Evening star., 1917-04-08
Administration Leaders Decide
to Lend Possibly Three Bill
lion to Germany's Foes.
FIVE BILLION BOND ISSUE
MAY BE PUT UP TO PUBLIC
Tentative Plan of Financial Aid as
Americas First Part in War
Made at Conference.


the vast financial resources of the
United States to the allies.
To relieve the economic needs
OF the entente governments a
huge loan of dimensions yet un-
determined, but not less than
S2,OOO,OOO,OOO, will be forthcom-
ing from this country as speedily
as Congress can pass the neces-
sary legislation.
Not to Charge Cent of Profit.
Not penny of profit. it was author
itatively stated, will be expected or
received by this country on the loan.
The loan will be Americas immediate
contribution to the allied cause, with
the promise of other bountiful contri-
buttons of money, munitions and food
stuffs to come as needed.
An immediate bond issue, possibly
totaling s5,ooo,ooO.oO0. is forecast by
yesterdays action. The exact amount
is yet to be determined
Legislation providing for the issue
will be introduced in Congress this
week, and within thirty days, pos
sibly before the end of the present
month. a substantial portion of the
great loan is expected to be available
for the entente governments.
The Forthcoming bond issue, it was
authoritatiyely said, will be placed be-
fore the public as quickly as possible
IN denominations down to 500. possi-
h W Nnytl
est rate" and the entire army Of Amer
ican investors-banks, corporations and
indivfduals-will be afforded an op-
portunity to subscribe"
Treasury Department and federal
reserve board officials believe that a
$4,000. 100000 bond issue can be alb
sorbed without difficulty by Amertcaii
investors. and 1t is likely that this
will be the first sum offered.
Foreign Bonds as Security.
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,
will be the same as on the bonds to
be issued by this government in rails
ing the big. loan.
Thus. should the first loan to the al
lies be So, ,000, ,000. .000-a sum indicated
by one official participating in the for
nation of the program-the United
States would make this sum available
out of the proceeds of it's own bond is
sue. taking bonds to the face value of
s3.000.00O.000 from the allied govern
ments 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
pay on the American bonds sold in this
country.
Not all of the first big bond issue, it
was intimated. would be lent to the al
lies. sufficient reservation being made
to cover the naval and military needs
OF this country not met by taxation A
considerable proportion of the S3,5OO,-
100000 already asked of Congress- for
the military and naval establishments
during the first year will be raised by
increased taxation. possibly as much as
s1,500,000,000.
First Financial Legislation.
The bond issue will be the first finan.
cial legislation of the war to engage
the attention of Congress. under the
present program. and until after its
passage Congress will not be asked te
take UP the question of war revenue
taxation. The taxation legislation. il
is indicated. would probably REQUIRE
more time for passage than would au.
fhorIZat1on for a bond issue, and woulc
nave 10 De based on data at present il
process of tabula tion.
1t was also revealed that the admins.
traflon had been in recent communica.
ton with the finance ministers of som,
OF the allied governments and that tn.
nf
were outlined and made the basis of tn,
determination to lose no time in comint
to their assistance. Official deputa tion,
from the chief allied governments prob
ably VIII be sent TO the United States f.
was said. to cooperate with American
officials in devising the most effectiy,
method OF placing funds at the disposa
OF the entente governments.
The immediate need of the govern.
ments making common cause with tn.
United states IN the war on GERMANY 1
was pointed out. is money This IN,
American people are abundantly able t,
ing and equipping army and increas
ing and Strengthening its naval forces
American money. mopilized now as neye
before, can be put to work as the Jrnitet
States most Immediately effective weapon
against her enemy
Private Credits. Too.
suance by the government of a larp
loan to the allies would not be the onl
financial assistance to be rendered then
Immediately. but that extension of pri
vate banking credits would be encoura ge
as well.
The decision to make the allies grea
loan was reached in conferences yester
day afternoon between Secretary McAdoe
Chairman Simmons of the Senate tinanc
committee, Senators Lodge and Snnoot tn
former ranking republican member of tn
foreign relations committee and Repre-
sentatives Sherley, ranking majorit
member OF the appropria tions committed
and Fordney, Garner and Hull of tn
ways and means committee.
Mr.. Kitchin Called Home.
Chairman Kitchin OF the ways an
means committee was no. present a
the conference. because he was called
North Carolina to attend the funeral {
his brother. Representative Mann. re
CONTINUED on Second Page.)