Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-19
BUDGET CALLS FOR
$l1,538,945,460
Bill, Embodying Recommends
tons of McAdoo, Before
House Committee.
APPEAL TO SMALL INVESTORS
Probably Will Not Be Taken Up
Until After Revenue Meas
ure Passes.
APPEAL TO SMALL INVESTORS
TPy Associated P-ess.1

"HSrlit>'loN, august lo.-authorl-
cation to issue bonds and certificates
totaling s11.53S.e45.45o at one time is
provided in the new war budget bill.
embodyinG recommendations OF Sec
rotary McAdoo. which came from the
printer to-day to the House Ways and
Means Committee.
In addition to authority to float
s7.53s.o45.46o 4 per cent bond issue to
care for previous $4,000. 100000 and
future $1,000. ooo. 900 allied loan au-
thorization. the secretary desires power
to issue additional certificates of in
debtedness to the amount of $4,000, 00o.-
600 and an equal amount Of war saw
ings certificates in a form available to
small investors.
Lives of the certificates of indebted
ness and war savings certificates would
be limited to one and five years, re-
spectively, and they would be subject
to discount and payment in the dis
cretion of the secretary. He also would
fix the interest rates and regulate in
terest payments. They. like the bonds,
would be subject only TO supertax. war
WOULD PROVIDE AGAINST
SUDDEN DEMAND FOR MONEY
Inclusion of the two additional GER
tihcate proposals. not mentioned here
tofore by administration leaders in
connection with the bill, is understood
to be principally for the purpose Of
providing against a sudden demand for
money which the Treasury might not
be able to meet. AS congressional
leaders understand the situation. 1t
may not be necessary to issue many
of the certificates. but they would
prove the means of getting money
quickly II 1t were needed.
Authorization to issue the certificates
would prove particularly valuable, 1t
is pointed out, II Congress should not
increase the revenue !, bill now under
discussion by s50o.ooo,ooo. as proposed
by, Mr. McAdoo. 1t is by no means GER
tain that this proposed increase will
be secured
In the war savings certificate pro-
posal. administration leaders think
they have discovered the means of ap-
pealing to the patriotic man OF small
means. Purchases Of these certificates
would be limited to 800 worth at n
time. and no individual even would be
permitted to hold more than $1,000
worth. of them. Plans also are being
made to accept very small payments
on them, the bill providing that the
secretary may, II he deems advisable
issue stamps to evidence payments
Under such an arrangement payment
of such amounts as 81 or less might
be made and noted. as are postal saw
ings banks deposits
EVERY ONE MUST FEEL
HE is DOING HIS BIT
Leaders feel it is essential l. the
success of the war that every one be
made to feel that he is doing his bit,
particularly in a financial way. AL
though the interest rate has not been
determined. it doubtless will be ample
to attract investors.
In general respects the bill IS similar
to the budget of last April which au-
thorized $4,000. 100000 worth OF bonds
and s2.000.000,000 in certificates of in
debtedness. The new per cent bonds
could not be sold less than par; and
the secretary would be authorized to
purchase allied bonds at par, but their
rates of interest must not be less than
the highest rates paid by the United
States bonds. The new bonds also
would be convertible IL later the
United States should issue other bonds
at a higher rate Of interest. None Of
the bonds would bear the circulation
privilege.
Indications tonight are that the bill
will not be taken up for passage until
after the revenue bill passes the SEN
ate, probably next week