The sun., 1919-02-25
BILL FOR NEW LOAN
DELAYED In SENATE
Finance Committee to Decide
To-day Whether to Hold
Hearings.
POWER GRANTS APPROVED
Senator's Dislike to Give Glass
Authority to Fix Inter-
est Terms.
special Despatch 10 THE srN


WASHINGTON, Feb. 24-The bill to
authorize further issues OF Government
obligations TO the extent OF $1,000. 0oo,-
600 struck a snag in the Senate Finance
Committee to-day. Instead of the speedy
action on 1t which was expected even
in advance OF action on the bill by the
House the Senate committee postponed
until tomorrow morning even its de-
clson as TO whether 1t would hold hear
,nCs,
II II is decided to hold hearings Il
l. the death knell Of the authorize ton
FOR bonds or notes at this session. With
seven working days left. one OF which
will he used by the committee in de-
termining whether hearings will be held
decision to hold hearings would merely
he polite preliminary procedure for re-
fusing action on the bond issue and
making necessary an almost immediate
extra session OF Congress.
Compromise Plan Opposed,
Strong opposition developed to-day TO
the compromise plan for issuing notes
Of four different kinds on which the
Secretary of the Treasury would have
the power to fix interest rates to which
the House Ways and Means Committee
gave unanimous approval.
Senators OF the Finance Committee
Of both parties indicated that they in
tend to go very slow in granting addi-
tional wide powers to the executive
branch, particularly in financial legisla-
ton Some expressed the fear that II
was entirely possible that bad judgment
might 30 exercised by the Treasury De-
nartment in putting out too many notes
~ one character and too few of another
or that the interest rates on notes OF the
various kinds the House bill permits
chow foo wide range OF difference.
Members OF the Senate Finance Com
r1ittee made II plain that they intended
10 fight to the last minute against even
permitting the Secretary OF the Treasury
20 AK the rates of interest on the vari-
Gus kinds Of notes it is planned to issue
beginning in April They argued in
committee to-day that Congress should
fix the rates on all Of the kinds of notes
planned and also that the amount OF
each kind should be fixed by Congress
Underlying all of the specific objec-
tons made to the powers sought by the
Secretary of the Treasury is the general
objection to extending TO the executive
branch Of the Government broad powers
now reposed in Congress.
House to Rush Measure.
There is no change in the plan OF
Chairman Kitchn IN. c. to bring the
rote legislation before the House as
soon as the sundry civil appropriate or
bill is disposed of. probably tomorrow
Mr. Kitchin to-day submitted TO the
House his report on the legislation.
Mr. Kitchin pointed out that expendi.
lures for the fiscal year ending June 80
next, despite the wind up of the war last
November. are estimated to run to 49,
100000 900, while the receipts already
certain are only $4,000. 900. 900. leaving
deficit in receipts of $4,000. 600. 900. He
oointed out, though, that "out of abun-
dance Of caution we should authorize the
issue Of $1,000. 00o.o00 of notes, since
The excess over $1,000. 600. 900 doubtless
viii be required early in the next fisca
year"
The report explained the reason fol
providing for issuing short time notes in.
s'ead OF long time bonds follows:
Because Of the unsatisfactory condi.
Ton Of the bond market due to the un.
settled conditions here as we'll a:
throughout the world your COMMITTEES
Deems It preferable at this time to issu,
short time notes TO finance the needs Of
the Government rather than to authorize
further issue of long term bonds. TIL,
Treasury Department concurs in thi:
decision.
"lt is believed that such notes, shoult
It become advisable or necessary, car
he converted at or before maturity into
'onc time obligations OF the Government
bearing lower rates of interest than Il
'ong time obligations were issued a
present
Tax Exempt Holdings.
The complicated exemption privilege
or the various bond issues and OF thu
projected issue OF notes, the report ex
i.a'ned, would permit any one to holt
bonds OF the various issues and note
Of the projected issue in the following
amounts which would be exempt from
all income taxes and war excess profit
taxes:
Bonds absolutely tax free in addi-
ton to the ga First Liberty bonds,
IS 600
Fourth Liberty bonds. tax free until
two years after the termination of
the war, $4,000.
First Liberty bonds, converted :;
Second Liberty bonds, converted or
unconverted, and Third Liberty bonds