Omaha daily bee., 1919-02-11
May INCREASE
VICTORY LOAN
TO TEN BILLION
Secretary Glass Asks Power
to Determine Interest of
Victory Loan; Would Issue
Treasury Notes.


Glass today asked congress to in
crease the amount of Liberty bonds
authorized but unissued to approx
mately $l0,000,000000 and to give
! him broad powers to determine the
interest rate and other terms of the
/ Victory Liberty loan to be hoated
late in April. He also sought per-
mission to issue not more than
$l0000,000,000 of treasury notes,
maturing within five years and ask
ed that the war finance corpora
ton be authorized for one year after
the declaration of peace to make
commercial loans on exports to fa-
cilitate foreign trade.
In letter to Chairman Kitchin of
the house ways and means commit
tee, Secretary Glass outlined the
broad policies which the treasury
hopes to follow in dealing with war
loans and other national financial
subjects of the readjustment period.
Submits Bill.
The secretary submitted draft of
a sbill which would carry out the
treasury's recommendations. Specif-
ically, this bill would accomplish
the following results:
Raise from $5,000,000,000 to $i0,-
000,000,000 the authorization for the
Victory Liberty loan and permit the
treasury to determine what part of
this sum should be sold.
Permit the secretary of the treas
ury to determine interest on bonds
maturing within 10 years, or the next
Liberty loan, instead of limiting the
rate to 4H per cent, as provided in
the present law.
Permit the issue of not more than
$l0000,000000 of interest-bearing
note-circulating notes, having ma
turtles from one to five years;
these might be sold along with
bonds of the Victory Liberty loan.
Exempt War Savings.
Authorize the issue of bonds and
notes payable at a premium.
Exempt war savings certificates
from income surtaxes.
Confer on the secretary of the
treasury authority TO determine the
tax exemption in respect to future
issues of bonds and notes, and to
enlarge tax exemptions of existing
Liberty bonds in the hands of sub
scribers for new bonds and notes.
Reopen the privilege of convert
ing 4 per cent Liberty bonds into
4Hs; this privilege expired last No
vember 9.
Create a 21z per cent cumulative
sinking fund for retirement of the
war debt ..
Extend the authority of the war
finance corporation to permit it to
make loans in aid of American COM
merce, supplementing the aid given
by the treasury on direct loans to
allied governments and in measure
relieving the treasury of demands
for such loans.
Permit the continuation of loans
to allies after the war
Except from income surtaxes and
profits taxes all issues of Liberty
bonds and bonds of the war finance
corporation held abroad.
GlVeS his NedSoIss
AS the reason for asking such wide
authority to determine terms of the
Victory Liberty loan, Secretary
Glass explained in his letter to Mr..
Kitchin that he could not determine
this far in advance, particularly be-
cause the country was in state OF
commercial and industrial readjust-
ment, what the terms should be in
April. Furthermore it is necessary
for congress to act before adjourn
ment March 4. s..H
"The Victory Liberty loan could
not be issued successfully now that
hostilities have ceased, within the
limitations imposed by existing
laws" said Mr.. Glass.
He also declared that restoration
of normal financial conditions in the
United States would be facilitated by
enactment of pending legislation
permitting liquidation of claims
arising under informal war contracts
and enabling the food administration
Ito protect the guarantees given by
the United States"