Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-04-08
AMERICA OPENS
TREASURY DOORS
Decides to Advance En-
tente 2 Billions or More
Immediately.
CHARGE NO INTEREST
While U. S. Army Is Being
Drilled, Gold Will Help
Subdue Foe.
CHARGE NO INTEREST

WASHINGTON. April 7.-Adminis-
tration leaders in conference today de-
cidcd to unlock Mt once the vast fl
nancial resources OF the United States
to the allies.
To relieve the economic needs OF the
entente governments n huge loan of
dimensions yet undetermined but not
less than $4,000. 10000 will be forth
coming from this country as speedily
as congress can pass the necessary
legislation. Not penny OF profit, II
was authoritatively stated. will be ex-
pectcd or received by this country on
the loan. The loan will be Americas
immediate contribution to the allied
cause, with the promise of other boun-
tiful contributions OF money munitions
and foodstuffs to come as needed.
$4,000, ,OOO,Oo Hond Issue.
An immediate bond issue, possibly
tallying $1,000, 900 900 is forecast by
today's action. The exact amount is
yet to be determined.
Legislation providing for the issue
viii be introduced In congress not later
than next week. Possibly before tho
end OF the present month a substantial
be available for the entente govern
ments The forthcoming bond. IL was
said, will be placed before the public
as quickly as possible in denomina-
tions down to 800, possibly to $25,
wiz bear "a remarkable interest rate"
and the entire army OF American in
vetsors. banks. corporations and indi-
viduals-wlll be afforded an oppor-
tunity to subscribe.
Treasury department and federal re-
servo board officials believe that a
ST, 000, 900, 900 bond issue can be alb
sorbed without difficulty by Ameri-
can investors. and It is likely that
this will be the first sum offered.
Dollar for Dollar.
The present plan calls for the ex.
change OF American money dollar for
dollar for foreign bonds at par. Bonds
of the entente governments would be
accepted by the American government
as security for the loan. The interest
rate on the foreign bonds, 1t was said
Will be the same as on the bonds to
be issued by this government in rais-
ing the big loan
Thus, should the first loan to the
allies be $4,000, 900, ,000-a sum indi-
Gated by one official participating in
the formation of the program, the
United States would make this sum
available out of proceeds of its own
bond issue. taking bonds to the face
value of $4,000. 900 900 from the allied
governments to which the loan Is
made. The allied bonds would be held
I'm the treasury here. Interest on them
would be paid to the American gov
eminent at the same rate as the gov
ernment would pay on the bonds sold
In this country.
Raise Much by Taxation.
Not all of the first big bond issue.
II was intimated. would be loaned to
the allies. sufficient reservation being
made to cover the naval and military
needs OF this country.
Considerable proportion Of the $3.-
500, 100000 already asked OF congress
for the military and naval esta blish-
ments during the first year will be
raised by increased taxation. possibly
as much as $1,000, 100000.
Our Money Modified.
The immediate need of the govern
ments making common cause with
the entente allies in the war on Ger
many II was pointed out. is money
Thus while this country is raising and
equipplng an army and IL strengthens
ing its naval forces American money
modified now, as never before, can
be put to work as the United States
most Immediately effective weapon
against her enemy
The decision to advance the allies a
great loan was reached I'm conferences
this afternoon between Secretary Me-
Adoo, Chairman Simmons of the sem
ate finance committee, Senators
Lodge and Smoot. the former ranking
Republican member of the foreign re-
lations committee, and Representa-
tives Sherley, ranking majority menu
bers of the appropriations committee,
and fordney, Garner and Hull of the
ways and means committee.
Chairman Kitchin OF the ways and
means committee and Representative
Mann. Republican leader in the house.
were unable to attend the conference.