The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-23
$7,OOO,OOO,OOO
NOTE LOAN BILL
REPORTED OUT
Measure Will Come Up for
Action in the House
Late on Tuesday.
4 SERIES AUTHORIZED
Nav Be Converted at Par to
Any Others of Same
Date of Issue.
PROVIDES RETIRING FUND
New Provision Gives War FL
nance Corporation Power
to Aid Foreign Trade.
PROVIDES RETIRING FUND
Special Despatch to TIE suS.

WASHINGTON. Feb. 22.-The Ways
and Means Committee to-day re-
ported out the authorization for issu-
ing Federal notes amounting to $7.ooo.-
100000, and will bring It before the
House for action late on Tuesday.
As stated in THE Sun authority is
given the Secretary of the Treasury
to issue the notes in any or all of four
series. One series would be exempt,
OF all except estate or inheritance
taxes. Another would permit the as
sessment of income surtaxes and war
excess profits taxes. The third would
exempt the interest Of $4,000 of notes
to each purchaser from all taxation.
but with the balance Of the interest
subject to income surtaxes and war
excess profits taxes. The fourth
would have assessed against the inter-
est of all estate. and inheritance taxes
and all income and war excess profits
taxes.
No Circulation Privilege.
The authorization provides that II
notes surrounded by more than one
OF the sets OF conditions bear the same
date Of issue they may be converted
at par to any other series under the
same issue date. It is specifically pro-
vided that none Of the notes bears the
circulation privilege.
Provision is made in the bill reported
today that the interest received since
January on bonds OF the FIRST Liberty
loan oonverted, the second Liberty loan
converted or unconverted the third and
fourth Liberty loans, the principal OF
which does not exceed the aggregate of
$4,000 10 any one purchaser, shall be
exempt from income surtaxes and war
excess profits taxes. In addition to this,
tho bill provides that the interest re-
ceived since January 1 on not exceeding
$4,000 OF the bonds named above shall
be exempt in the same manner as just
shown. with the provision that no owner
Of such bonds is entitled to this exemp-
ton on the interest from earlier bond is
ses II the bonds exceed three times the
amount OF notes of the coming loan.
Amount OF obligations Raised.
To permit an issue of $1,000. 900. 900.
The amount OF obligations permitted to
be offered, provided in the Third Liberty
Bond Act is raised from eight to ten
billion dollars.
The bill also provides that the Treas
ury Department may continue the privi-
lege OF converting per cent bonds of
the first Liberty loan converted. and 4
80 hn ihar ~
loan into Az per cent bonds. which privi-
eye expired November 9. last.
The bill also provides for creating an
sccumulative sinking fund for the re-
tIrement of bonds issued under all pre-
vious authorizations and notes to be
issued under this one which are out
standing on July /. 1920. This fund
shall be available until all bonds and
notes are retired and obligations re-
deemed from this fund may not be
reissued
The law providing a permanent an
nual appropriation or l per cent. OF the
entire debt of the United States to he
set apart as a sinking fund would be
repealed by the bill reported to-day.
Extension of authority for extending
credits to the Allies for eighteen months
after the official end of the war Is in
Guided in the bill. with the provision that
these credits may be established for the
purpose only of providing for purposes
ot property owned directly or indirectly
ny the United State. ant no. needee
by the United States, or for wheat. the
price OF which has been or may be
guaranteed by the Government. It is
provided that the amounts of advances
shall he secured by obligations of Gov
ernmcnts TO which they are made, which
shall hear at least 8 per cent. interest
and mature not later than October IS,
1888
Provision also Is made to allow the
Secretary OF the Treasury to convert
short time obligations OF foreign Gov
ernments into obligations maturing not
later than October Is. 1898. but the In
tsrest rate on these long time obligations
may not be less than the rate on the
short time obligations.
Aid for Export Concerns.
The War Finance Corporation act will
IN amended by the bill reported to-day
ny adding new section, giving the cor
poratiou power to extend credit anc
make advances 10 promote foreign com
meroH for periods not exceeding five
Years from the dates of such advances
- exporting concerns unable to obtair
'lndS reasonably from banks The rat,
o' interest charged may not be more
man per cent. in excess Of the discount
'a'e for ninety day commercial paper,
a. the time I.
Adiarces may he made TO banks and
rust companies which have made ad-
Na7ces to exporters. The outstanding
advances remaining unpaid may never
exceed 81 600. 900 900 The war Finance
'ornors''"n :. given power IN require
'9Hih"Eal security at any time. Net
tarH.oes Of the corporation not required
''E ''s operations shall be accumulated
~ 'eserve fund until the corporation
0"1ates This fund is to be invested
IN "n' cations OF the United States oI