The Knoxville independent. [volume] (Knoxville, Tenn.) 1894-current, 1917-04-21
$I,OOO,OOO,OOO
war BILL PASSED
BY THE SENATE
u. S. to Grant $4,000, 100000
Credit to the Entente
Allies.
final Vote WAS 90 TO 0
$40 100000 Ready for America
First Bond Issue Will Be FIoated
Within Two Weeks-SmalI
Banks Protected.

Washington, April 19.-The United
States will be ready within twenty-four
hours to place $3,00O,000,000 to the
credit of the entente allies and to
spend $4000,000,000 toward Americas
part in the war against Germany.
The senate unanimously passed the
bill authorizing the issuance of $4,000
100000 worth of government bonds
and $2,000,000000 worth of short-term
certificates of indebtedness for this
purpose. Eighty-four senators voted
II being absent
viii Market Bonds.
The first allotment of the bonds,
probably totaling nearly $1,000,000,000,
is expected to be placed on the market
within two weeks.
Speakers for the absentees put each
one in the record as favoring the bill
Absentees were Bankhead, Golf, Hol-
lis, Husting, Lane, Martin, Newlands,
Smith of Michigan and Smith of South
Carolina, Tillman, Underwood and
Warren.
The bill as it passed is strength
ened to gain the unanimous approval
of the country. Small financial insti-
tutions, such as some state and savings
banks, are fully protected and may
participate in the loan on exactly the
sssane ground As the great 1atienal and
federal reserve banks,
No depositor Of bank who with
draws his money for the purpose of
the bonds can possibly harm his own
interests of those of the depository,
because the bill now authorizes the
secretary of the treasury to- deposit
with any bank or trust company an
amount not to exceed the sum with
drawn by depositors or used by the
bank for the purchase Of the new
bonds of the $5,000,000,00O issue.
An amendment Incorporating this
feature in the bill was introduced by
Senator Weeks of Massachusetts, him
self banker.
Other amendments providing for a
report by the Secretary of the treasury
on the expenditure Of the funds raised
under the provisions of the bill were
adopted without making any changes
in the vital features.
Antiwar Senators Vote.
All senators who voted against a
declaration of war voted with the sena-
tors on the amendments and refrained
from discussing the bill. Senator Nor
ris of Nebraska voiced by an amend
ment his nonapproval of the provision
that the bonds shall bear higher rate
of interest If subsequent war bonds
are put out at interest above 3R per
cent authorized in this issue.
Senator Stone expressed his convic-
ton that the federal reserve banks
should handle the bond issue, saying
they were organized for just such pur-
pose and should be given the privilege
and the test of handling the great
loan.
A small but important amendment
that will greatly popularize the loan
exempts the, bonds from taxation of
any sort Neither federal, state nor
municipal government nor any other
taxing body of any kind may levy one
cent against the vast wealth repre-
scented in the issue of $5,000,000,000 of
bonds.
A fair estimate of the wealth that
will be absorbed in this popular loan
may be gained by the fact that the
bond issue alone increases the per
capita of Indebtedness Of the country
by $50, and the war budget provided
by the bill by $40 for every man, wom-
and and child in the country.
Small Banks Protected.
The Weeks amendment is made so
broad that no bank need fear whole
sale Withdrawals of money for the pur-
chase of bonds. The $3,000,000,000 for
loans to the nations of the entente
allies will undoubtedly be the first
great demand, but as this money is
to be spent largely in the United
States, banks and trust companies will
not feel the withdrawal heavily.
Another important amendment linn
tied the time of issue of bonds bear
ing a higher rate of interest and af-
fecting the present issue to the period
before the termination of the war the
date of the termination to be fixed by
proclamation.