New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-08
Government to Advance
Money as Quickly as 1t
Can Be Raised
Plans Complete for
$4,000, 900, 900 Issue
Bonds Will Be Offered for
Popular Subscription in
Small Denominations

Washington. April 7.-Administra.
tion leaders in conference to-day de-
cided to unlock at once the vast fnan.
cial resources Of the United States 20
the Allies.
To relieve the economic needs Of the
Entente governments a loan Of dimen-
sIons yet undetermined, but not less
than S2,00O,0OO,OOO. will be forthcom-
ing from this country as speedily as
Congress can pass the necessary legis-
lation.
Not a penny of profit. It was au-
thoritatively stated. will be expected
or accepted BY this country on the
loan. The loan will be Americas i'm
mediate contribution to the Allied
cause, with the promise Of other
bountiful contributions Of money, mu-
ntions and foodstuffs to come as
needed.
An immediate bond issue, possibly
totalling S5,OOO,OOOOOO. is forecast by
,to-days action. The exact amount IS
yet TO be determined.
Legislation providing for the issue
will be introduced in Congress speed
ily. not later than next week, and
within thirty days, possibly before the
end of the present month, a substan-
tial portion Of the great loan Is eX-
pected to be available for the Entente
governments.
Popular Subscription
The forthcoming bond issue, it was
authoritatively said, will be placed be-
fore the public as quickly as possible,
in denominations down to 500, possi-
bly, to s25; will bear "a reasonable in
terest rate" and the entire army oi
American nvestors-banks, corpora
tions and individuals--will be afforded
an opportunity to subscribe.
Treasury Department and Federai
Reserve Board officials believe that a
50 900, 900, 900 bond issue can be alb
sorbed without difficulty by American
investors, and it is likely that this Will
be the first sum offered.
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, it was SAID
would be the same as on the bonds 70
be issued by this government in raising
the big loan.
Thus. should the first loan to the
Allies be S3,OOO,O0O O0O-a sum indicat-
ed by one official participating in the
formation Of the programme-the Unit
ed States would make this sum avail
able out of the proceeds of its own
bond issue. taking bonds to the face
value of $4,000 100000 from the Allied
Governments to which the loan is made.
The Allied bonds would be held in the
Treasury here. Interest on them would
be paid to the American government at
the same rate as the government would
nav on the American bonds sold in this
country.
L. s. 10 Cover Own Needs
Not all the first big bond issue. It was
intimated, would be loaned TO the Al
lies. sufficient reservation being made
70 cover the naval and military needs
Of this country not met by taxation. A
considerable proportion Of the s3,5O0,-
600 900 already asked Of Congress for
the military and naval establishments
during the first year will be raised by
increased taxation. possibly as much as
1880. 100000
The bond issue will be the first fnsn-
cisl legislation of the war to engage the
attention of Congress under the pres
ent programme, and until after its
massage Congress will not be asked 20
take up the question of war revenue
taxation. The taxation legislation, IT
* indicated. would probably require
more time for passage than would
authorization for a bond issue, and
would have TO be based on data az
present in process Of tabulation.
The immediate need OF the govern
ments making common cause with the
United States in the war on Germany,
il was pointed out, is money. This the
American people are abundantly able
70 supply. Thus. while this country is
raising and equipping an army and IN.
creasing and strengthening ITS naval
forces. American money, modified now
as never before. can be put 10 work as
the United Ststes's most Immediately
effective weapon against her enemy.
Credit Aid for Entente
IntimationS we're conveyed thu. the
issuance by the government OF large
loan 20 the Allies would not be the only
financial assistance TO be rendered them
Immediately, but that extension OF prI.
vate banking credits would be eneour'
aged as well.
Il was also revealed to-day that the
Administration had been in recent
communication with the finance minis
tiers OF some OF the Allied governments
and that the immediate needs Of those
governments were outlined and made
the basis Of the determination 20 lose
no time IN coming 70 their assistance.
Oficisl deputations from the chief Al
lied governments probably will be sent
10 the United States. II was said, 70 CO.
operate with American officials IN de
vising the most effective method of
placing funds At the disposal Of the
Entente governments