The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1919-02-20
TEN BILLIONS MUST Bf
RAISED FOR OUR DEBTS

NiNHH lIAINuhJ Aolu iNt NWNa' way
and means committee that il WAS ap.
parent "somethng mus, be done 10
make the bonds or notes Of the Lin
erty lean more attractive than their
predecessor" and asked that con
gress give him authority to fix inter
est rates and determine exemptions
from taxation. according 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
exceed 81 100000, and that the
purposes for which the treasury may
make loans to foreign governments
be broadened
Mr. Glass said both provisions were
necessary to restoration Of the coun-
try's foreign trade and would be mu-
tually helpful to this government and
the allies.
Mr. Glass told the committee that
at the rate disbursements were being
made, II was apparent that only a
radical reduction in the remain ny
months of the fiscal year could bring
the years expenditures within the
$4,000. 900. 900 which former Secre
tary McAdoo mad hoped would cover
the governments expenses.
Cash disbursements during the irst
ten days Of February showed very
gratifying Decrease" but Mr.. Glass
pointed out that heavy payments on
informal contracts were being held in
abeyance until congress acted on
pending legislation
Under these circumstances and
with a floating debt Of $4,000. 0O0.-
600 IN treasury certificates, increas
ny approximately 81 400, 0O0,O 900 a
month. he thought the committee
would not be surprised by his recon
nendation for authorization for an
additional s5.0oo.O0O.OOO issue Of
bonds.
There remain lnissued under pre-
vious legislation slightly in excess Of
$1,000, 600, 900.
1T is needless 20 say thar the
treasury does not contemplate the
issue p connection with the Victory
loan Of any such amount Of bonds
as s10,000.00o Geo" Mr.. Glass said.
adding that ia seemed wise TO sug-
gest an increase to figure which
would seem 20 represent the maxi
mum possible amount Of the bonded
debt growing out Of the wnr"
AS an alternative to the issue Of
bonds. he suggested authorization Of
an issue Of notes limited 20 $4,000
600 600 and an increase IN the max
imum amount Of treasury certificates
from $1,000 900. coo TO $4,000. 600
900. not that the three items should
be at all cumulative. but that the
treasury should have the power 70
finance the governments operations
IN he nest economical way
" u may be desirable to adopt all
OF these methods in succession Mr.
Glass said.
Conditions in April might be such
that il would be wise 20 issue a short
time note bearing relatively high
rate Of interest and carrying with il
the privilege o. conversion into bonds
bearing interest az lower rate and
having a longer maturity.
"On the other hand, IL might be
desirable TO make an alternative Of
fer Of bonds and notes, leaving the
choice between the
two
Il am by no means convinced that
conditions viii be such in April as to
necessitate an increase in the inter
est rate over that provided in existing
law to an important extent. IL at all,
yet II were Obliged to determine
now what is the lowest rate at which
! could undertake with certainty 70
finance the requirements Of the gov
arnment when the issue is offered in
April. should be obliged to name a
maximum rate much higher than that
which. II developments are as favor
able as ! expect they will be in the
interval, will. hope, be sufficient TO
Float the loan.
"Thc floating debt represented by
reasury certificates now outstanding