The Washington times., 1917-02-27

tea by the Act of Congress approved
September ., 1914: for the purpose
of insuring vessels, their freight, pas
sage, moneys and cargoes against
loss or damage by the present risks
of war.
''For the purpose of meeting the
expenditures herein authorized the
Secretary of the Treasury, under the
direction of the President. is hereby
authorized to borrow on the credit
of the United States and to issue
therefor bonds of the United States
not exceeding in the aggregate $780,
100000, said bonds to be in such form
and subject to such terms and condi-
tions as the Secretary of the Treas
ury may prescribe and to bear in
terest at the rate not exceeding 3
per cent per annum; provided, that
such bonds shall be sold at not less
than par. shall not carry the circu-
lating privilege, and that all citizens
of the United States shall be given
equal opportunity to subscribe there
for, but no commission shall be al
lowed or paid thereon: that both
principal and interest shall be pay
able in United States gold coin of the
present standard of value, and be
exempt from all taxation and duties
of the United States as well as from
taxation in any form of any State,
municipal or local authorities; that
any bonds issued hereunder may,
under such conditions as the Secre-
tary of the Treasury may prescribe,
be convertible into bonds bearing
higher rate of interest than 3 per
cent per annum IL any bonds shall
he he States
higher rate than 3 per centum per
annum by virtue of any act passed
on or before December 81, 1918.
in order to pay the necessary ex-
penses connected with the said issue
lof bonds, or any conversions there
of, a sum not exceeding one-f1fth of
1 per centum of the amount of the
bonds herein authorized to be issued,
or which may be converted, Is here
by appropriated out of any money
in the Treasury not otherwise appro-
priated, to be expended as the Secre-
tary of the Treasury may direct"
Republicans Hostile.
Incipient hostility to any legislation
that would give the President blanket
authority in the international crisis
was apparent on the Republican side OF
the House within a few minutes after
Mr.. Wilson had delivered his message.
This hostility developed during the aft
ernoon. and when Chairman Flood. Of
the Foreign Affairs Committee. intro
duced the Administration bill 1t was
Immediately subjected to Republican
scrutiny and criticism.
The Republican attitude is that the
Congress should give the President
Authority to arm merchantmen and
perhaps to convoy ships through the
danger zone. However. the Republi-
cans Of the lower body demand that
the language Of the bill passed shall
be as specific as language can be- IL
the President is to arm or convoy ships
the Republicans insist that the words
arm" and convoy shall be used.
CritIeIses Language.
Therefore. the words In the Flood bill
authorizing the President to use such
other instrumentalities" at once came
under Republican displeasure. Mr..
Flood. in cloakroom and corridor dis
cussion. asserted that these words
merely authorized the President 10 use
conveying vessels on the high seas.
They did not mean or imply. he added.
a declaration OF war nor the use of
the armed forces Of the United States
in the usual sense OF the use Of armed
forces.