The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-04-19

| Washington, April 18.-The war
finance bill, providing for issuance of
81, 900, 100000 in securities-the largest
single war budget in any nations his
tory-was passed unanimously by the
senate.
After seven hours of discussion the
administration measure, which was
passed by the house last Saturday and
which provides for loan to the allies
of $4,000, 900 was approved by the
senate with few changes, in record
time. The amendments may necessl-
tate a conference or the senate changes
may be accepted by the house.
| In either event the executive branch
of the government, conducting the war
with Germany will, within few hours.
have authorization for the great war
chest at its disposition.
| To expedite, action, the senate last
night appointed conferees to act II the
house should not, contrary to expec-
tations, accept the senate changes.
OF the "a senators present last night,
every one, including all those VINO
Evoted against war, except Senator
Lane of Oregon, absent because or
illness, recorded themselves in favor
of providing the funds to prosecute
hostilities. Nearly all of the twelve
absentees were Ill.
That, in the inability of the nation
to supply men at once for the fighting
lines money should be Americas con-
tribution to the allies. was the dom
tnant thought, expressed during the
debate Few senators participated in
the discussion which was totally de-
void Of partisan expression. Every
senator speaking announced staunch
intention to aid the government In
prosecuting the war to speedy con-
clusion. Only two. Senators Borah
and Cummins, declared opposition to
the proposed allies loan. A few favored
raising a larger proportion by taxa
ton of the present generation ana less
upon bonds.
Amendments adopted by the senate
include provisions:
Limiting deposits of proceeds from
the bonds in banks to the amount
subscribed by the banks and their
depositors; permitting deposit OF pro-
ceeds in state banks and trust COM
panies as well as federal reserve
scribers of the issues authorized for
bonds subsequently issued, during
the war, at higher interest rates; re-
curing the secretary Of the treasury
to report expenditures OF the pono
proceeds, Dec. 81 and annually there
after and exempting $2,OOO.OOO'OOO OF
treasury indebtedness certificates au-
thorized from all taxation. except
state and inheritance levies.
By mistake, 1t was first announced
that 83 senator's had voted for the
bill. A corrected tally showed the
vote "a with. as the vice-president an
nounced. the nays being nay" with
the passage of the bill accomplished,
treasury department officials turned
their attention to the details or pol
icy yet to be settled in the actual is
suance OF the bonds.
While the senate was still debating
the measure, Secretary McAdoo held
an informal conference with the mem
bers Of the advisory council OF the
federal reserve board. Including j. +.
Morgan, who were holding their quar-"
terly meeting here. To the members
of the council Mr.. McAdoo announced
his intention OF taking counsel with
financial experts OF the country as TO
the best methods to be followed in the
flotation OF the issue. In their indl-
yidual capacity the visitors were re-
quested to submit suggestions to the
secretary. The council discussed the
issue at its afternoon meeting ana
will continue the discussion today.
Later Mr.. McAdoo announced that
he would invite representatives or the
leading bond and investment houses
of the country to confer with him here
before offering any part of the issue.
It is likely that the first of these con-
ferences will be held in a few days.
The terms of the bonds, the manner
in which they shall be offered, wheth-
er by public subscription at par or
bidding or both, the ma
ture OF the bonds and many minor de-
tails yet remain to be settled.
Representations made by the sec
retary were to the effect that the
country is in excellent condition to
absorb without disturbing normal
business virtually the entire amount OF
the issue. 1t is unlikely however,
that the full $1,000, 100000 in bonds
and certificates will be issued at one
time. "A more probable course, viii
be the offering OF the entire $1,000
0OO, 900 In bonds at once and the with
holding of the $2.0O0,000,000 in certi-
ficates until the money is needed.
AS the 2,000.000,00O in certificates
are short term government notes
there probably would be no disposition
on the part Of the federal reserve
board to regard them as investments
of such term as To make them UNI
to banks. Banks lending
the government money on these GER
would still be regarded as
their resources in a liquid
condition under previous rulings OF
the board"
In the case Of the bond issue how
ever, the government is DESTROYS Of
reaching the millions Of individual IN