Bisbee daily review., 1919-02-19
Short Term Notes to Be Sold Instead of Bonds, Fifth
 Issue Securities Being Non-Negotiable Certificates
Four Kinds of Notes Pre- scribed, Glass to Have Dis cretion of Placing Any Kind on Sale in Big Campaign
By Review Leased WIre)

{By Review Leased Wire)
 WASHINGTON, Feb. 1S-Short term notes, maturing in from one to five years, would be offered in the forth coming Victory Liberty loan cam paign, instead of long term notes, un- der a tentative agreement reached to- day by the house ways and means committee to fix the terms of the loan by legislation rather than to give Sec retary Glass wide discretionary DOW CTS to determine them as he had asked
 At the same time Secretary Glass in a statement explained that the in- tensive popular campaign would be conducted as planned, regardless of the terms arranged by congress and that u would start not later than April 21 The secretary had asked congress for authority to issue either bonds or notes as market conditions at the time might warrant, but mem bers of the committee concluded that a new loan issues would necessarily carry with it such high rate of inter est that financial markets might be adversely affected for some time
 Four Kinds Planned
 Under the tentative agreement of
 
 session at which Assistant Secretary LeffingTen of the treasury was pres ent, Secretary Glass would be given discretion of issuing any one or sev- eral of four kinds of notes to be pre- scribed by the legislature The quan- tity Of these nOn-negotiable securities would be limited to probably S7,OOO,- 100000 of which the treasury now ex- ~0 -r- e O0O
 The principal features of each of the four kinds Of notes proposed i. would be as follows:
 One class would be at low rate Of interest, possibly per cent and ex- empt from all federal taxation. one would be at a comparatively high rate. possibly , per cent and subject to all federal taxes; a third would bear a moderate rate Of interest," 14 per cent was suggested-and be exempt from normal tax leVies; the fourth would be exempt from taxation up to a certain amount
 Terms Undefined
 These terms have not yet been de- lined, but officials said the proDosed alternatives would be satisfactory to the treasury They cover all the pos s1ble terms which the treasury might choose even if 1t had broad discretion It was explained In denomination the notes probably would correspond with past Liberty loans, ranging from $50 up Members of the committee felt this would permit Of as wide a scale as in previous campaigns as the short term notes would prove more attrac- tive to the small investors
 The ways and means committee also decided tentatively not to increase the authorization for issuance of bonds from about S5.OO0, ,OOO. 900 to SIO OOO OOO,OOO- This means that the treasury still would have power to issue up 10 OOO,OOO.0OO in Liberty bonds at the 1-4 per cent rate of the last two loans, and with the same terms. Most officials believe that these securities could not be f1oated advantageousIv under new conditions, and cOnseouenf- ly that the treasury would not use any or the remaining authorization at this time IL is possible, however. that some of the notes to be issued wouId De convertible in the next three or four years into Liberty bonds of long. CT maturity
 Date Announced.
 The draft of the proposed legislation TOT the short term notes was ordered Dy the committee, and its experts be- gan immediately to consider the plans TOT the new measure. It is expected to be completed in a few days. with final action to be followed shortly aft, ervard by the committee. When the committees report is completed. eff forts will be made by Chairman Kitch in to expedite passage of the legisla
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