The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-12
BLANK CHECK TO.
GLASS OPPOSED
Congressman Unwilling to Let
Him Fix Interest and Other
Terms Of Victory Loan.
TAX EXEMPTIONS ISSUE
McFadden Suggests Secretary
Has "OutwilsOned Presi-
dent" in Asking for Power.
Special Despo.ch to THE sus.

WASHINGTON. Feb. 1.-THE Senate
Finance Committee and the> House
Ways and Means Committee will not
recommend to Congress that wide dis
cretionary powers In fixing terms of
the next loan to be floated be vested in
the Secretary Of the Treasury unless
that official Is able to present to these
committees convincing arguments of
the necessity for this action.
The position OF leading committee
men is strongly adverse to continuing
the practice OF extending to executive
officials the arbitrary powers which
many OF them have had and still have
under legislation forced through the
nece ssity Of war
There Is a greater willingness by the
committees to give Secretary Glass dis
cre;!on In fixing the amount OF the next
loan with a maximum limit set BY Con-
gress than there is to leave 1t in the
hands Of the executive branch Of the
Government to name the interest rate
and decide whether the next issue Of
bonds shall be tax free. Mr. Glass will
be invited to appear before both the
committees. ea..'
Higher Interest Opposed.
( The principal problem so far Is the
i interest rate concerned. There Ia con-
siderable opposition to exceeding the
/ interest rate on the last Liberty Loan
on the ground that the people who
bought those bonds for patriotic reasons
might feel that they were not fairly
treated in having an after the war issue
bear a higher interest rate and have a
higher market value.
! Opposition to the powers sought by
Mr.. Glass was openly voiced in the
House to-day by Representative Moore
/ (Penn.).
From my point OF view" he said
''the hour has struck when Republicans
at least, In view OF conditions abroad
| and of the condition of our Treasury
should stand on their feet any say ever
to the Precedent that We must protect
the interest OF the taxpayers of the
United States. What is 1t that tn,
Secretary of the Treasury proposes
Nothing less than that we should give
him the blanket authority to raise none,
as he sees At at any rate Of interes
taxes or TO the Constitution, which pre-
vents us from exempting taxes in Ger
tain circumstances
Has Outwilsoned President.
"As far as I can see." said Repre-
sentative McFadden (Penn). "the Sec
retary OF the Treasury has outwilsone,
the President. Mr.. Wilson from time I,
time asks ue to sign blank checks on tn
Treasury only; Mr.. Glass wants US I,
sign n blank check on the wealth an,
resources OF the United States OF Amer
lea.
'Tt is time the people realized tn,
magnitude Of the obligations they hav
taken on through the war, They shoul,
under stand that this Is not the last loa n
that In all probability before the year 4
out another loan Of similar amount will
be necessary and the expenses OF re
ad dtusting and conducting the countr
back to normal conditions probably will
require several additional bond issues.
1--WE have had sufficient experience witt
Liberty Loans to enable Congress 4
consider intelligently such features a
time. interest rate. tax exemptions ant
other things that the Secretary wishe
to settle in his own way and at his owl
! tirney