tualIy short-term bonds, is author
lied in the bill
President Wilson and Secretary
McAdoo are given unrestricted power
to lend three billion dollars to for
eign governments on the "ohliga-
tions" Of those governfnents There
is not mandate as to the securities
which the President may purchase
with part of the proceeds of the
United States bond issue. He may
take the obligations OF any or all Of
the allied governments.
A direct tax bill to raise appfoxi-'
mately 81 ,s00, ,000, 900, which wiii sup
ply the fund sto redeem the certih-
Gates of indebtedness, is to follow the
bond bill.
Several Republican members ef the
committee reserved the right TO ofer
amendments on the floor, but not vote
against the bond measure.
The President and Secretary Of the
Treasury, under the liberal authoriza-
tions Of the bill, are to becoms the
greatest money lenders In all time
A per capita tax Of 500 on every
man, woman. and child In the United
States Is applicable under the bond
bill.
Secretary McAdoo viii determine
the form Of the bonds, although there
Is Q disposition upon some nf rhe
mine rity members OF the COMMITTEES
to seek an amendment limiting the
bonds to thirty years.
To Treble NatisnaI Debt. :.
referring to the future debt Of the
United States. the committee report
says:
"The total interest-bearinE debt
outstanding February 25. 1917.
amounted to se73. 900 900. Under exist
ing law S472. 900 900 worth Of bonds
are available to be issued. This bill
authorizes. In addition to the bonds
already available to be issued under
existing law and exclusive Of $1,000
000, 900 bond Issue to extend credits
to foreign governments, which takes
care OF itself. the issue OF $4,000. .000.
900 worth OF bonds. Should this
amount of bonds be issued the total
debt Indebtedness.
exclusive of the $1,000, 900 900 to for
eign governments, will amount to $3,-
$4,000 ,000."
Agree on Bond Issue.
The worlds greatest bond issue
so far as q single transaction Il con-
cerned-was agreed upon By the
Ways and Means Committee after
several hours Of consultation with
Secretary McAdoo. When the COM
mittee adjourned yesterday afternoon
1t was announced the fundamentals
Of the bill had been informally ac-
cepted and the meeting today would
result In the writing in Of technical
Amendments and the report Of the bill
to the House.
No more sweeping legislation was
ever reported by a committee Of Q re-
publican form OF government than
the bond issue bill. II gives the
President unlimited powers to spend
three billion dollars In acquiring ths
obligations Of foreign governments"
The President may buy the bonds
of England, France, Russia, Japan,
Italy, or any other country In the
present period OF world emergency
and the necessity for bringing the
war to q conclusion
Given Broad Powers.
The Secretary of the Treasury is
given broad powers to determine the
maturity and denomination of the
United States bonds to be sold.
The bond bill means that more than
$1,000, ,000, 900 worth of the obliga-
tions OF the United States, bearing
3h per cent interest, will be offered
to the public within the next few
weeks. Not only does the bill carry
authority for a 5000. 900 900 bond is-
sue and the Issue OF $4,000 900 200, ed-
ditional In one-year Certificates of
Indebtedness" but Il converts into
81 per cent bonds those recently au-
thorized at per cent.
Bonds heretofore authorised amount
to several hundred millions and in
clude those for the purchase Of the
Danish West indies, the construction
Of an armor plate and nitrate plant.
funds for the shipping board, the
speeding up Of the naval program,
the Alaskan railroad, and the Mexi-
can mobilization
$4,000. 100000 Needed New.
In deciding to issue $4,000. .0oo, 900
in certificates OF Indebtedness the
Ways and Means Committee is pre-
pairing to meet current defense bills
pending the receipt OF returns from
the special taxes to be levied.
Certain Republican members OF the
committee are said to have been con-
cerned over the possibility that In
the end the obligations OF foreign gov
ernments might not be worth their
face value.
Suppose at the end OF the war" the
objectors said in substance, 1--WE should
be approached by a proposition that q
billion dollars worth OF these. bonds
could not be redeemed as per contract
Would we make donation OF that
amount?"
The Secretary OF the Treasury IL
reported to have intimated that the
Administration was willing to take
the chance, and wanted no strings put
upon the loan.
$4,000 900 For Floating.
In deciding to make convertible
the 8 per cent bonds authorized re-
Gently for various internal improve