American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1919-02-21
VICTORY LOAN TO BE
SHORT TERM NOTES
House Committee Decides Against
Giving Wide Powers to Secretary
Glass; Intensive Campaign VIII
Open In April.

Short term notes, maturing in from
one to five years, would be offered
in the forthcoming Victory Liberty
Loan campaign. instead of long term
notes. under tentative agreement
reached Tuesday by the house ways
and means committee to fix the loan
by legislation rather than to give
Secretary Glass wide discretionary
powers to determine them as he had
asked.
AT the same time Secretary Glass
! in a statement explained that the IN
| tensive popular campaign would De
| conducted as planned, regardless OF
| the terms arranged by congress and
| that il 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 issue would necessarily
carry with it such a high rate OF IN
terest that financial markets might
be adversely affected for some time.
Under the tentative agreement OF
the committee, reached in executive
session at which Assistant Secretary
Leffingwell of the treasury was pres
ent. Secretary Glass would be given
discretion of issuing any one or sew
eral of four kinds of notes to be pre-
, scribed by the legislature. The guam
, tity of these non-negotiable securities
, would be limited to probably $1,000,
600, 900. of which the treasury nov
plans to issue only about $6,OO0,OO0
s 600.
e The principal feature of each
I. the four kinds of notes proposes
q would be as follows;
a One class would be at low rat
: of interest, possibly 4 per cent an
o exempt from all federal taxation; on
Il would be at a comparatively high rat
: possibly per cent and subject to
s federal taxes; a third would bear
II moderate rate of interest-412 pc
cent was suggested-and be eXemI
l. from normal income tax levies II
a fourth would be exempt from taXi
= ton up to a certain amount.
4 These terms have not yet been d
lr fined hut treasury officials said Il
" proposed alternatives would salts
)" the treasury department. They Gov
ie all the possible terms which the trea
e. ury might choose even If it had broi
e. liscrffiOn it was explained. In q
be nomination the notes probably wou
correspond with past Liberty Loar
as ranging from $50 up Members
a the committee felt this would perm
as of as wide a scale of distribution
er in previous campaigns as the she
| attrl
r. tive to the small investors.
he The ways and means committee
he so decided tentatively not to incres
on the authorization for issuance
he bonds from about $4,000. 100000
,e- SIC. .OO0, ,0OO, 900. This means that
cd treasury still would have power
M issue up TO $4,000, 100000 in Libei
)ly Bonds al the Az per cent rate OF
Ter last two loans, and with the sa
me terms. Most officials believe q
err these securities could not be floa
i'm advantageously under new conditio
,ur and consequently that the treasi
by would not use any of the remain
red authorization at this time. IL Is D
OF sible. however, that some OF the no
10 be issued would be convertible
the the next three or four years into
ho, erty bonds of longer maturity.
slo- The draft OF the proposed legii
riv- tioa for the short term notes was
ted deyed by the committee. and its
the perts began Immediately TO cons
Ith- the plans for the new measure. !
sss- expected to be completed in. g
den 'syy. Wits final action TO be folio