South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-04-08
Bond Issue of S5,000,000,-
600 Is Forecast Following
Action to Relieve En-
tente'S Needs.
GRANT OF MONEY WILL Be
MADE BY U.S.. WITHOUT PROFIT
Federal Authorities Believe
That American Banks,
Corporations and Others
Will Subscribe.
Associated Press Service

WASHINGTON, April Admin
istration leaders in conference today
decided to unlock at once the vast
| financial resources of the United
States 70 the allies.
To relieve the economic needs of
the entente governments a huge
loan Of dimensions yet undetermined
but not less than $4,000, 1000, 900
will be forthcoming from this coun-
try as speedily as congress can pass
/ the necessary legislation.
Not a penny Of profit, il was au-
thoritatively stated. will be expected
or received by this country on the
loan. The loan will be Americas
immediate contribution TO the allied
cause. with the promise Of other
bountiful contributions Of money.
munitions, and foodstuffs to come
as needed.
An immediate bond issue. possibly
totally $1,000, 10000 is forecast by
today's action. The exact amount is
yet TO be determined
Legislation providing for the issue
will be introduced in congress speed
lily, not later than next week, and
within 80 days, posi- bly, before the
end Of the present month, a sub
stantial portion of the great loan is
expected to be available for the en-
tente governments.
VIII Issue Bonds.
The forthcoming bond issue. il
was authoritatively said. which will
be placed before the public as quick
~ as possible in denominations down
TO 800, possibly TO S25, Will bear "a
reasonable interest rate" and the
entire army of American investors
banks. corporations and individuals
will be afforded an opportunity 10
su bscribe.
Treasury department end federal
reserve board officials believe that
$4,000, 600, 600 bond issue can be
absorbed without difficulty by Amer
lean investors and il is likely that
this will be the first sum offered.
The present plans calls for the ex-
change OF American money. dollar
for dollar. for foreign bonds at par.
Bonds of the entente governments
would be accepted by the American
government as security for the loan.
The interest rate on the foreign
bonds, il was said, will be same as
on the bonds TO be issued by this
government in raising the big loan.
Thus. should the first loan to the
allies be $4,000. 600. 0OO-a sum in
Dictated by one official participating
in the formation OF the program
the United States would make this
sum available out OF proceeds of its
owns bond issue, taking bonds to
the face value of 100000. 900 from
the allied governments TO which the
/ loan Is made. The allied bonds
would be held in the treasury here
the American government at the
same rate as the government would
pay on the American bonds sold in
this country.
Not all of the first big bond issue.
il was intimated. would be loaned
10 the allies. sufficient reservation
being made 10 cover the naval and
military needs OF this country not
met by taxation A considerable
proportion Of the $4,000. OOO 600 al
ready asked OF congress for the mill
/ tary and naval establishments dur
ing the first year will be raised by
increased taxation. possibly as much
as $500. 900, 600.
First Financial Law.
The bond issue will be the first
/ financial legislation Of the war 70
| engage the attention Of congress.
under the present program and IN
/ til after its passage, congress will
not be asked 20 take up the ques-
| ton OF war revenue taxation. The
taxation legislation, as has been in
dicated would probabl require more
| time for passage than would author
ization for a bond issue and would
have 20 be based on data al pres
/ ent in process OF tabulatiOn.
The immediate need OF the gov
ernments making common cause
with the United States in the war
on Germany. IL was pointed out. is
/ money. This the American people
are abundantly able 20 supply. Thus