Bisbee daily review., 1919-02-14
MUST MAKE VICTORY LIBERTY LOAN MORE
 ATTRACTIVE" l" GLASS
Secretary of Treasury Seeks Wide Powers in Fixing
 Rates of Interest
By Review Leased Wire)


 WASHINGTON, Feb. 13.-Secretary Glass today told the house ways and means committee that it was apparent something must be done to make the bonds or notes of the Victory Liberty loan more attractive than their prede cessOrs" and asked that congress give him authority to fix rates and deter mine exemptions from taxation accord ing to financial conditions existing when the loan is floated in April
 The head of the nations financial system also urged that authority be given the war finance corporation to make advances to exporters not to eX- ceed S1 900 900, 900 and that the pur- poses for which the treasury may make loans to foreign governments be broadened- MT. Glass said both provisions were necessary to restOra- tion of the cOuntry's foreign trade and would be mutually helpful to this gov ernment and the allies.
 MT. Glass told the committee that at the rate disbursements were being made, it was apparent only radical reduction in the remaining months of the fiscal year could bring the years expenditures within the 5000, 900 900 which former Secretary McAdoo had hoped would cover the governments expenses.
 Decrease is Shown
 Cash disbursements during the first ten days of February showed very gratifying decrease" But MT. Glass pointed out that heavy payments on in formal war contracts were being held in abeyance until congress acted on pending legislation. Under these cir cumstances and with floating debt of S5,000, 100000 in treasury certificates increasing approximately s1,4OO, ,O0O,- 900 a month, he thought the commit tee would not be surprised by his re- cOmmendation for authorization of an additional S5,0OO.OOO,00O issue of bonds. There remain unissued under previous legislation slightly in excess of S5,OOO.OOO.OOO.
 ''It is needless to say that the treasury does not contemplate the is sue in connectoion with the Victory loan of any such amount of bonds as S10, 0,0OO, 100000" MT. Glass said. adding that fit seemed wise to sug- gest an increase to a figure which would seem to represent the maximum possible amount of the bonded debt growing out of the war"
 OIIcFS HiLcF0dLiNc
 As an alternative to the issue of bonds, he suggested authorization of an issue of notes limited to S1O.O0O,- OO0.OOO and an increase in the maxi mum amount of treasury certificates from SS,OOO, 100000 to S1O.0OO,OOO, 900, not that the three items should be at all cumulative, but that the treasury should have the power to finance the
 
 economical way
 Tt may be desirable to adopt all of these methods in succession" MT. Glass said. Conditions in April might be such that it would be wise to issue short time note bearing a rela- lively high rate of interest and carry ing with it the privilege of conversion into bonds bearing interest at a lower rate and having a longer maturity. On the other hand it might be desiT- able to make an alternative offer of bonds and notes leaving the subscrib- CT a choice between the two"
 Exemptions Proposed
 Mir Glass appeared before the com 1nittee in executive session and his statement later was made public at the treasury department He was ac-
 
 Leffingwell and RathbOne. Commit tee members said that throughout the discussion with the officials many questions were asked regarding tine broad powers sought. The members said it was apparent that approval would not be given for all the auth Ority that was asked
 Exemption from taxation to be car ried by the new issue, MT. Glass said, would not be greater than that con- ferred in the first Liberty bond act nor less than exemption from state and local taxes.
 Mir. Glass added that it was essen tial also to devise some plan for pro- tecting the holders of existing Liberty bonds. suggesting that additional ex- emptions from taxation be given those who subscribed to the new issue.
 Immediate steps to set up a sinking fund for the retirement of the war debt was recommended