The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-04-20

ttHtdpie ioT Sc OF EXecIilfe
Branch. !;
Washington. April 1.-THE wal
finance bill providing for issuance OF
$1,000 100000 in securities s-the larg-
est single war budget in any nations /
history-was passed unanimously to-
night by the senate After seven hours
Of discussion the administration
measure, which passed the house last
Saturday and which provides for d
loan to the allies of $3,000000, 900,
was approved by the senate with few
changes in record time. The amend
ments may necessitate a conference
or the senate changes may be ac-
cepted by the house.
In either event the executive
branch of the government conduct
ing the war with Germany will with
in a few hours have authorization for
the great war chest at its disposition
To expedite action the senate tonight
appointed conferences to act if the
house, contrary to expectations,
should not accept the senate changes
Of the 81 senator's present tonight
every one. including all those who
voted against war except Senator
Lane of Oregon, who was absent be-
cause of illness, recorded themselves
in favor of providing the funds to
prosecute hostilities Nearly all the
u absentees were i'll.
That in the inability of the nation
to supply men at once for the fight
ing line. money should be Americas
immediat. contribution to her allies
was the dominant thought expressed
during the debate. Every senator
speaking announced staunch inten-
ton to aid the government in prose-
cutting the war to speedy conclu-
sion. Only two senator's, Borah and
Cummins, declared oppce 10 the
proposed allies loan.
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 de-
positors; permitting deposit Of pro-
ceeds in State banks and trust COM
panies as well as federal reserve
banks; providing for exchange by
subscribers, of the issues authorizeu
for bonds subsequently issued during
the war at higher interest rates; re-
curing the secretary Of the treasury
to report expenditures OF the bond
proceeds December 81 and annually
thereafter and exempting the ~
O0O,0OO,O0O Of treasury Indebtedness
certificates authorized, from all tan
stion except estate and inheritance
lcvies
By mistake it was first announced
that SO senators had voted for the
bill.
While the senate was debating the
measure, Secretary HcAdoo held an
informal conference with the mem
bers OF the advisory 'cuncil Of the
federal reserve board, including J. +.
Morgan, who were holding their quar-
terlv meeting here. To the MEM
bers of the council Mr.. McAdoo au-
nounced his intention Of taking coun-
sci with financial experts OF the coun-
try as to the best methods to be fol'
lowed in the fiotation Of the issue
In their individual capacity the visit
ors were requested to submit sug-
gestions to the secretary.
The council discussed the issue at
its afternoon meeting and Will con-
tinue the discussion tomorrow.
Later Mr.. McAdoo announced ne
would invite representatives OF the
leading bond and investment houses
of the country to confer With him
before Offering any part Of the issue
It is likely that the first of these
conferences will be held within a few
days. The term OF the bonds, the
manner in which they shall be offer
ed, whether by public subscription
at par or competitive bidding or both,
the nature of the bonds and many
minor details yet remain to be set
tied.
Representations made today to the
secretary 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, how
ever. that the full s7,oOO,O00,O00 IN |
bonds and certificates will be issued
at one time.
AS s2,O0O,OOO,0O0 is in certificates