Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-10
PLAN Of FINANCE
READY TO SUBMIT
Measure Calling for $s,oOO,OOO,-
600 Bond Issue Before Con-
gress Within 48 Hours.
mA0O0 SURE OF ITS SUCCESS
Method of Aiding Entente Pow
ers With Huge Loan Out
lined by Secretary.
M'AD00 SURE OF ITS SUCCESS

istraiion's financial procr, r.,
1F'hf o" the war. in so far as it relates
10 IN" authorization Of q 81 ooo mo ooo
o"' 'SS""' including $4,000. 900. 900 to
oc ioan"d to tho allies. will he ,I.c.,
congress within the next forty
'lSht hours with every rrospoc, of
prompt approval
IN" measure calling for tho author
ization Of tho huge issue u;i, 80
sidcred by tho House Ways and Moan.
Committee Tomorrow af,crro,,
the Republican members have hoo,,
named. and upon the return NJ r,h,t-
man kitchin from North C.aroIin, rho
committee probably viii rcpor, the
measure on Wednesday,. and tho House
- expected TO begin its considor..;o,
on Thursday.
secretary McAdoo predicted that tho
bond issue would be ovcrwhclminpIv
subscribed. The facilities offered bv
bankers and others. who have asserted
'hat they would place their services
Tree OF charge at the governments dis
posal 10 aid i'll making the issue "A sue
cess. VIII be accepted. Assistance also
VIII be sought OF Federal reserve
banks, national banGs. State banks. in
surance companies private and invest
ment bankers and of every govern
mental agency. in floating tho issue.
TERM or BONDS YET
TO he DECIDED UPON
Mr. Mc.\doo also announced that he
would take the benef, of the counsel
OF the most experienced bankers and
investors OF the country as 10 the best
means Of making the offer "A pro-
he
bonds is yet to be decided upon. as
we'll as the denominations, but il is
likely that there will be little change
III the plan to issue them in dencmina-
uons as low as so5. Temporary GER
tihcates. as usual. will be issued at
first to be redeemed when the govern
ment will have had time lo ensrave the
bonds
Mr.. McAdoo conferred to-day with
Representatives Rainey. Longwor and
Moore. and with Senators Penrose and
Hastings in addition I" other Repre-
sentatives and Senator'S with whim he
had conferred before. regarding the
issue j. p. Morgan, in Washington or
other business for few hours. paid
a fve-minute call on .dr. McAdoo. The
bond issue was discussed incidentally.
il was said. and Mr.. Morgan remarked
that he thought the country was in
condition to readily absorb large
issue
OUTLINES METHODS
OF AIDING ENTENTE
The method OF aiding the entente
powers, az outlined in Secretary Ne
.,doos statement will he 10 purchase
the obligations OF the foreign govern
ments selected as beneficiaries bear
ing the same rate of interest as the
bonds by this country. The secretnry's
statement. outlining the most stu
penduous financial operation eve" un-
dertaken by the govetnmHn, Of the
United States read:
The administration will ask Con-
sress for authority to issue $1,000 600
900 OF government bonds TO meet the
situation created by the war with
Germany. The proposed bonds will he
exempt from taxation, and pear inter
est probably at 81. ner cent per an
mum. Two billion dollars OF me bonds
VIII be required to finance in part
the expenditure involved in the proper
organization and operation of the army
and navy and the conduct OF the war
generally. OF course. a larger amount
of additional revenue will have 70 lie
raised by taxation. hut this part of
the problem is urdcr consideration Ly
the Ways and Means COMMITTEES II tn,
House Of Representatives. 1t will nat
urally take reasonable time To dis
guss and agree upon the new items for
taxation. which should not and am
confident. will nc, become. the Subject
OF partisan treatment
Three billion dollars OF the rro-
posed issue Of bonds should lac used
to supply credit TO the governments
making common cause with Us aca!ns,
Germany, 10 enable them to secure IS
sential supplies in tho United states.
ana carry on the wai with increased
effect. The most serviceable thinc We.
car do mmediately for the common
cause is to furnish credit to these for
eisn Sovcrnmenis. who. in coui,,nc-
tion with Ms. are fighting Germany.
This financial aid ought TO be n.,cnled
1T the earliest possible moment /,
Will hc trebly valuable. and effective If
extended now
T0 HAVE SANE CONDITIONS
As UNITED STATES BONDS
The purpose is 10 purchase tho obi
cations Of :he foreign governments to
which credit is givcn--such hlir.,t,ons
to bear the same rate OF interest and.
in other essentials TO contain the same
terms and conditions AS the bonds of
the United States
"Thc bonds Of the United states will
nc offered as great popular loan. and
the widest opportunity will he given
to the public to subscribe. and by sub
scribing. to perform one of the most
patriotic services that can be rendered
to the country at this time.
I'm view of the fact that the laws OF
the United States forbid the payment
Of commissions on sales Of government
bonds. 1t is extremely gratifying to
have received so many offers from
bankers and others throughout the
country of the free use OF their SER
vices and facilities in making the pro-
posed bond issue success. 1t is the
= lconlin1ed on Ninth Fage.5