Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-02-19
U.S.NOTES MAY
PLACE or
VICTORY BONDS
Short Term Issue for Next Liberty
Loan Is Urged-Csmpaign
Opens In April

washington, D. c., Feb. 1s.-Short
term notes. maturing in from one
to five years, would be offered In
the forthcoming Victory Liberty
loan campaign. instead of long term
notes, under q tentative agreement
reached today by the house ways
and means committee to fix the
terms of the loan by legislation
rather than to give Secretary Glass
wide discretionary powers to de-
eermine them. as he had asked.
At the same time Secretary Glass
IN a statement explained that the
intensive popular campaign would
be conducted as planned. regardless
Of the terms arranged by congress,
and that it would start not later
ty[n April 81.
The secretary had asked congress
70 issue either bonds or notes. as
market conditions at the time
might warrant, but members of the
committee concluded that a new
Joan issue would necessarily carry
with Il such a high rate of interest
that flnHncia markets might be ad-
Under the tentative agreement of
Ehe committee Secretary Glass
would be given discretion of issu-
ing any one or several of four
kinds Of notes, to be prescribed by
the legislation. The quantity of
these nonnegotiable securities
would be limited to probably ST.
000, 10000 Of which the treasury
now plans TO issue only about S.
100000. 900.
The principal features Of each Of
the four kinds of notes proposed
would be % follows:
One class would be at low rate
of interest, possibly per cent, and
exempt from all federal taxation;
<ne would be at comparatively
hfNh rate, possibly 8 per cent, and
subject to all federal taxes; a third
would bear a moderate rate OF In
terest-4iA per cent was suggested
and be exempt from normal in
como tax leyies; the fourth would
be exempt from taxation up to a
certain amount,
These terms have not yet been
defined, but treasury officials said
the proposed alternatives would
satisfy the treasury department.
In denomination the notes prob
ably would correspond with the
past Liberty loans, ranging from
$50 uD.
The ways and means committee
also decided tentatively not to in
crease the authorization for issu-
ance of bonds from about $5,00O,-
coo, 900 to $4,000, 000,0 900. This
means that the treasury still would
have power to issue up to five bill
Hons in Liberty bonds at the Az per
cent rate Of the last two loans, and
with the same terms. 1t is possible |
that some Of the notes to be is !
sued would be convertible in the |
next three or four years into Lib |
erty bonds of longer maturity.
The draft OF the proposed legts- !
Iation for the short term notes was
ordered by the committee, and its
experts began Immediately to con-
slider the plans for the new meas
ure.
Secretary Glass statement, Is
sued tonight after announcement
oSyThe ways and means committees |
action, said:
paign will begin not later than |
April q. The requirements Of the |
treasury are imperative and cannot |
be financed without such cam |
paign. The form and terms Of the |
securities to be issued remain to
be determined.
whether they be bonds or notes, |
Il is absolutely essential that the
widest possible measure of distri- |
button be realized. This viii neces-
state a campaign Of the same char |
acter as that conducted in the past |
through the existing Liberty loan /
organizations. They have pledged |
again their united support in order /
that the Victory Liberty loan bonds !
or notes may be distributed as wide |
" as possible among the American
people"