Evening journal., 1918-09-14
LIBERTY BOND TAX
BILL PASSES HOUSE
Legislation Exempting $780,
600 of New Issue from
Levy is Unopposed
SENATE WILL
SPEED THE BILL


WASHINGTON, Sept. i4-Almost
without a hitch and without a dissent
ing vote the legislation demanded by
the Secretary Of the Treasury as neces-
sary to the certain sale Of the next
Liberty bond issue was passed by the
House yesterday.
Chairman Kitchin, OF the Ways and
Means Committee, occupied most Of the
time in the discussion OF the legisla-
tion. but none Of the speakers opposed
it. Mr.. Kitchin's talk was almost en-
tirely an explanation OF the features Of
the measure drawn by Mr.. McAdoo.
An amendment to the bill offered by
Representative Plat (N. " was adopt
ed after Mr.. Kitchin agreed to t. It
removes the provision that only 800
worth Of war savings certificates may
be obtained in one purchase.
"The present law is a dead letter,
anyhow" Mr.. Platt said Every one
violates Il. / understood even the
President has violated it by buying
81 900 worth Of certificates at one pur-
chase"
only one real fight on any feature
took place. Representative Hayes Cali
formal tried 10 strike out the pro-
vision giving the Secretary Of the
Treasury power to prevent buying,
selling and trading in United states
bonds and certificates Of Indebtedness
to aid In stabilizing their market value.
In committe OF the whole the House
adopted this by a vote Of 81 to 81. but
in the House proper Representative
Kitchin. in charge Of the bill, managed
TO change the mind Of the House and
the amendment was beaten, ii6 TO 81,
leaving the bill In almost exactly the
shape In which it came from the Ways
and Means Committee.
"The Secretary Of the Treasury be-
lieyes it is essential for the protection
OF Liberty bond holders, big and little,
for the President OF the Secretary Of
the Treasury TO have the power TO reg
ulate and prohibit, II necessary, the
sale OF or transfer OF these bonds and
certificates Of indebtedness" said Mr..
Kitchin.
"At present there is no power to pro-
hibit doubtful buying. selling and trad
ing in these bonds and certificates. Lit
tie bodies OF men here and thereof
whom the Treasury Department knows
ARE buying up Liberty bonds and
manipulating them for forcing down
the price Of bonds so that the interest
rates on succeeding bond issues viii be
higher"
The Senate Finance Committee, when
apprised Of the action Of the House, de-
cided to drop consideration Of the
revenue bill for the time being and will
take up the McAdoo legislation tomor-I
row only brief consideration Is neces-
ssry. It is believed for the committee
will be prepared to submit the bill to-
the Senate.
Chairman Simmons Just before ad-
iournment OF the Finance Committees
hearing on the revenue bill today, sug-
gested to the members that it was ex-
pected the bill would be passed by the
House before adjournment.
in that event." Senator Simmons
said, ut will be my desire to have the
bill before the committee, where I be
lieve only a few hours will be needed
for its consideration"
Senators Lodge (Mass.) and Robinson
tArk.). who will have to attend the
specially called meeting Of the Commit /
tee on Foreign Relations. asked to be
recorded as present for the purpose OF
counting a quorum OF the Finance
Committee, which insures full atten-
dance and the probable unanimously /
favorable report upon the measure |
when the Senate recOnvenes Tuesday.
Representative Cannon (ll.) suggested /
that, instead Of exempting Liberty /
Bonds from all taxes up TO the limits /
set in the McAd0o measure, all out /
standing Liberty Bonds and the next /
issue be converted 70 per cent. bonds /
entirely free Of all taxes.
Representative LOngwOrth (0hiO), /
the last speaker, showed the House j
there are three ways TO bring Liberty /
bonds 20 near parity on the exchanges /
and hold them there. These ways are /
70 raise the interest rate. 10 raise the (
normal tax on incomes and TO exempt I
the income from the bonds from taxes /
10 a certain extent.
Mr.. Longworth said he thought II |
would be advisable 70 increase the in /
terest rate from AZ per cent. TO /
higher rate.
"For some time / agreed with Mr.. /
Cannon that the best thing to do would /
be to have a 8 per cent. bond free Of 1
all taxes" said Mr. Longworth, but I
now agree. with the gentleman from /
Texas. Mr.. Garner, that It would be in
advisable TO add 10 the tax free obliga- /
tions Of the government. We must do /
though, and ! am thorough
ly convinced that the thing to do IS to
proceed along the lines laid down in
this bill.
However" Mr.. Longworth continued,
the credit for the idea is really due to
Mr. Cannon, OF Illinois In the second
Liberty Loan act he offered an amend
nent TO exempt from surtaxes and ex-
cess profits taxes the income from SiO,-
700 worth Of these bonds, but the
House cut this amount down to $1,000.
we are nuw proceeding along those
iines. but we have raised the exemption
70 $4,000 on the coming issue Of
ANOTHER AUTO STOLEN.
DESPITE thp pffnrfs % a.. !