The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-04-11
S., 600, 100000 in Bonds and
$2,OOO,OO0,OOO in Certifi-
Gates Of Indebtedness.
TO REPORT TT TODAY
Kitchin Predicts Passage Of
Measure Tomorrow or
on Friday.
ISSUES ARE CONVERTIBLE
Wilson and McAdOO to Direct
Distribution of $4,000
100000 to Allies.
ISSUES ARE CONVERTIBLE

WASHINGTON, April 10.-Bonds and
certificates OF Indebtedness totalling
$1,000, 100000 are authorized in q bin
which will be reported out by the.
Ways and Means Committee Of the
House tomorrow morning. This 10
the first real work of war Con-
gress."
The bill authorizes bond issues Of
$4,000. 100000. three-ffllts Of which 10
to be used by the Secretary Of the
Treasury for the purchase OF bonds to
be issued by unnamed foreign Cow
ernments and the rest Of which Is to
be used for purposes OF national Sc
curity and defence az authorized by
Congress. In addition the Secretary is
authorized to issue Treasury certifl-
$4,000, 100000 to run one year. Both
bonds and certificates will bear interest
at ga per cent. and will he convertible
to higher interest rates IL subsequent
issues bear higher rates.
Applications for allotments Of the
proposed s5 ,000, ,00O, 900 bond issue have
reached the Treasury Department in
such quantity that the Administration
believes the success OF tho issue all
ready is assured.
Wide Latitude Allowed.
BY the terms of the bill the Preki-
dent and, under him, Secretary Of the
Treasury McAdoo become probably the
greatest money lenders Of all time. They
have under their control the proceeds Of
*S.ooo,o0o.000 in bonds. and the only
restriction placed Oh their use of that
money Is that they purchase the secuYi-
Ties OF foreign Governments" unnamed
and undescribed in the bill
In the opinion OF the few who knew
the provisions OF t1c bill tonight the
wide latitude offered the President in
the handling Of this immense credit In
enert Sives' him "A secret war chest Of
sS'oOo,0o0 1000. with the proceeds Of
winch. while they must 60 to foreign
Governments he can WELD a. great Inc
nuence IN the war councils OF the ma.
tons fighting Germany.
The bill expressly leaves 20 the dis.
cretion OF the President and the Secre-
tary OF the Treasury the methods OF
issuing tho bonds, the date Of maturity
everything except the ratio Of interest
they are TO bear No prov! sion is made
at ths time for their retirement beyond
the authorization to tee Secretary OF the
!reesury to retire those nsed 10 cover
foreign bonds held by the United States
IN the event that the foreign bonds ara
redeemed at n time when the Govern.
ment bonds are due. Furthermore. II
Government held foreign bonds are 70.
deemed at time when noun o. the
3,0O0,0oo,000 Issue is due, the Secretary
IL authorized to apply such moneys to
! other United States obligations odt.
standing and due.
Estimate Future Rev~uue.
| Tie authorization 10. tie issue oA
$1,000 100000 in certificates OF indebt.
| edness indicates clearly that the revenue
| raising plans OF the Democrats contem,
| plate this amount annually In excess of
the anticipated normal revenues from
the tarin. the internal revenue taxes
| and the provisions of the revenue biIi
| passed last winter. Chairman kitchin
! explained that the certificates ur indeot .
| edness merely would anticipate in.
| creased revenues expected fiom future
revenue legislation. The original draft OF
| the bill prepared by Secretary A!rAdoo
provided that these certificates should
run fo- two years. Th!s was changed at
| to-day's meeting.
The provisions fo~ converting all
| bonds issued for the support OF tire vat
are made TO apply 10 any bonds issued
IN tho future. the per ce... hord is.
sues OF last session, Upward or $500.
| 100000. and Panama Cana, bonds A.
thorized but not ISSUED, being cpecis-
caly included In the bin. Tie measure
| specifically authorizes the use OF thess
| Panama Canal bonds 10 reimburse the
| Treasury FOR direct appropriations
toward tho construction Of the canal
| Under the conversion features tAess 4
per cent bonds viii! be issued .it 81, per
cent. and with the $500. o00. 900 new
issue VIII be subject 10 rorl = on to q
| higher rate OF intarcs. IT, tun even. tina,
subsequent issues bar ;,3r h,shsr rate
| Partisnnship Disapprars.
Wi.l the sNccg.!oa O. q few un!r
porta.. changes in pardsoc.nEy me bill
was accepted hv tina con- H,',tce In
exactly tie sr.". suggested ly Nn-retary
| McAdoo Tie Ne'rr'nr. YVES present
throug! ~. u meeting % the connittee,
which iuSted moro than three hours
Dur.Hg TIC meeting complete una.
n!rlIty OF support vas assured the
alan features or tho bill There 10 q
possibility that an attempt viii be made
| TO amend the Couysrs ION fea,ures ~ th<