The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-09-14
HOUSE VOTES FOR
BOND EXEMPTIONS
Secretary of Treasury Autho-
rized to Stabilize Foreign
Exchange After War.
KITCHIN HINTS PLOT
Syndicate Buying Up Govern
ment Securities to dump"
Them and Force Higher
Interest Rate.

Washington. Sept. 15-By unani-
nous vote today the house passed the
bill to facilitate the sale Of the fourth
Liberty loan bonds by exem pting
from income surtaxes all individual
holdings up TO $4,000. The vote on
passage OF the bin was l49 to O. The
senate Is expected 10 pass the bill
early next week
Although Chairman kitchin. of the
ways and means committee. was OF
the opinion that the bill might be
put through the house without any
prolonged debate SO many differences
arose during the discussion that II
was necessary 10 give the entire day
over To the debate on the bill Several
amendments were adopted, one OF
which limits the authority OF the sec
rotary of the treasury in the matter
of stabilizing foreign exchange TO the
period of TWO years after the war
another amendment removed the re-
striction on the sale OF war savings
certificates so that more than 81, 600
may be sold a one time to one pur-
chaser.
The only signs of hostility TO the
bill developed over the provision
which gives the president authority
to investigate. regulate or prohibit
transactions in bonds or certificates
OF Indebtedness. Representative
Hayes. of California, a member OF the
committee on banking. objected
vigorously to this provision. He de-
4olared ii would make 1t impossible
for the holders of Liberty bonds 10
dispose of them when it became nee
essary to raise money He said en-
forcement of the provision would
mean confiscation OF private property.
that it would be an extra ordinary
grant of power to the president and
that such power over the individual
bondhplders Ia not necessary
Mr.. Hayes offered an amendment TO
strike out the provision authorizing
the prohibition OF the sale OF bonds
He won by the close vote OF Sd TO So
while the house was sitting in com
mittee of the whole.
Later the house reversed this &C
ton after a strong speech by Char
man kltchin. the language stricken
out on Hayes motion being restored
10 the bill by vote of 1l6 10 al
Mr.. kitchin told the house there
were a good many things connected
with transactions in Liberty bonds
which he was not permitted to spea X
Of, hut which had come 10 his knowl-
edge from treasury officials. He de
clared. however. that there are syndi-
Gates IN certain parts OF the United
States which are trying TO buy up
Liberty bonds OF all issues for the
purpose of dumping them on the
market. even at less than was paid for
them. so as to force down the price
of the bonds and compel the govern
ment to increase the interest rate on
all its bonds TO : per cent. per cent.
or even per cent"
MFR. Kitchin charged that the trans
actions of the dealers are known 10
the treasury department and ii was
for the purpose of curhing them that
the change in the law is asked.
Democratic as am, partisa n
democrat as I have always been UT
to April s, 1877, would not be will
ing to give the president a single BIT
of power he should not have" con-
tinued Mr.. Kttchin. but this is a
power that is absolutely necessary tc
protect the holders OF Liberty bonds. y
Representative Glass, OF Virginia
chairman of the committee on bank
Ing. said he thought the section au-
thorizing the secretary of the trea.
sury to stabilize foreign exchange
should have been referred to his com
mittes. but offered no objection ia
passage of the hill