The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1919-02-18
LOAN MUST
BE MADE ATTRACTIVE
Not Wise to Attempt to Fix Interest
Rate and Duration Now With Con-
ditions That Will Prevail in
April Still Worry Uncertain.

, Washington, D. c., Feb. 14.-Sec
rotary Glass told the house ways anc
means committee that it was appar
ent "something must be done te
make the bonds or notes Of the Vic
tory Liberty Loan more attractive
than their predecessors" and asked
that congress give him authority tc
fix interest rates and determine .ex'
empsions from taxation according tc
financial conditions existing when
tho loan is hoated in April.
The head Of tho nations financial
system also urged that authority be
given the war finance corporation to
make advances to exporters not to
exceed $1,000, 100000 and that the
purposes for which the treasury may
make loans to foreign governments
be broadened. Mr.. Glass said both
provisions were necessary for restor-
alton of the country's foreign trade
and would be mutually helpful to
this government and the allies.
Mr.. Glass told the committee that
at the rate disbursements were being
made it was apparent that only a
radical reduction in the remaining
month of the fiscal years could bring
the years expenditures within the
$1s,OOO,000,000 which Former Sec
retary McAdoo had hoped would
cover the governments expenses.
Cash disbursements during the first
ten days of February showed q
Every gratifying decrease" but Mr..
Glass pointed out that heavy pay
ments on informal war contracts
were being hold in abeyance until
congress acted in pending legislation
affecting them. Under the eircum-
stances and with a floating debt Of
$4,000, 1000 in treasury certificates in
cressing approximately $1,4oo,000,-
600 a month he thought the COM
mittee would not be surprised by his
recommendation for authorizations
for an additional s5,OOO,OOO issue Of
bonds. There remain unissued un-
der previous legislation slightly in
excess Of s5,O0O,OO0,OOO
Not Ten Billion.
'''It is needless to say that the treas
ury does not contemplate the issue
in connection with the Victory Lib
erty Loan of any such amount Of
bonds as $4,000, O,ooo,ooo," Mr.. Glass
said, adding that cit seemed wise to
suggest an increase to a figure which
would seem to represent the maxi
mum possible amount Of the bonded
debt growing out of the war;"
As an alternative to the issue of
bonds, he suggested authorization of
an issue of notes limited to S10,000,-
100000 and increase in the maxi
mum amount of treasury certificates
from $4,000, 100000 to $1O,OOO,OO0,-
900, not that the three items should
at all cumulative, but that the
treasury should have the power to
finance the governments operation
in the most economical way.
1t may be desirable to adopt all Of
these methods in succession, Mr..
Glass said. Conditions in April might
be such that it would be wise to issue
a short time note bearing a relative
ly high rate of interest and carrying
with it the privilege of conversion
into bonds bearing interest at a low
er rate and having longer maturity.
On the other hand it might be desir-
able to make an alternative offer, of
bonds and notes leaving the subscrib-
er choice between the two.
81 am by no means convinced that
conditions will be such in April as to
necessitate an increase in the inter-
est rate over that provided in exist
ing law to an important extent, if at
all, yet if I were obliged to deter
mine now what is the lowest rate at
which could undertake with GER
ainty to finance the requirements of
the government when the issue is