The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1919-02-20
VICTORY LOAN
PREMIUM BONDS
Secretary Glass Wants Power
10 Fix Interest Rate and
Tax Exemptions.
MUST Be MADE ATTRACTIVE.
Asks That War Finance Corporation
Be Allowed Fund Of About ST..
ooo, o0o, eco $500 Floating Debt
Must De Refunded,
MUST Be MADE ATTRACTIVE.

Washington. - Secretary Glass told
the House Ways and Means Commit
tee that II. was apparent something
must be done To make the bonds or
Dotes of the Victory Liberty loan more
attractive than their predecessors,
and asked that Congress give him au'
thority TO hx interest rates and deter
mine exemptions from taxation accord
Ing to financial conditions existing
when the loan Is fioate'l In April.
The head OF the nations financial
system also urged that authority be
given the War Finance Corporation To
make advances 10 exporters not TO eN-
coed 81 ,0o0,0o0, and that the pur-
pose for which the treasury may make
loans 10 foreign governments be
broadeued. Mr.. Ginss said both pro
visions were necessary 10 restoration
of the countrys foreign trade ana
would be mutually helpful 10 this gov
ernnent and the allies.
1t Is needless TO say that the treas
ury does not contemplate the issue III
connection with the Victory Liberty
loan Of any such amount OF bonds as
$1,000, 100000" Mr. Glass said, add
ing that 'it seemed wise TO suggest an
Increase TO o figure which would seem
TO represent the maximum possible
amount Of the bonded debt growing
out Of the war
AS IN alternative to the issue OF
bonds. be suggested authorization or
an issue Of notes limited to Sl0Oo0,-
OOOOO and an increase In the maxi
mum amount Of treasury certificates
from $1,000, 900 TO $l0,O00Wo,ooO,
not that the three Items should be at
all cumulative, but that the treasury
should have the power to finance the
governments operations In the most
economical way.
1T may be desirable 70 adopt all OF
these methods in succession, Mr..
Glass said. Conditions In April might
be such that 1t would be wise to issue
a short time note bearing relatively
high rate OF interest and carrying with
II the privilege Of conversion Into
bonds bearing Interest at lower rate
and having a longer maturity. On the
other hand, It might be desirable to
make an alternative offer of bonds
and notes, leaving the subscriber
choice between the two.
IL am by no means convinced that
conditions will be such In April as to
pecessltate an increase In the interest
rate over that provided In existing law
to an important extent. II at all. YET II
! were obliged to determine now what
Is the lowest rate at which could un-
dertake with certainty to finance the
requirements OF the government when
the issue Is offered In April ! should
be obliged to name a maximum rate
much higher than that which, II devel-
opmeDts are as favorable as ! expect
they will he in the Interval, VIII. !
hope. be sufficient to float the loan.
"The. floating debt, represented by
treasury certificates now outstanding
and TO be issued In the interval before
the Victory Liberty loan is onered'
must be refunded, and bonds or notes
must be sold to an amount SUFFICIENT
10 accomplish this purpose. To with
hold from the secretary Of the treasury
the power to issue bonds or notes bear
Ing such rate Of interest us may be
necessary to make this refundlng pos
sible might result In catastrophe
To specify In the act the maximum
amount OF interest at q figure sum-
ciept TO cover all contingencies would
be costly, because the maximum would
surely he taken by the public as the
minimum"