The Washington herald., 1919-02-11
cEASS SUBMITS
BILL TO FLOAT
LIBERTY LOAN
Wants Authorization for
So 500, 900, 900 and In
crease IN Interest Rate.
ALSO, TO ISSUE NOTES
Wants Bonds and Notes
Payable Sold Out at
a Premium.

slsss yesterday submitted to Con-
-ess /. bin which would authorize him
, issue a liberty loan OF 10000, 900
ad Increase the interest rate
In a Letter TO Representative Claude
ltrhin- chairman of the House Ways
I'd Means Coranittee, Mr.. Glass ask
| further authority than that con-
rred on him under existing law. His
tier, 4 copy Of which he sent to
enator Simmons. chairman of the
mate Finance COMMITTEES, carried
tn II the draft of a bill which he
sks Congress to enact. which would:
4 Increase the authorized issue OF
,nds from so,ooo 10000 to s5,oo,ooo.-
= Remove the limitation as to In
rest rate so far as regards bonds
aturing not more than ten years
ON date Of issue
Payable at a Premium
.. Authorize the issue OF not to ex-
sed s100OO. 10000 of interest-beartng,
on-cirCulating notes having maturi-
es from one to 1--WE years.
L Authorize the issue OF bonds and
otes payable at e premium
). Exempt Var savings certificates
rom income surtax.
6, Confer authority upon the Secre-
Iry Of the Treasury to determine the
xenptions from taxation in respect
} future issue Of bonds and notes.
nd to enlarge the exemptions Of ex-
ting liberty bonds in the hands of
disorders for new bonds and notes.
7. Extend the period for conversion
Z 4 per cent liberty bonds.
8 Extend the authority Of the War
nance Corporation so as to permit
to make loans in aid of American
Ornmerce, thus supplementing the aid
-hich may be given by the Treasury
direct loans to foreign govern
rents, and in a measure relieving the
reasury Of demands for such loans.
Wants q Sinking Fund.
Secretary Glass further asks au-
hority to create a ~ per cent Gu
nulatiye fund for the retirement Of
he war debt. and to exempt from
leome surtaxes and profits taxes all
ssues OF liberty bonds and bonds Of
1e War Finance Corporation held
o broad.
= bis letter Mr.. Glass reviews the
nsaeiat sld Industrial condition of
A. colnsry ara sxpresa-- optimism
- a-tthib two naonths bstteF con
isicrls -siii 9rsvRti Ne says
Sesirs = A. the 4ttert. on Of
le Wsys ard Msans Dsss-aiftee q
he necessity of fhe fsaraealsfa IN.
ctment of legislsti0a aFnsndi85 "a
ioerty bond acts so as to make pos
tble the funding by a victory lib
rty loan in the spring of the float
lg debt which has been incurred
I'D will be incurred up to that time.
The victory liberty loan could
OF be issued successfully. now that
ostilities have ceased. within the
mutations imposed by existing
Avs.
In Doubt Just Now.
After most careful consideration of
le matter. and after receiving and
onsidering the views Of bankers lib
rty loan workers and others. 7 am
onstrained to say that cannot wise
determine now in February the
erms OF the bonds or other obIiea-
ions which il would be wise to ofrer
or subscription in April, when the
ioerty loan campaign probably should
begin.
At the moment we are in a period
II readtustment. To the sIackening of
Industrial and commercial activity has
been added the usual dullness OF the
winter season. The necessary and de-
Sirable contraction of our credit struc-
ure mas begun and will be greatly ia
ciltated by the enactment of appro-
pirate legislation to permit the IiGuida-
ton OF claims arising under informal
army contracts. Stops have been taken
to break the deadlock which had aris-
en-, growing out OF the maintenance
nominally at least. Of war prices in
certain basic industries. TJpon the
,nactment of appropriate legislation
10 enable the Food Administration 10
protect the guarantees given by the
United States I am hopeful that il will
prove possible to restore the opera
non Of the law of supply and demand
with respect to foodsturs with. as 7
oeneVe, a consequent reduction in the
cost Of living.
~ Waiting for Decline.
Buying will not begin and activity
VIII not set in until the community at
large is satisfied that prices have
reached bedrock. am very hopefuI
that measures now under discussion
may result In the rapid acceIeration oF
the readjustment and am firnnlv con-
Vlnced that IL that be done. AnerIca
mas before her a new period of great
and growing prosperity. am even
sansuine enough to believe that n is
within the range of the possible thai
se much may have been Accomplished
on the lines above indicated before the
expiration OF two months from now
that the whole situation Will have
Deen changed and that we NAV Iook
forward to the successful issue Of tn,
victory Liberty Loan on terms which
today would seem quite impossible
Therefore in view Of the earIv ar-
ptration OF the life of the presen,
congress and the apparent irnpossi-
oiilty OF convening and organizing the
new Congress in time to enact further
pond legislation before the Victory
LIBERTY Loan campaign begins, 1 re-
luctantiy ask greater latitude I'm the
exercise Of a sound discretion as 10
tne terms OF the Victory Liberty Loan
than has been conferred by the Com
sress In RESPECT to previous loans
should be only too glad to have the
Congress share with me the resnons a.