New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-10
Demands Law
For Universal Service;
Faces Fight in House
McAdoo Tells
Plans for Raising
Five Billion Loan
Widest Opportunity To Be Given
Public to Subscribc-lnterest
Probably 81 Per Cent

Washington. April 9.-Ihe Admins
,ration's financial programme for
carrying on the war, in so far as 1t
relates TO the authorization Of $1,000
100000 bond issue. including $1,000
100000 to be loaned to the Allies, VIII
be placed before Congress within the
next forty-eight hours. with every
prospect of prompt approval.
The measure will be considered By
the House Ways and Means Committee
tomorrow afternoon The committee
probably will report the measure We'd
nesday and the House is expected to
begin it's consideration Thursday.
Official announcement was made to-
night by Secretary McAdoo Of the pro-
gramme as follows:
"The Administration will ask Con-
cress for authority TO issue S5,0Oo,OOO,-
900 of government bonds 20 meet the
situation created by the war with Ger.
many. The proposed bonds will be
exempt from taxation and bear interest
probably at 312 per centum per annum.
Two billion dollars Of these bonds VIII
be required 70 finance, in part, the ex-
penditures involved in the proper or
panization and operation Of the army
and navy, and the conduct OF the
war generally.
Taxation Plan Will Take Time
"Of course. a large amount of addi-
tional revenue will have to be raised by
taxation, but this part of the problem
is under consideration BY the Ways and
Means Committee Of the House Of Rep
resentatives. 1t will naturally take
reasonable time to discuss and agree
upon the new items for taxation, which
should not and, am confident, will not
become the subject of partisan treat
ment.
. "Three billion dollars of the pro-
posed issue of bonds should be used to
+ supply credit to the governments max
ing common cause with us against Ter
} many. TO enable them to secure essen
.ial supplies in the United States and
carry on the war with increased effect
The most serviceable thing we can 40
Immediately for the common cause Is TO
furnish credit to these foreign gov
ernments who. in conjunction with u.s.
arc fighting Germany. This financial
aid ought to be extended at the earliest
possible moment. II will be treoly
valuable and effective if extended now.
"The purpose is to purchase the obli-
cations of the foreign governments TO
which credit is given. such Obligations
70 bear the same rate rate OF interest
and in other essentials TO contain tne
same terms and conditions as the pondS
of the United States.
To Be Offered as Popular Loan
"The bonds Of the United States viii
be offered as great popular loan. ana
tho widest opportunty will be given TO
tbe nublic to subscribe. and by sub
.cribing TO perform one OF the most
patriotic htINlNtn AhhS 49,
10 the country at this time.
ain view of the fact that the laws OF
the United States forbid the payment
of commissions on sales of government
bonds. il Is extremely gratifying 10
have received so many offers from
bankers and others throughout the
country of the free use of their services
and facilities in making the proposed
Lond issue a success. II is the purpose
of the department to make use OF these
offers and 70 seek the assistance OF
the Federal Reserve banks, the national
hanks. the state banks and trust com
panies. tie savings banks. insurance
COMPANIES, private bankers and invest
ment bankers throughout the country
in the public Offering that will be made
OF the government bonds. Every gov
ernmental agency. such as the internal
revenue offices and postofiices. Will be
asked 70 assist in this patriotic work.
"When the Congress shall have grant
ed the necessary authority to make
public offer Of the bonds, ! shall take
the benefit of the counsel Of the most
experienced bankers and investors IN
the country as 10 the best means OF
making the offering pronounced sue
cess.