The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-02-19
VICTORY LOAN IN
SHORT TERM NOTES
Campaign to Start Not Lat
er Than April p,
Says Glass
COMMITTEE ALLOWS
FOR FOUR PLANS

Under Agreement Reached. Yesterday
Secretary of Treasury Will Be Given
option of Issuing Whichever Variety
He Considers Best,
!. WASHINGTON, Feb. 1885, Short Term
notes. maturing IN from one to hre Yeas,
would beloffered N the forthcoming Vie.
tory. Liberty Loan Campaign, instead Of,
long.term notes, under a tentative agrees
mcnt reached yesterday by the house ways
aud means committee TO fix the. terms Of
tie loan by legislation rather than to
give Secretary Glass the wide discretion
AIRY powers he had asked
At the same time Secretary Glass, in
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 tnan April 81
The secretary had, asked congress for
authority to issue either bonds or, notes
as market conditions at the time might
warrant, but members of the committee
concluded that new loan issue would
necessarily carry with it such a high rate
OF interest that financial markets might
be adversely affected for some time.
Under the tentative agreement of the
committee Secretary Glass would be given
discretion of issuing any one or more of
roar kinds of notes. to be prescribed by
the legislation. The quantity of these
1cn negotiable securities would be limited
to PROBABLY s5,000,G0o,O01, of which the
treasury now plans TO issue only about
IS, 600 0O0,O0o. 81
The principal features OF each OF the
four kinds of notes proposed would &c
as follows:
One class would be at low rate Of III,
terest, probably percent, and exempt
IRON all federal taxation; one would tic
al a comparatively high rate, possibly }
per cent, and subject to all federal taxes;
third would bear a moderate rate III
Intersections and hale was suggested
and be exempt from normal tax levies
II fourth would be exempt from taxation
up to a certain amount.
The terms have not yet been defined,
but treasury officials said the proposed
alternatives would satisfy the treasury de
apartment. They cover all the possible
terms which the treasury might choose
I even II it had broad discretion, it was
| eApained
In denomination the notes probably
would correspond with past Liberty loans
ranging from $50 up.
| The ways and means committee also
! decided tentatively not TO increase thC
| authorization for issuance of bonds Tn.
l treasury still would have power 10 issu,
4 up TO 5000, 009,000 in Liberty bonds, a
! the four and a quarter rate of the last tw,
i loans, and with the same terms. Mos
4 officials believe that these securities coult
4 not be ioated advantageously under new
.I'conditions, and consequently that til
u treasury would not use any OF the /,
manning authorization at this time
lis possible, however, that some uf tn
notes TO be issued will be convertible ii
the next three or four years into Libert,
bonds of longer maturity.
The draft OF the proposed Legislation
WAS ordered by the committee sand its e,
perts began Immediately to consider til
plans for the new measure 1t is 6
} perts began Immediately to consider th
i When the committees report is complies
, cd, efforts will be made by Chairman HI
/ chin to expedite passage of the leglslatio
} before adjournment OF the present. col
, gress
Secretary Glass statement. issued las
night after announcement of the way
and means committees action, follows:
'fThe Victory Liberty Loan campaig
will begin not later than April q: II
/ requirements OF the treasury are lmpcr
tive and cannot be financed without sue
campaign The form and terms of Il
securities to be issued remain to be d
termined Whether they be bonds
notes, it is absolutely essential .that Il
widest possible measure of distribute
be- realized.
This will necesstate campaign
the same. character as that conducted
s the past. through the existing Libcrt
{ Loan Organizations. They have pledg,
]. again their united support il order tn
the Nicterss Liberty Loan bonds OF not
may be distributed as widely as possib
among the American people.
i This furnished the first official mott,
3 OF the date OF the campaign, and d
y posed of reports that an issue Of not
Il would be hoated mainly among banker
rather than the general public
Is Even if congress finally adopts the tie
tatiye plans of the house committee, Il
i treasuly's plans for the next loan wou
not be materially changed officials
q clared, Secretary Glass had intended
: Il nuke the bonds of short maturity, b
4 had asked for authority. to issue Nd
81 $4,000 00o,000 OF notes in addition rat
Il and other terms OF both bonds and not
to he determined by the treasury und
=ZI llarket authority by congress.
81 Assistant Secretary Leftingwell, {
: 4 charge of fiscal matters, explained to t
Z5 house committee the general terms viii
e the treasury bad considered in case t
e blanket authority We're given 1t W
g these terms which IN effect the commit
= desires TO freseribe aefn;telv in Inan /