The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-20
COMMITTEE VOTES
FOR Big NOTE ISSUE
Permits Glass to Issue Four
Glasses, but Raises Exemp-
ton to $4,000.
HOUSE MAY ACT TO-DAY
Secretary Of Treasury Is Left
Free to Fix Rates on
S7,OOO,OOO,OO0.
spscfa, Despatch to TIE sus.

WASHINGTON, Feb. 1s.--The ways
and Means Committee to-day voted TO
accept tho compromise between the Ad-
ministration plan to put into the hands
of tho Secretary of the Treasury fuii
discretion In fixing the conditions under
which the next obligations Of the ma
ton to pay war expenses should Do
issued and the Congressional plan 70
hold all OF those powers In the hands
Of Congress.
Members OF the committee consistently
refused to state whether opposition 70
the compromise was carried to the point
of votes being cast against the plan, but
II was declared that the report OF the
committee would be unanimously In
favor Of the plan.
This plan, which calls for issuing
notes totalling $1,000, 100000 instead OF
issuing more bonds. was set forth In its
entirety exclusively in THE Sun to-day.
Tho only change made by the commi.
tee was to provide that one class Oh
notes be totally exempt from taxation
up to $4,000 to each purchaser instead
OF $40, 900, as was proposed.
AS the committee approved the con-
ditions under which the notes are 70 be
| issued the Secretary OF the Treasury
IL left free hand In fixing interest,"
rates on the various kinds of notes which
may be issued. as THE SUN stated would
| be the case The plan approved by the
| committee to-day will permit the Sec
| rotary of the Treasury to issue notes
| conforming with any or all Of the fol-
| lowing conditions:
Notes the income Of which Is entirely
free OF Federal taxation.
| Notes the income OF which Is subjec,
to the income tax and war excess profits
taxes.
Notes the income Of which is subject &c
the income surfaces and the war excess
profits taxes.
Notes with $4,000 to each purchase,
entirely exempt from Federal taxes bu
with the income from notes held in ex
cess Of $4,000 subject to income sur
taxes and war excess profits taxes
| II Is planned to present TO the House
tomorrow. II the legislative situation
| permits, the compromise plan agreed
upon by the Ways and Means Commit
tee and ask speedy action. With al
unanimous report from the Ways ant
Means Committee It is extremely doubt
full IL there will be very strong opposi
ton from the House itself and 1t II
generally conceded that the authorize
ton for the notes will be forwarded t
the Senate soon after II is brought VI
In the House.
Debate on the proposed appropriation
OF $3.50. 100000 for n new revolvin,
fund for the Railroad Administration
may interfere with this plan. however.
The Secretary OF the Treasury will de
termine many Of the terms under which
the notes are to be sold. II Is under
stood It will not be obligatory upon TIL
lTreasur Department to offer the entir
$1,000 900, 600 issue for sale at one time
The procedure probably will be to pu
out four notes under tle various condi
lions permitted in order TO protect tn
market price Of outstanding issues O
Liberty bonds. It was repeatedly state,
to-day that the Administration is thor
oughly cognizant of the danger o
depressing the price of previous wa
bonds by the issuance of new obligation
nov and that everything possible to pre-
vent Il would be done