Evening journal., 1919-02-21
VICTORY BONUS
FOR RICH And POOR
Two Form Method Urged
as Best to Float Issue OF
$1,000, 100000
CHANGE DUE TO
HOUSE ACTION

WASHINGTON, Feb. 2i.--The Ways
and Means Committee has reported
unanimously in favor OF the compro-
mise plan for floating the next obliga-
tions Of the United states.
The short time left to authorize the
dotation Of more Federal securities was
the compelling motive In bringing about
the unanimous report OF the Ways and
Means Committee in favor Of the COM
promise between the Administration
suggestion for vesting complete auth
ority over the conditions Of the next
sale Of bonds or notes In the Secretary
Of the Treasury and the Congressional
plan to block extension Of further arbi-
trary powers TO the executive branch Of
the Government.
AS a result OF this situation when
the matter Is brought before the House
Il Is expected that a substitute plan viii
be offered, and that II will receive
strong support from Republicans and
Democrats alike This plan in brief pro-
vides for the Issuance Of Federal notes
maturing In one 10 i've years under
either OF both Of these conditions:
A 8 "a per cent. bond or note com
pletely free Of Federal taxation Of any /
sort
A4i-2 per cent. bond with the income |
rom $4,000 10 each purchaser exempt /
from taxation and the balance Of the 1
income subject 10 income taxes, income /
surtaxes and war excess profits taxes.
When the House discusses the auth
orization for issuing Government Obli-
cations TO total s7,0OO0O00O0 In addition
10 those now extant this substitute VIII
l. - Naa hNra nf
the Ways and Means Committee. 10 IS
entirely possible that this suggestion
will supersede the compromise measure
prepared by the Treasury Department !
and accepted by the committee.
u was learned that IN the compromise I n
plan permitting Issuance Of notes h
under any or all Of four differing condi- :
lions an agreement was reached between :
Of the Treasury Depart n
nent and members Of the Ways and Il
Means Committee that not moret han Il
wo OF the conditions would be put In \
feet II the plan becamet he law Of =
he land N
The substitute for the compromise
Ian has the added strength Of embrac-
ng but two alternatives, and it is be
ieved by members OF the Ways and n
Means Committee that adoption Of the I
substitute would operate TO lift instead I
of depress the market price Of earlier I
issues Of Liberty Bonds, :
Safeguarding the sale price Of the
hrst, second. third and fourth Liberty
Loan issues has been one Of the greatest
problems It has been necessary to con-
slider In arranging the terms under
which further obligations Of the Fed
eral Government might be sold The
suggested substitute for the Ways and Il
Meaps Committee compromise plan is
expected TO take care OF that part OF
the situation.
One OF the other problems I'm con-
lecfion with selling additional obllga-
ions OF the American Government has |
cen and still Is the explanation to The
merican public generally Of the rea-
IN for shifting from bonds TO notes. Il
has been suggested IN the secret con- |
lves OF the Ways and Means Commit lII
: that the proposed issue OF obliga- 4 /
ms be labelled bond or note" The II
"a Of this is to overcome the preiu- |
e Of the small buyer Of paper Of this / |
ue, the great majority Of whom have
liz recently learned the meaning Of
overnment bond and what it stands
IT. Ill
It is feared that the words Liberty
onds' have been so firmly Impressed
"a me minds Of the small purchasers
nat the sudden change TO issuing notes
Nltnout laDorious explanations that the iii
'reoh OF me American Government is III
oehind them win check investment in III
thls paper by the millions OF men and
women who put their savings In fine II
BONDS sold under the stimulus OF ma iii
triotic fervor. III
iii
Don't trust TO luck for chances-oom- |