Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-04-17
SENATE DEBATING
BIG WAR BOND BILL
Seven Billion Measure Expect
ed to Be Passed Before Ad-
journment Today.
STONE OBJECTS TO FORM

Debate on the $1,000. 100000 war rev.
enue bill. already passed by the House
and approved with slight modification
by the Senate finance committee, began
in the Senate today. Its passage before
adjournment for the day virtually with
out opposition was expected
| AS soon as the bill is disposed Of
democratic leaders of the Senate hope
to take up the measure which the mill
tary committee is drafting for raising
a large army.
Senator Stone Opposes Form
| Senator Simmons. chairman Of the
| finance committee, laid the bond bill. the
largest war budget in the history Of this
or any other nation. before the Senate.
Senator Stone Of Missouri, 6 committee
member, announced that he would vote
for its passage, but thought 1t should
have been framed along different lines
| He reserved the right to state his views
| later
This is a war measure, however. and |
accept the judgment of the committee,
said Mr.. Stone.
In a brief statement explaining the
bill in detail. Senator Simmons said
the proposed loan of $3,000.O0o.O0O to
credit, here and elsewhere. to assist US
in the prosecution of the war"
Senator Simmons predicted that after
the present huge issue is made still
another issue probably. will be neces-
sary, probably at higher interest
rate. For this reason, he said, 1t was
desirable to give subscribers to the
present issue the conversion right to
exchange their bonds for those having
the higher rate.
To Avoid Embarrassment.
The provision for $2.0o0.0o0.00o Of
one-year Treasury certificates of in
debtedness. Senator Simmons said. Is
merely to anticipate tax payments and
avoid "a situation in the Treasury
which might become embarrassing I'M
less the Secretary of the Treasury Is
authorized to make this temporary
loan"
Every consideration of prudence, in
the business in which we are now en-
gagged" he stated, requires that we
should authorize the President and Sec
rotary of the Treasury to quickly Sc
cure money that the operations of the
government may not be liable to en-
barrassment by lack of funds
For this reason, he explained, the
bill leaves to the executive authority
and power to decide how many Of the
Treasury notes shall be issued. up to
the two-billion dollar figure.
I'VE feel 1t desirable to give the
President and Secretary broad author
ity in this world confiagration in
which we are a party the North
Carolina senator added.
Says Time for Action Is Here.
ut is not necessary to discuss the
purpose of the American people that
lies behind this legislation" Senator
Simmons continued. The time for dis
cussion, certainly of purposes. has
passed. The time for action has ar
rived. The decree has been entered.
solemnly, after long hesitation and
elaboration.
Stating that time is now a factor in
the fight, Senator Simmons urged pas
sage of the bond bill today. He also
said he hoped this government would
avoid the allies early mistakes.
Il do not know of anything" he said,
(which would so inspire the hope. COM
| fort and confidence Of our allies who
are fighting in the trenches as prompt,
speedy action In the passage of this
measure. giving assurance that the
United States has emba rked in this mat
ter with intent that there shall be no
hating or backstepping-that all our
strength and resources, at whatever
| cost Of life and money, are to be thrown
! in the scale with them, in the great
| fight they are making in behalf Of lib
| erty and humanity"
Conversion Privilege Necessary.
Senator Norris of Nebraska inquired
| if the United States had ever before
provided for exchange of bonds at high
| err rates of interest
1.-The conversion privilege has been
| found absolutely necessary" Senator
| Simmons replied. THAT is the expert
ence of all the European governments.
| Interest rates have been constantly
| rising. That is likely to be our ex-
perience. Probably we will have to
pay more for money within a very
short time"
Senator Penrose of Pennsylvania,
senior republican of the finance COM
| mittee. who followed Senator Simmons,
also said the conversion privilege II
necessary.
1T is very evident that the loan could
not be fioated otherwise he said