The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-04-21
SENATE PASSES BOND ISSUE.
NOT A DISSENTING VOTE ON IS
SUE OF $7,OOO,OOO,O BONDS
FOR WAR PURPOSES.
Is Greatest Single Budget Voted in
History Of Any Nation-$3, 900 O,OOO,-
600 of 1t Will 60 to Allies as a Loan
PLANS Being Made to Have Fund
Available i'm Near Future.


$1,000, 100000 in securities-the larg-
est single war budget in any nations
history-was passed unanimously to-
night by the senate. After seven hours
Of discussion the administration meas
urc, which passed the house last Sat
urday and which provides for a loan
to the allies of $4,000, 200, 900, was
approved by the senate with few
changes in record time. The amend
nlents may necessitate a conference
or the senate changes may be ac.
cepted by the house.
In either event the executive
branch of the government conduct
ing the war with Germany will with
in few hours have authorization for
the great war chest at its disposition.
To expedite action the senate tonight
appointed conferes to act if the
house, contrary to expectations,
should not accept the senate changes
or the 81 senator's present tonight
every one, including all those who
voted against war except Senator Lane
Of Oregon, who was absent because
| Of illness, recorded themselves in IA
vor Of providing the funds to prose-
cute hostilities. Nearly all the IL a5-
sentees were ill.
That, in the inability of the nation
to supply men at once for the fight
ing line, money should be America S
! immediate contribution to her allies
was the dominant thought expressed
during the debate. Every senator
speaking announced staunch intention
to aid the government in prosecut-
! ing the war to a speedy conclusion
! Only two senators. Borah and Cum
Minis, declared opposition to the pro-
posed allies loan.
Amendments adopted by the senat4
include provisions:
Limiting deposits Of proceeds from
the bonds in banks to the amour:
subscribed by the banks and their de-
positors; permitting deposit of pro.
ceeds in State banks and trust com
| panies as we'll as federal reserve
banks; providing for exchange by
subscribers of the issues authorized
for bonds subsequently issued during
the war at higher interest rates; re-
quiring the secretary Of the treasury
to report expenditures of the bon,!
proceeds December 81 and annually
thereafter and eXempting the ST.
O0,O0O,O00 of treasury Indebtedness,
certificates authorized, from all tax-
alton except estate and inheritance
levies.
BY mistake it was first announced
that S3 senator's had voted for the
bill
While the senate was debating the
measure, Secretary McAdoo held an
informal conference with the mem
oers Of the advisory council Of the
federal reserve board. including J. p.
Morgan. who were holding their quar-
terly meeting here. To the mem
bers Of the council Mr.. McAdoo an
nounced his intention of taking coun-
sci with financial experts of the coun.
try as to the best methods to be fol-
lowed in the flotation of the issue
In their individual capacity the visit
ors were requested to submit sug.
gestions to the secretary.
The council discussed the issue at
it's afternoon meeting and will con-
tinue the discussion tomorrow.
Later Mr.. McAdoo announced he
would invite representatives of the
leading bond and investment houses
Of the country to confer with him
before Offering any part of the issue.
1t is likely that the first Of these
conferences will be held within q few
days. The term of the bonds the
manner in which they shall be Offer
ed, whether by public subscription.
at par or competitive bidding or both
the nature Of the bonds and many
minor details yet remain to be SET.
tied.
Representations made today to the
secretary were to the effect that the
country is in excellent condition Il
absorb without disturbing norma
business virtually the entire amount
OF the issue. 1t is unlikely. how
ever. that the full S7,0OO,OO 900 in
bonds and certificates will be issued
at one time.
As 2,OOO,OO0,OO0 is in certificates
and are short term government notes
there probably will he no disposition
on the part Of the federal reserve