Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-08-15
WOULD ISSUE LOAN
At FOUR PER CENT.
indications Strong New Bonds
May Bear This Rate of
Interest.
TALK OF TAX HEARD, TOO

Indications are strong today that the
new $4,000, 100000 bond issue for an
allied loan, to be authorized at the
present session of Congress, will bear
per cent interest.
No official announcement as to the de-
sired interest rate on the bonds has
come from Secretary McAdo6, but from
authoritative sources it is learned that
an advance of one-half of ! per cent
over the interest rate of the first allied
loan is being considered seriously by
administration leaders both in the cabi-
net and in Congress.
Aim to Hasten Sale.
The primary purpose of the proposed
rate increase is to hasten sale of the
bonds If the allies are to continue
their present hard drive. it is generally
understood, they must have money inn
mediately. and interest rate increases
have been suggested as the quickest
and surest methods OF raising funds.
1t will require approximately the en-
tire 81 600, 600. 900 to enable the allies to
carry on the war until December, 1t Is
understood. and if this amount is not
obtained soon there may be serious
dimunition in their efforts.
Certain members of Congress also are
urging the raising of the interest rate
in order that they may tax the bonds.
Whether they will be able to make the
bonds taxable, if indications are that
such move would impede the sale
Of them, is doubtful
1t is probable that at least $1,000
900, 900 of the $4,000. 900 to be raised
at the next session of Congress for
domestic war needs will be in bonds,
l. l,a
interest rate on them higher than Il
per cent.
Republican Support Indicated.
United support of republican and
democratic members Of the ways and
means committee in authorizing the
ss. 900 900 600 additional war funds Mr..
McAdoo declares necessary nov. is in
dicated The Secretary conferred at
length today with Representative
Moore of Pennsylvania, ranking re-
publican member Of the ways and
means committee now in Washington.
Mr. Moore declined to discuss the con-
ference in more than general way.
saving the Secretary probably would
make an announcement in a few days.
but he urged the country to prepare to
make new bond purchases.
To Meet Demand.
While the request of Secretary Nc
AGoo for additional appropriations and
a further bond issue came as an un-
welcome surprise to Congress. there is
not the least indication of unwilling
ness to meet the demand 1t is declared
in every competent quarter a the Cap
itol that the government can have all
the money it requires for the conduct
of the war. and the last thing Congress
will do will be to ball< in this direc-
ton.
Realization is dawning upon the leg
islators that the war is certain to prove
costly beyond any preconceived ideas.
but the hand is set to the plow, and
it is asserted with positiveness that
Congress will go to the end of the
furrow without faltering.
Senator Simmons, chairman of the
committee on finance, will confer with
Secretary McAdoo during the day as to
details, and members of the House COM
mittee on ways and means. who will
take the initiative in the legislation,
also will acquaint themselves with the
situation.