The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-04-10

washington. April S.-3 three bill
hon dollar loan to the entente allies,
a two billions Of dollars toward tn"
can0uct OF the war by the United
States will be the division OF
Americas first war loan. Secretary OF
the Treasury McAdoo announced to-
night, The secretary said that the
administration would ask congress for
au' hority 10 issue the five billions of
bonds. and ne declared his confidence
that the entire issue would ne quickly
l. ken up 10y the nation.
Secretary McAdoo's announcement,
In AT official statement. came after
he had spent the day in conference
with congress- onal leaders. He also
conferred with ]. T. Morgan. of New
York, and Governor w. Z. g. Hard
ing. OF the federal reserve board.
Morgan told the government fnan-
ciers that the great New York finan-
cial interests stand solidly behind the
administration in its present financial
policy and can he counted upon for
support He also declared that the
country was financially prepared 10
absorb the tremendous bond issue
contem plated. and that money market
conditions are favorable tor the IS-
ste.
VfsFr--S 1t N-%NtN4*A|~--A
The bill to authorize the bond is
sarc VIII probably be presented To
VI Thursday. with q request
for immediate action. The admin-
iteration Secretary McAdoo said to-
night conten plates issuing the war
loan at three and one-haN per cent
interest.
The method OF aiding the entente
powers. as outlined ~ Secretary Nc
Adoo's statement. will he TO purchase
the OBLIGATIONS of the gorelgn govern
rnents selected as benenS'aries. Dear
ing the same rate ot interest az nv
bonds iss,ied by this country Inc
seeretary's statement. outlining the
most stunendous financial operation
,-..-4- undertaken hYihe- government.
nj tho United states. Is as follows;
S.crc,,ry NcAdoo's Statement.
.4-rhe administration will ask congress
ra, authority 20 issue $4,000 ooo oo"
of government bonds to meet the STU
alton created by the war with Ger
n,arv The proposed bonds will be
axnmnt from, taxation and bear IN
terest probably at az per cent per
annun. Two billion dollars OF these
bonds will he required to finance, III
mart, the expenditure involved IN lhe
proper organization and operation OF
the army ana navy aAu tht
of the war generally. OF course.
larger amount of additional revenue
will have TO be raised by taxation. but
iris part of the problem is under con-
sideration by the ways and means
of the house of represeh-
tatives. 1t will naturally take a rea-
sonable time to discuss and agree upon
the new items for taxation. when
should not, and. / am confident, VIII
not, become the subject of partisan
treatment,
Three billion dollars of the pro-
posed issue of bonds should be used
to supply credit to the governments
making common cause with us against
Germany to enable them to secure
essential supplies in the United States
and carry on the war with increased
effect The most service HE thing We
can do Immediately for the common
cause is to furnish credit TO these for
eign governments, who. in conJunc-
ton with us, are fighting Germany.
This financial aid ought to be extended
at the earliest possible moment. 1t
will be trebly valuable and effective
If extended now.
THE purpose is to purchase the
of the foreign governments
to which credit is given. such obliga-
tons to bear the same rate of in
terest, and. in other essentials. to
the same terms and conditions
as the bonds of the United States.
Great Populnr Loan.
The bonds of the United States VIII
be offered as a great popular loan.
and the widest opportunity will be
given to the public to subscribe and,
by subscribing. to perform one of the
most patriotic services that can be
rendered to the country at this time.
In view Of the fact that the laws
OF the United States forbid the pay
ment OF com missions on sales OF gov
bonds II is extremely graft
Tying 70 have received SO, many offers
from bankers and others throughout
the country Of the free use Of their