New-York tribune., 1919-02-11
Proposes
Liberty Loan
OF TO Billion,
Continued from page !

war debt. S'' Of 1.
Extend the authority of =. r.
Finance Corporation TO penn, MY We
make loans in aid Of America,.s ,s,s II
mlerce, supplementing the "A IA soa-
py the Treasury on direct To-. sHh
Allied governments, and in . ,vana L
relieving the Treasury Of ss'.asul.
for such loans. Oeiaas9
Permit The continuation of H.,
TO Allies after The war. u s0ss!
Exempt from income surt.xa
profits taxes ali issues q Of F''Ies ~ an
Bonds and bonds Of the War PEN FE;.oe'Il
Corporation held abroad - insA'
As the reason for asking such
authority TO determine terms :. 80 !.
Victory Liberty Loar, Sacretarv = ~ 90
explained in this Letter to Mr.. g;,a' .ss
that he could not determine =, '.a
IN advance, particularly because "s \ n
country was IN a state of conn.,. u
and industrial readjustment WIN. i.s'.,s y
terms should be in April. Furtbnrrss ~
1t IS necessary for Congress 'ta0l' - n
before adjournment, March 4 " &C.
THE Victory Liberty Loan co,,,,
be issued successfully now thai INV s"..s ~
ties have ceased within the i'm ;.sss sOsu'
imposed by existing laws" sad id'S1' u.
Glass. S''u at
He also declared that res.ors,;..
normal financial conditions 'i,'Ou ~ 1 o
United States would be facilitstas NJ N
enactment of pending regislation ~ y
mitting liquidation of claims a. gs'
under informal war contracts .na r,,s.l' u
abling the Food hdministrat;ansu nu q e.'
protect the guarantees given br !. y
United States" y VII
Mr.. Glass expressed hone tbsi j.
operation of the laws of sunnlv '.' ~,
demand regarding foodstuffs wanl. sls
soon cause reduction in the co', sV1s y.
llvlng. and warned against artificial "
tardation of the process Of fslg,.
prices and credit contractions. '''
Looks for Favorable Conditioo,
Buying will not begin and .,,;r,.
will not set in" he commented s,,'. ar,S
the community at large is satisfied Ss
prices have reached bedrock. '''
Il am sanguine enough to belr.
that 1t IS within the range of ths no,.
slble that so much may have been ~. s..
compllshed on the lines above indir,ss
before the expiration OF two month
from now. that the whole situation will
have been changed and that We nsy
look forward to the successful issus =,
the Victory Liberty Loan on term.
which to-day would seem quite imDo,
hiblc." f''
The proposed extension of powers d
the War Finance Corporation would 81
low the corporation for one year afts
the declaration of peace to make al
vances to business firms or expor+et
IN the United States up to the msrk,
value Of the goods exported. or :
banks which had made advances !,
those interests. The loans would ru.
Tor not more than five years. and Il
aggregate would be limited to sl0DO
100000. BY this means tho Treasur
hopes to stimulate foreign trade. whic-
IS now prevented because of the in
ability of foreign purchasers 10 psl
cash. The advances made to q BAN
would be limited to the unpaid balsnc
of loans previously made to the bus
ness interest. Ample security woul,
be required and interest rates woul.
be detern.ned by the corporation.
Extension of loans to Allies int
peace times also would serve to stinu
late foreign trade, the Treasury b.
lieves.
Through the sinking fund provist,
the Treasury annually might buy n'
right, redeem before maturity ora
on maturity Liberty bonds up y
per cent of the amount outstatag
one year after the end of the war. This
would establish real sinking iuia
which the United States has never fs.
for cancellation Of It's public debt