The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-18

committee is strongly opposed to giving
the powcr to Secretary Glass to FIX the
conditions under which the loan is to be
put out.
The Ways and Means Committee was
unable TO find ont exactly what plans
,he Administration and the Treasury
department have in mind for the loan
However several suggestions were made
TO Mr.. Lef1ingwell as to the proper con,
dtiors under which the next bond issue
should he sold and these suggestions
Mr. Ieflingwell will submit to Secretary
Glass and his assistants. obtain their
views and appear before the Ways and
Means Committee again tomorrow to
tell the members what the Administra-
ton views are.
FairchiId's Proposal.
Representative Fairchild IN. W sug-
sested conditions under which bonds
should he sold and asked Mr.. Leffingwell
his opinion. Mr.. Fairchild said:
Il have suggestion to make at this
time which I previously submitted to
Secretary McAdoo-that of compelling
every body in the United States who has
taxable responsibility to subscribe for
Liberty bonds TO his taxable RESPONSE
hilit" Furthermore. I suggested to him
ord Of all people who subscribed for
bonds and then sold them.
"My idea IN making this suggestion to
Secretary McAdoo was to prevent a class
Of people who are nothing less than
spurious patriots from making big bond
subscriptions and then at the first OPP
portunity dumping their bonds on the
market and breaking the market. 1t Is
pretty generally known that a German
syndicate has been operating with this
end in view.
why would IL not be equitable and
why would II not tend to prevent the
great expense necessary for the sale OF
bonds and the spectacular methods EN-
royed IN selling bonds to compel every
one TO take his pro rata share OF bonds?
81 make this suggestion for the rea-
son that I know of very rich people OF
my acquaintance who have never taken
Liberty bond and never will unless
they are compelled to. I should like
your judgment as to the SUGGESTION
In general terms Mr.. Lefingwell said
Re was inclined to think the plan would
not be feasible. although he did not COM
nit himself in opposition to IT,
Other Suggestions Made.
Several other suggestions were made
IN the Assistant Secretary, concerning
which he was asked to get the opinions
~ Mr.. Glass and his assistants. They
we're.
First, 81 per cent tax free bond
maturing after short time coupled
with a bond bearing interest at Az
per cent. with purchases OF bonds UP
70 100000 exempt from taxes for a
period of FIVE years, or purchases up 10
$4,000 exempt from taxation for a
nsTiod o. two years.
Second, issuance of 10000. 000. 900 In
certificates OF Indebtedness and issuance
~ $4,000 10000 in notes maturing in
not more than five years and not less
than one year with authority reposing
n the hands of the Secretary of the
Treasury to fix the rates of Interest
WITH the right reserved to the Govern
meOt N redeem the one year notes In
SIX months and the five year notes In
m" year II II is deemed advisable.
Third, authorization to the Secretary
- the Treasury to adopt either the first
- second plan but with the Limitation
hat not more than $4,000, 900 900 IN
o'fgstions In addition to those now ex
sting should be outstanding at any one
lime
Nlr. Lerlngwell's own opinion ex-
7-Nssed to the Committee was that none
~ the suggestions made was feasible
'lt he did not pretend to interpret the
views or the Secretary OF the Treasury
Excerpts From Testimony.
Tho Sun herewith presents for thu
INST time verbatim excerpts from tn,
'H''mony on cross-examlnation OF Sec
-'tary Glass Assistant Secretary LET
'nsNell and Eugene Meyer, Jr.. manag
'g director Of the War Finance Corpo
'a'ion, before the Committee on Way.
..d Means in hearings on the Victory
I'oerty Loan proposals OF the Treasury
apartment.
This examination followed presenta
''' by Secretary Glass OF his prepare,
'a'enent which was published in TIL,
saturday morning.
Nr Moore (Pa.): "This (the pro
unsel extension of the powers of tn
war Finance Corporat!on) is a new
Imposition. In your Judgment shout,
ne United States embark in the bust
"esS OF financing corporate or privat
interests in the foreign as well as tn
Domestic trader
Mr. Glass: II have seen It suggeste,
nav II would be an interference with pri
,"s enterprise and particularly an en-
.'"'Hmen' upon the privileges an,
'h.t"is OF private Ia. liking. Cf-cuurSs
ne W ar Finance Corporation would no
50 ont aud seek business. II privat
7NHing Institutions feel themselves en-
"'y 'apable of attending to this bust
'Ss and are anxious to engage in
e,e VIII be no question OF their abilit
70 do So"
% Mr. Moore; This may be part OF tn
"'ernments policy to encourage Gov
nhleht control not only of public utiii
eS nut OF private enterprise and to tina
N'e"t 1t Is highly important to u.s.
Psychological Liquidation.
VT Glass: "Mr. Moore, nobody in III
"orld Is more anxious to get back to tn
DIhsI processes OF private enterpris
! am, and think Mr.. Meyers ide
hat legislation Of this sort would b
MY largely psychological. II may us
may threadbare term"
MT sloan (Eeb): DO YOU caro- I
~ anything about what the policy c
followed" ~
mr. Glass: II can only say briefI
at ! think the Treasury has form,
."ed no policy with respect TO that ma
az yet and ] think It would be In
p to formulate policy until III
nsHce negotiations have proceeded 10
I'ester extent than Is apparent. becaus
,hlhk the amount and nature OF II
,ueInhties may have some bearing Q
snese questions OF conversion and Il
hturitieA Of the obligations OF foreig
"Aons 10 this country"