The Washington times., 1917-04-13
Big BOND ISSUE
BILLPRESENTED
House Cheers as Kitchin. Intro
duces Measure for 81, ,ooo,-
100000 Loan.
Continued from First Page.)

|
Treasury in making a loan to foreign
/ governments who are at war with the
Imperial German government. In other
words. this Government can purchase
Of foreign governments their bonds to
| the amount of $3,000.O000OO. but such
bonds must have the same terms and
conditions and bear the same rate OF
| interest and mature in the same man.
ner as the bonds OF the United States
which we are preparing to sell
May BE Converted.
at is further stipulated that IL
the United States shall issue any
bonds at a higher rate OF interest
than az per cent before December
| 1. 1918, the bonds herein authorized
may be converted into the bonds
bearing the higher rate. The same
restrictions will apply to the foreign
bonds acquired; that is, the terms
and conditions of bonds sold and pur-
chased by us must be the same.
ITO billions OF the proceeds of
our bonds will be given to this Gov
ernment to enable ii to proceed with
the prosecution OF the war against
Germany. The two billions addi-
tional of the certificates of indebt-
edness is to enable the Government
to have ready money to meet war
emergencies. War taxes will not be
available for a year, and il is pos
sible that some of the taxes will not |
be available for eighteen months or
two years and these certificates OF
Indebtedness, maturing one year
from issue, are to fill in the gap"
Protests Section.
Congressman Fitzgerald, chairman
of the Appropriations Committee, in
terrupted Mr.. Kitchin with a protest
against the last section of the bond
bill, which provides $4,000. 900 for the
expense of floating the bond issue.
Half that sum, Mr.. Fitzgerald said,
would be sufficient for all expenses
Nobody in the Treasury Depart
ment or any other department can
justify such an estimate for the cost
of floating these bonds" said Fitzger-
aid.
The bill provides that one-fifth of /
per cent of the amount OF bonds and
one-tenth of 1 per cent OF the amount
OF certificates of indebtedness may be
used by the Secretary of the Treasury
for all expenses incident to the bond
issue.
Would Block Bankers.
Congressman Caldwell, a New York
Democrat, said the bill should be
amended so as to prevent ]. p Nor
gan & Co. or any other bond bankers
from making a cleanup on the Gov
ernment obligations.
Former Senator Mason OF Illinois. /
now a House member, advocated
bonds of small denomination
Like the Democratic leader, ii
voted against the war resolution"
said Mr.. Mason, but now that we are
at war all of us want to see il success
fully prosecuted. IL f. a time when
the people should have faith in their
Government, and the people should be
acquainted with what the Govern
ment Is doing and made to feel they
have a part in the war program.
This can be accomplished by needing
the old Biblical saying that where !
your treasure is there your heart is
also"
Asks Postal Issue.
Put these bonds out in denomina- |
tions of $50 to $50. and sell them |
through the postoffices. as we did in
the Scandinavian war, when the |
issue was oversubscribed many times, |
and you will inspire public co-opeTa-
tfon and confidence"
Leader Kitchin was subjected to
rapid-fre of questions by members
who wanted the details OF the Gov
ernment's plans.
What bonds are We going TO buy?"
asked Congressman Huddleston, Of
Alabama. THE bonds OF what particu-
lar nation?"
Il would not care to mention the ma
tion particularly said Mr.. Kitchin.
understand hat he a1I !
grouped themselves together in financ-
ing this war. Are we going to buy
the bonds OF one nation or a group of
nstions?" persisted Huddleston.
Separate Nation. q
81 think We will take the bonds of a
separate nation. not a group
Then the bonds would not be bound
by the group agreement" said Hud-
dleston.
Congressman McFadden Of PennsyI-
vania, a banker. asked II the sale Of
3l2 per cent bonds would not have a
bad effect upon the market value OF
outstanding > per cent bonds.
THE = per cent bonds have the cir
culsting privilege, which makes them
valuable and will steady their market
values" said Majority Leader Kitchin.
Mr.. McFadden said there were out
standing about S6i1 900 900 in > per
cent bonds carried by the banks OF
the country.
Congressman Madden. an Illinois
Republican. asked how the United |
States is to protect itself II the bonds
of foreign governments are selling
far below par.
I'VE don't want to be giving two
for one" he said.
All the More Reason.
I'VE are in this war with the allies"
said Mr.. Kitchin. I'VE ought to do
everything in the world to help the
I-pitad States and tboss 6gbt;nor ,,.;,L