South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-02-27
Bill Giving
Wilson Power
To Arm Ships

WASHINGTON. Feb. p. - After
/ conference with democratic and re-
| publican leaders. Chairman Flood
OF the house foreign affairs COM
mittee. introduced late Monday
bill authorizing the president TO arm
merchant ships and use such other
instrumentalities as necessary to
protect them on the high seas, and
providing for a special bond issue
of SIOO,OOO.OGO.
The bill was referred 10 the COM
mittee which will meet Tuesday
morning 10 consider it, The bill is
as follows:
BE il enacted by the senate and
house of representatives of the Unit
ed States OF America in congress as
sembled, that (Sec.1) the president
of the United States be and is hereby
authorized and empowered to supply
merchant ships. the property of citi-
Zens Of the United states and bear
ing American registry. with defensive
arms should il, in his judgment. be-
come necessary for him 10 do so and
also with the necessary ammunition
and means of making use of them in
defense against unlawful attacks:
and that he be and is hereby au-
thOrized and empowered TO employ
such other instrumentalities and
methods as may. in his judgment and
discretion. seem necessary and ade
quate TO protect such ships and the
citizens Of the United States in their
lawful and peaceful pursuits on the
high seas.
SECTION ,. The sum of $780,
/ 00O, 900 is hereby appropriated out OF
any moneys in the treasury not 9TH
/ erwise appropriated TO be expended
\ by the president of the United States
/ for the purposes herein stated. the
/ said sum TO be available until the
| first day of January, 1918; and the
/ president is authorized 10 transfer so
much thereof as he may deem neces-
sary to the bureau of war risk in
surance, created by act of congress.
/ approved Sept. ?, 1914, for the pur-
pose of insuring vessels. their
! freight, passage moneys, and cargoes
against loss or damage by the pres
ent risks of war,
SECTION 8. For the purpose of
meeting the expenditures herein au-
/ thorized the secretary of the treas
ury, under the direction Of the pres
ident, is hereby authorized to Dor
row on the credit of the United
States and to issue therefor bonds
of the United states, not exceeding
in the aggregate 100000, 900. said
bonds to be in such form and sub
I - 4
! as the secretary of the treasury may
prescribe, and to bear interest at
the rate not exceeding three per-
centum per annum; provided, that
/ such bonds shall be sold at not less
than par. shall not carry the circu-
lating privilege, and that all citi-
zens of the United States shall be
given an equal opportunity TO sub
scribe therefor. but no commission
shall be allowed or paid thereon:
that both principal and interest shall
be payable in United states gold coin
of the present standard OF value, and
be exempt from all taxation and du-
ties of the United States as we'll as
from taxation in any form Of all
state, municipal. or local authorities;
that any bonds issued hereunder may
under such conditions as the secre-
tary of the treasury may prescribe.
be convertible into bonds bearing a
higher rate of interest than three
percentum per annum if any bonds
shall be issued by the United States
at a higher rate than three percent
UNI per annum by virtue Of any act
passed on or before Dec. 81, 1918.
SECTION 4. In order TO pay the
necessary expenses connected with
the said issue of bonds, or any con-
versions thereof. a sum not exceed
ing one-fifth of one percentum of the
amount of bonds herein authorized
10 be issued. Oh which may be con-
verted is hereby appropriated out
Of any money in the treasury not
otherwise appropriated TO be expend-
ed as the secretary of the treasury
may direct"