The Washington herald., 1917-04-08
half GOES TO. ALLIES
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asked to subscribe heavily. It was stated
! by a high Official yesterday that arrange
ments are to be made for participation in
the distributing OF the bonds to the pub
! lie by every bank m the country which
desires to aid. Postrnastsrs. collectors of
tipternh revenue. and other agents of the
government probably will be given bonds
to sell on behalf of the American govern
ment.
Reserve, Banks to Ala,
The central agencies for tho distribu-
ton OF the bonds will be- the twelve Fed
! erRl Reserve BsnkR These banks them
| selves will not be expected to subscribe
| to the loans. that being outside Their
| function, but they will. handle them as
lthe statutory fiscal agents Of the gov
esnnient. t'S;r -
Essn tn. method of granting credit
to the entente allies has been worked
out IN the minds OF the administration
officials. Bonds are to be issued by the
Treasury bearing from 3 to 3 1-2 per cent
interest. These will be sold direct to the
American people. The proceeds of these
sales then will be sent to the entente
allies, and they will issue their bonde
as security. The same rate will be
charged the allies as the American gov
eminent win pay. no profit being taken
on the gigantic deal
Cooperation Contempt plated.
Although some s47o.ooo, 900 in bonds
has been authorised, by Congress al
ready for preliminary Preparedness
measures, these securities viii not be
issued pending the big war finance
legislation
Indications increased during tho day
that tho American government will
prosecute the war in very close rela-
tionship with the governments of the
Entente alliance. While II Is not like
ly that the United States formally Will
enter into . treaty agreement for an
absolute concert OF action with the en-
tents allies. It appears certain that
and that. risks, burdens, and glories
\ will be shared.
The bond legislation 10 to be pro-
vided before the war tax measure n
taken up. Practically no work has
been done so far on the writing Of q
new revenue raising measure. That
heavy income taxes and levies upon
luXuriss will be included Is q foregone
conclusion The last emergency reve-
nue. bill. passed at the outbreak OF the
European war. was not successful. ex-
cept for the documentary stamp tax
and the special liquor war tax. These
two items probably will be revived
National Bhnks Prosperous.
With the country on the verge Of q
big war loan, Comptroller Of the Cur
rency Williams yesterday issued state
ment showing unprecedented prosperity
among the national banks of the United
States He reported that on March 5
the date OF the last call. the national
banks-which represent less than half OF
the banking strength Of the country-had
resources agsregating S1b,sTs. 900 900
The report shows the banks reserves
| amounted on March 5 to S26f2, ,0oo, 900 and
their excess reserves to S1.1o9, ,ooo. oo0 De-
posits aggregated s12S67. 900, 900. q sum ex-
ceedinE by s4es, ,0Oo 900 the largest deposit
| ever held by national banks before. AL
! these national banks are in q phenome-
nally strong position. according to the
comptroller.
Oficials have been making a careful
study OF the power OF tho American peo-
pie to absorb a war loan and have come
to the conclusion that the tremendous
prosperity which the last few years have
wrought will mako the assimilation OF
s., 900 10000 OF war bonds comparatively
easy. This financing can be accom-
plished, the government feels, without
causing any considerable economic dis
fffrhanca