The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-04-25
FIRST |NSTALMfNT Of
WAR BONDS TO Be TWO
AND HALF BILLIONS
Subscriptions viii Be Made Payable
I'm -Four Monthly instruments.
First Due July 1.
PROCEEDS WILL BE DIVIDED
BETWEEN ALL ALLIES
Three Hundred Millions of Short
! Term Certificates issued To Tide
Over Existing Shortage i'm Treasury
Cash.

. Washington. April 2i.--The war
bond issue will be started by the
placing of $4,000. 100000 to s2.oee'-
coo 600 in bonds on the market. sub
scriptions TO be payable IN four
monthly instruments, according to a
tentative plan of Secretary OF the
Treasury McAdoo, it was learned here
today. The first instalment Will come
into the treasury by July under
the plan.
The present program provides Tor
the apportioument of these monthly
instruments Of at least $500 ,Gho,o to
each among Great Britain, France.
Russia. Italy and the United states.
The war needs OF the four European
nations and of tho United states all
will be taken out of the big monthly
payments. If upon the expiration or
the four months more money Is need
ed. another big issue Will he declared
and handled in substantially the same
way.
Protects Market Against Disturbance.
This program is subject to Change.
blu, in all probab ility il will be f1nal-
ly adopted, administration officials
pointing out that ii has much TO rec
ommend it, il is stated that the plan
OF withdrawing the money fof the
bonds In monthly lnstaiments pro-
yides for the smallest disturbance to
the market. To withdraw practically
the whole amount of the new bond
issue at one time would strike the
banks Of the country blow that
would he difficult TO Withstand, bank
ers state.
Furthermore. ii is pointed out
much of this money will be paid out
both by the American government
and the European governments md
will And its way back into the banks
and the pockets of the subscribers in
the thirty-day interim between loan
payments,
Secretary McAdoo is especially de-
srous, that the American business
world be dSturbed as little as pos
sib1e by the governments war finan-
cling and has hit upon the monthly
payment plan as the most feasible TO
meet the situation and at the same
time keep a large revenue coming
into the treasury In view of the
fact that the $500. 600. 600 special is
sue of short term treasury certificates
OF Indebtedness. announced by Secre-
tary McAdoo last week was over
subscribed, the secretary decided to
increase the issue to $25o.000. 900
The amount of the neutrality-suspicious.
is great enough to take up the addi-
tional amount.
Secretary McAdoo also announced
that he probably will issue more of
these short term certificates in the
near future. They are issued not as
part of the general war financing
plan, hut as temporary expedient
Uncle Sans Cash Short.
Because of the s25.000.000 payment
for the Danish West Indies made
April 1. and of the increased govern
ment expenses due to the war. the
treasury working balance has fallen
OFF rapidly. The great bulk of the
income tax will come In late in June,
but the government could not con-
veniently wait until that time for
ready money to pay current obliga-
tons. With the $4,000. 900 added to
the short term certificates issued to-
day the total issue is brought up to
$500, 900, 900.