Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-02-19
VICTORY LOAN To
BE PUT ON ABOUT
APRIL Il; SEVERAL
FORMS TALKED Of
Short Term Notes, Maturing in
From One to Five Years, Is
Plan Finding Favor in KitCh-
ms Committee,
INTENSIVE POPULAR
CAMPAIGN EXPECTED
Secretary Glass Makes First
Official Announcement Of
Time; Treasury Must Have
Money at Early Date

feY MORNING IouRNAL SPECIAL -sAsso wreEl
Washington, Feb. 1S.-Short-term
notes, maturing in from ono to i've
years, would be offered in the forth
coming victory liberty loan campaign,
instead of long-torm notes, under II
tentative agreement reached today by
the house ways and means committee
to fix the terms of the loan by legis-
lation rather than to give Secretary
Glass wide discretionary powers to
determine them as he had asked.
At the same time Secretary Glass
in statement explained that the IN
tansive popular campaign would be
conducted as planned, regardless of
the terms arranged by congress, ana
that it would start not later than
April 2l. The secretary had asked
congress for authority to issue either
bonds or notes as market conditions
at the time warrant, but members of
tha committee concluded that a new
loan issue would necessarily carry
with It such high rate of interest
that financial markets might be adj
versely affected for some time,
several Plans Considered.
Under the tentative agreement of
the committee, reached in executive
session at which Assistant Secretary
Leffingwell of the treasury was pres
ent, Secretary Glass would be given
discretion OF issuing any one or sew
oral Of four kinds of notes to be pre-
scrf 5ed by the legislation. The quan
tity of these non-ncgotiable securities
would be limited to probably $1,000
600 600, of which the treasury now
plans to issue only about SIX billions
The principal features of each of
the four kinds of notes proposed
woud be as follows:
One class would be at a low rate
of interest, possibly four per cent,
and exempt from all federal taXation
one would he at a comparatively high
rate, possibly per cent and subject
to all federal taxes; q third would
bear a moderate rate of interest," a
per cent was suggested and he cx-
empt from normal income tax levies;
the fourth would be exempt from tax
alton up to a certain amount.
Denominations As Before.
These terms have not yet been de-
fined but officials said the proposed
alternatives would be satisfactory to
the treasury They cover all the pos
sible terms which the treasury might
choose even if it had broad discre-
n, III
ton the notes probably would cor
RESPOND. with past Liberty loans, rang
ing from $50 up Members of the
committee felt this would permit of
as wide a scale as in previous cam
paigns, as the short-term notes would
prove more attractive to the small in
vestors.
The ways and means committee
also decided tentatively not to in
crease the authorization for issuance
of bonds from about $4,000, 100000
to $10,000,O00,0 1000. This means that
the treasury still would have power
to issue up to five billions in Liberty
Bonds at the IA per cent rate of
the last two loans, ard at the same
terms Most officials believe that
these securities could not be floated
advantageously under new conditions
and consequently that the treasury
would not use any of the remaining
authorization at this time. 1t is pos
sible. however that some of the
notes to be Issued would be convert
ible in the next three or four years
into Liberty Bonds of longer ma
turity.
The draft of the proposed legisla
ton for the short term notes was
ordered by the committee, and its
experts began Immediately to con-
slider the plans for the new measure.
It is expected to be completed in
few days, with final action to be fol-
lowed shortly afterward by the com
mittee When the committees re-
port is completed, efforts will be
made by Chairman Kitchin to eXpe-
dite passage of the Legislation before
the adjournment of the present con-
gress.
Glass issues Statement,
Secretary Glass statement, issued
tonight after announcement of the
ways and means committees action.
follows:
"The Victory Liberty Loan cam
paign will begin not later than April
81. The require ements of the treasury
are imperative and cannot be financ-
ed without such a campaign. The
form and terms of the securities to
be issued remain to be determined.
tContinued on Page Two)