The review., 1917-03-01
BILL AUTHORIZING WILSON
To ARM MERCHANT SHIPS
INTRODUCED IN CONGRESS

Washington. After conferences
with Democratic and Republican lead
ers, Chairman Flood, of the House
Foreign Affairs Committee, Introduce
ed a bill authorizing the President to
arm merchant ships and use "such
other instrumentalities as necessary"
to protect them on the high seas, and
providing for a special bond issue OF
$1OO,OOO,OOO.
The text of the Flood bill follows:
"Section BE it enacted by the
Senate and House of Representatives
of the United States of America in
Congress assembled, that the Presi-
dent of the United States be and here
by is authorized and empowered to
supply merchant ships, the property
of citizens of the United States with
defensive arms, should it in his judg
ment become necessary for it to do 50,
and also with the necessary ammuni-
tiOn and means of making use of them
in defense against unlawful attack;
and that he be and is hereby author.
lied and empowered to employ such
other instrumentalities and methods
ton seem necessary and adequate to
protect such ships and the citizens Of
the United States in their lawful and
peaceful pursuits on the high seas.
Section 2-The sum of one hundred
million dollars is hereby appropriated
out of any moneys in the Treasury
not otherwise appropriated to be ex
hNyf a nf
States for the purposes herein stated,
the said sum to be available until the
first day of January nineteen hundred
and eighteen; and the President is
authorized to transfer so much thereof
as he may deem necessary to the bu-
reau of war risk insurance, created
by act of Congress, approved Septem-
ber 2, 1914, for the people insuring
vessels, their freight, passage moneys
and cargoes against loss or damage
by the present risks of war.
"Section 3-For the purpose of meet
ing the expenditures herein authoriz-
ed, the Secretary of the Treasury, un-
der the direction of the President, is
hereby authorized to borrow on the
credit of the United States and to ls-
sue therefor bonds of the United
States not exceeding in aggregate
500, 100000, such bonds to be in such
form and subject to terms and con-
ditions as the Secretary of the Treas
ury may prescribe, and to bear inter
est at the rate of not exceeding 3 per
cent per amman, provided, that such
bonds shall be sold at not less than
par, shall not carry the circulating
privilege, and that all citizens of the
United States shall be given an equal
to subscribe therefor, but
no commission shall be allowed Or
paid thereon; that both principal and
interests shall be payable in United |
States coin of the present standard of |
value, and be exempt from all taxa
ton in any form of state, municip Il |
or local authorities; that any bonds |
issued hereunder may under such con-
ditions as Secretary of the Treasury
may prescribe be convertible into |
bonds bearing higher rate of interest |
than three per cent per annum, if any
bonds shall be issued by the United |
States at a higher rate than three per
cent per annum, by virtue of any act |
passed on or before December 81,
1918.
'Section 4-In order to pay the nee
essary expenses connected with the
said issue of bonds, or any conversions
thereof, a sum not exceeding one-ffth
Of one per cent of the amount of bonds |
herein authorized to be issued, or
which may be converted, is hereby ap-
propriated out of any moneys in the
Treasury not otherwise appropriated
70 be expended as the Secretary of the
Treasury may direct