Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-04-18
PASSES WAR BILL
Continued from Page One)

flow from this loan. l do not want the
United States to be the bond creditor of
any foreign power. 1 do not want to en-
ter the entangling alliances which pos
session of these foreign bonds will en-
tail. l fear that in the years to come
the fact that the United States has bonds
of these countries, all of which will be
bankrupt at the wars close, will create
embarrassment which men of that time
will find difficult to overcome.
We should give our money in a gen.
erous and patriotic spirit for the Allies
to do anything we are not now able to
do"
Senator Hoke Smith declared that the
Allies did not want a gift from the United
States to maintain their armies and their
ships.
Six billions in bonds and only one biz
lion of treasury certificates was favored
! by Senator Calder, who said he feared
further increases In taxation might serl-
ously impair industry.
This bill is waking up the American
people," said Senator Kenyon. 1T dom
! onstratcs no half-heartedness in this
country. no dilly-dallying, because our ac-
} lioll uluSt NC SPECIFY W re VI oNdii inns
tremendous sum staggers us but it will
stagger the enemy. too. 1t will cause the
American people to realize the stupendous
task we have undertaken
. Referring to the proposed loans TO the
Allies, Senator Kenyon said he hoped
France would never be asked to repay.
because 1--WE owe more to France than We
can ever repay"
The Aid of Money
! Senator Sterling of North Dakota de-
| clared that the United States could not
render more effective aid than by money.
He advocated gift Of s25,coo,C0o to aid
the Allies in caring for the Belgans.
Senator Smoot said he had not the
slightest doubt that the $3,O00,Oooooo
| loan to the Allies would be paid. but
| if it were not every penny VIII pc
expended in defense of the principles
, we believe in and are fighting for
He declared that if tho President saw
fit to advance Russian billion dol
lars and to take in return obligations,
| if it would establish republican form
! of government he would favor its ad-
| yancement even though the United
| states were IUl " SCI bstIfN q >Nii''
! Senators Reed and Stone, of Mis-
souri,, objected to authorizing state
banks and trust companies to become
| depositaries for the bond proceeds m
| sisting that the federal reserve banks
| alone should receive the proceeds pc
! ing the backbone of the nations fiscal
system Others contended, however,
that the financial burden is general and
| any advantage should not be limited
! to the federal reserve banks.
Senator Lodge said the door should
be opened to every financial institu-
ton of good repute.
Partisan Evidence
The first open partisan division oc-
| curing car upon an amendment by
| Senator Weeks to stipulate the exact
/ form in which the bonds shall be is
sued. 1t was lost by a tie vote, 40
| to 40 Senator Stone, q finance COM
mittee member, refrained from voting
and the Vice President refused to
J break the tie because. he said, he
knew nothing of the technical financial
questions involved.
The Weeks amendment proposed that
instead Of giving as the bin provides
broad discretionary powers to the Sec
rotary of the Treasury to prescribe the
| form of the bonds. there should be sew
eral issues, limited to 90 years, in de-
nominations of $50 and multiples. Sem
! atOr Weeks said this would be correct
| financing and would save tens of mill
ions of dollars
! Senator Simmons explained that the
committee and Secretary McAdoo felt
it desirable that the government have
the widest latitude, to meet eXigencies
of the market, in floating the enormous
issues.
The Senate accepted another amend
ment by Senator Weeks providing that
the conversion privilege of subscribers
| shall be for bonds issued during the
war with Germany and not, as the bill
| proposed. limited to bonds issued be-
! fore December 81, 1918.
| Other Amendments
Other amendments adopted include
| provisions:
Limiting deposits of proceeds from
| the bonds in banks to the amount
subscribed by the banks and their de-
| positors: permitting deposit of pro-
CetuS III Stdtc DdlhS anu u uSI Scill-
| panies, as we'll as federal reserve
banks; providing for exchange by sub
scribers of the issues authorized for
| bonds subsequently issued. during the
war, at higher interest rates; requiring
| the secretary of treasury to report ex-
penditures of the bond proceeds. Dec.
| 81, and annually thereafter; and ex-
empting the 100000, 900 Of treasury
| indebtedness certificates, authorized
| from all taxation, except estate and
| inheritance levies.
BY mistake, it was first announced
| that SO senators had voted for the bill.
A corrected tally showed the vote 81
with as the Vice President announced
1.-The nays being nay"
| With the passage of the bill accom-
plished treasury department officials
| turned their attention to the details of
policy yet to be settled in the actual
| issuance of he bonds.
| While the Senate was still debating
| the measure, Secretary McAdoo held
| an informal conference with the men,
| bers of the advisory council of the fed
eral reserve board, including j. P.l