The sun., 1918-09-14
LIBERTY BOND TAX
BILL PASSES HOUSE
Legislation Exempting $780,.
900 Of New Issue From
Levy Is Unopposed.
SENATE WILL SPEED IT
Provision Giving McAdoo
Power to Prohibit Sales
Is Retained.
specfoi DespafeA to THE sux.

Special DespafcA to THE sux
WASHINGTON. Sept. 1s-Almost w,th.
out a hitch and without a dissenting
vote the legislation demanded by the
Secretary Of the Treasury as necessary
10 the certain sale OF the next Liberty
bond issue was passed by the House To-
| day.
Chairman Kltchin Of the Ways and
, Means Committee occupied most OF ths
| time in the discussion OF the legisla.
| ton, but none Of the speakers opposed
II. Mr.. Ktchin's talk was almost en-
tirely an explanation OF the features 0.
the measure drawn by Mr.. McAdoo
An amendment 10 the bill offered b.
| Representative Plat IN. " was
adopted after Mr.. Kitchin agreed 70 It.
, II removes the provision that only 500
| worth Of war savings certificates may
| be obtained in one purchase.
THE present law is a dead letter,
| anyhow" Mr.. Plat said. Every one
violates It. ] understand even the Pres
dent has violated It by buying $500,
| worth OF certificates at one purchase"
Only One Fight Made.
! took place. Representative Hayes (Cal.
I
vision giving the Secretary Of tie
Treasury power to prevent buying sell.
ing and trading in United States bonds
and certificates of Indebtedness 10 aid
| in stabilizing their market value.
In committee OF the whole the Houss
| adopted this by a vote OF 81 to s..
but in the House proper Repre- sentative
K!tchin. in charge of the bill managei
to change the mind OF the H~use ard
the amendment was beaten. ZIG 10 g.
leaving the bill in almost exactly Ire
shape in which It came from the Was
and Means Committee
The Secretary OF the Treasury BE-.
lieves II is essential for the protection
Of Liberty bond holders, big and little
for the President or the Secretary 0,
| the Treasury to have the power 10 rec.
utate and prohibit, II necessary, the sa'a
Of Or transfer Of these bonds and cer-
ttaeates of Indebtedness" said NJ.
Kitchin.
| AT present there Is no power - pro-
hibit doubtful buying, selling and trading
in these bonds and certifo ;0s. Little
bodies Of men here and there-o. WIZ n
the Treasury Department knows--a.e
buying up Liberty bonds and man.pula,-
ing them for forcing down the price o.
bonds so that the interest rates on sue
ceeding bond issues will be higher"
The Senate Finance Committee, WIZ,
| apprised Of the action OF the House. de-
cided to drop consideration OF the rev
enue bill for the time being and will tass
| UP the McAdoo legislation tomorrow
Only brief consideration Is necessary, Z:
is believed. for the committee will b
prepared to submit the bill TO the Senate
Chairman Simmons just before ai-
journment OF the Finance Comnittees
| hea 10
gested to the members that IL was ey-
pected the bill would be passed by ia
House before adjournment.
I'm that event" Senator Simmons e. d,
lit will be my desire to have the bill he
fore the committee. where believe only
a few hours will be needed for its con.
| sideration."
Senators Lodge (Mass) and Robinson
(Ark.), who will have to attend ,fe
specially called meeting of the Commit
tee on Foreign Relations. asked 70 be
recorded as present for the purpose 0.
counting a quorum Of the Finance Com
mittee, which iEsures fun attendant
and the probable unanimously favoratl:
report upon the measure when the Se.,
ate reconvenes Tuesday.
| Re, -eseHtative Cannon Gll) suE
gested that, instead OF exemptinS L.
erty bonds from all taxes up to =.
limits set in the McAdoo measure, r,
outstanding Liberty bonds and T..
next issue be converted to per cent
bonds entirely free OF all taxes.
Longworth Urges Higher Rate.
, Representative Longworth (Ohiol. 80
last speaker, showed the House thc-t
are three ways 10 bring Liberty bon =
to near parity on the exchanges al
hold them there. These ways are Z;
raise the interest rate, 10 raise the no.
NAL tax on incomes and TO exenp; 80
income from the bonds from taxes {,
, certain extent.
! Mr.. Longworth said he thought Z
| would be advisable TO increase the Il,
, terest rate from Ala per cent. 10 q
higher rate.
For some time agreed with NJ
Cannon that the best thing 10 do VOL
be TO have a 3 per cent. bond free Of al
taxes" said Mr.. Longworth, ''hu. J TOW
agree with the gentleman from Texas
Mr. Garner, that II would be iaaiv.s4t
, 10 add TO the tax free obligations - z d
Government. We must do sOmCE.~-
though. and am thoroughly convinced
that the thing to do is 10 proceed al
the lines laid down in this bill.
, However" Mr., Longworth cori'0p'+
, "the credit for the idea is really dae -
Mr. Cannon OF Illinois In the s.-0"'
Liberty Loan act he offered an am &c
ment 10 exempt from surtaxes ana eI'
cess profits taxes the income from S.''
: 900 worth OF these bonds, hut the How"
r cut this amount down 10 5000 We SO
now proceeding along those lines NJ,