Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-12-05

zen really helps In this great time.' He
added, however, that he did not mean
to discourage legitimate - trading in
government securities
Mr.. McAdoo expressed the hope that
additional funds to be raised during the
balance of the year be by bond issu IS
rather than by taxation. saying:
1T Is my earnest conviction that the
general economy of the country should
be permitted 10 readjust itself to the
new revenue laws before considera-
ton should be given to the imposition
OF additional tax burdens"
OF the possibility that interest rat ~
on future liberty bond issues might 10
raised, the secretary said:
IF situation should develop where
tho government could not sell convert
ihle<and partly tax exempt bonds upon
a 4 per cent basis. 1t would. believe,
become necessary to seriously consider
further revenue legislation. In my
judgment an increase in the rate OF in
terest Of such bonds would be oxtremes
ly unwise and hurtful.'
Secretary McAdoo disclosed that he
intends to recommend to congress lat
er in the session constructive and reg
ulatory laws to prevent capital from
going into public or private enterprises
unnecessary to the war.
Foreign Rates Stabilized.
{ The secretary disclosed that neutral
countries have entened cordially upon
negotiations looking to stabilizing for
eign exchange rates without shipping
from the United States the gold which
has been, accumulated here In the last
few years. At the time ne prepared
his report none Of the negotiations had
been completed.
Under the governments system OF
forbidding gold exports except under
license by the federal reserve board,
Secretary 3McAdoo explained, the ex-
portation Of gold has not been per-
nitted except IN those cases in which
unusual circumstances have seemed TO
justify the issue of licenses for Its ex-
port The department has not, how
ever, rested content with negative
policy OF prohibition. but has initiated
a series OF negotiations having for pur-
pose the, substitution Of arrangements
which, while holding the necessity for
large exports OF gold. would yet sta
Billie the exchanges between the Unit
ed States and neutral countries
Although the nature OF these negotia-
lions were not disclosed, 1t is under
stood they relate to Investments In the
United States by neutral capital and
restriction Of imports from neutrals.
The secretary explained that the Unit
ed States now holds more than one-
third OF the worlds gold monetary
stock.
Praising the policies Of the farm loan
system, Secretary McAdoo said some
method must be devised for disposing
Of farm loan bonds as soon as they are
ISSUED in order to avoid suspendirg the
ioaning operations Of the banks. He
recommended also that the limit OF
$4,000 imposed by law upon loans to
any one individual be increased TO
s25,O0o.i,
Up to one week ago credits extended
to allied governments amounted to
81, 49,, 900. o0o The latest loans have
been at AZ per cent but Secretary
McAdoo explained that this rate In
turn will be further Increased in case
there should be higher rates Of inter-
est paid by the United States during
the continuance Of the war for the
moneys that 1T may invest in the pur-
chase OF foreign obligations"