The sun., 1918-12-10
Urges Legislation to Extend
Period in Which Credits
May Be Granted.
WOULD AID AFTER PEACE
Moore Sees in It New IlluStra-
ton of Democratic Tend
ency to Free Trade.
sp,cfa, D,spafch 10 The suN.

the Treasury McAdoo submitted to
Congress to-day the draft Of Dill
providing for an extension Of the time
limit in which credits may be ex-
tended to the Allies and fixing limits
on maturity dates for long term con-
version Of the loans that have been
made payable on demand.
Mr.. McAdoo made 1t plain that he
deems It wise to continue to aid the
allied governments through credits
during the reconstruction period. that
they may buy foodstuffs and materials
needed for physical reconstruction.
Only 81. 800. 100000 Left.
This country. he says, should con-
tinue to sell to the Allies on credit
until conditions are adjusted to a
peace basis.
It is pointed out in his letter ac-
companying the draft of the proposed
legislation that only $500, 100000 Is
available out of authorizations OF S10,-
900 100000 for such credits, but asks
for no increase In authorization. He
expresses the view that the balance
available, taken with materials that
the peace conference may award. prob
ably will be sufficient On view Of the
fact that there will be an Offset from
the purchase of materials in allied
countries for our army abroad The
text Of the legislation recommended is:
Section 1. That the proviso at the
NJ -
bond act as amended by the Third Lib
erty bond act and the Fourth Liberty
bond act be and hereby is amended so
as TO read as follows:
provided that the authority granted
by this section to the Secretary OF
the Treasury to establish. with the APP
proval OF the President, credits for
foreign Governments as aforesaid
shall cease upon the expiration Of the
period of one year after the termlna-
ton OF the war between the United
States and the Imperial German Gov
eminent; and provided further that
after December IS. 1918, such credits
may, with the approval Of the Presi
dent, be established for such purposes
growing our OF said war as the Sec
rotary OF the Treasury shall deter
mine and after the termination OF said
war In favor of the Governments OF
such foreign countries as were pre-
viously engaged in war with the enc
mics OF the United States.
Secretary 10 FIX Dates.
Section 2 The obligations of for
eign Governments acquired by the
Secretary OF the Treasury by virtue
OF the provisions OF the First Liberty
bond act. the Second Liberty bond
act and the Third Liberty bond act
or the Fourth Liberty bond act shall
mature at such dates as shall be de-
terInined by the Secretary OF the
Treasury: provided that such obllga-
lions acquired by virtue OF the pr0vi-
slons OF the First Liberty bond net
or through the conversion Of short
time obligations acquired under said
act shall mature not later than June
Is, 1a47. and all other such obligations
of foreign Governments shall mature
not later than October IL, 1885,
The fixing of maturity date would
avoid shortening Of the time limit on
allied loans and credits by the issu-
anCo of another short term loan.
"Cnder the existing law credits may
be established by the Secretary Of the
Treasury with the approval of the
President only for the purpose OF the
national security and defence and the
prosecution of the war I'm favor of
Governments engaged in war with the
enemies of the United States and the
authority to establish such credits
ceases upon the termination OF the
war between the United States and the
Imperial German Government
IF the draft bill enclosed herewith
should be enacted the authority to es-
tablish such credits would be con-
tiuued for the period Of one year after
the termination OF the war. and after
December Is, 1918, credits might he
established with the approval OF the
President for purposes growing out Of
the war and after the termination OF
the war In favor of the Governments
Of such foreign countries as were pre-
viously engaged in war with the enc
mics OF the United States.
May Convert Obligation
THE obligations OF tho allled Gov
ernments which have been acquired
nv the United states n,lrsuont IN nv