The Birmingham age-herald., 1919-02-14
VICTORY BONDS ID .bE MORE DESIRABLE
 THAN PREDECESSORS
Glass Seeks Authority to Fix Interest Rate and Deter mine Exemptions from
 Taxation

retary Glass told the House ways
 and means committee that 1t was
 apparent something must he done
 to make the bonds or notes of the
 Victory Liberty Loan more nt-
 tractive than the4r predecessors"
 and asked that Congress give him
 authority to fix interest rates and
 determine exemptions from taxa
 tions according to financial condi-
 tionx when the loan is fIoated in
 April.
 The head of the nations financial system also urged thas authority be given the war finance corporation to make advances to exporters notsto ex- eeed sl.oeO, 100000 and stpah the .purr poses for which the treasury may make loans to foreign governments be broadened. Mir. Glass said both pro visions were necessary to restoration of the countrys foreign trade and would be mutually helpful to this gov. ernment and the allies.
 MT Glass told the committee that at the rate disbursements were being made it was apparent that only radi- cal reduction in the remaining months of the fiscal year could bring the years expenditures within the $1S,o00.0Je coo which former Secretary McAdoo had hoped would cover the govern ment's expenses. Cash disbursements during the first 10 days of February showed a very gratifying decrease" but MT. Glass pointed out that heavy payments on informal war contracts were being held in abeyance until Con gross acted on pending legislation af-
 al. stances and with a floating debt of $. 900 GOO, 900 in treasury certificates, in creasing approximately $140e,000,0O0 a month he thought the committee would not be surprised by his recommends tion for authorization of an additional $5 900, 600 900 issue of bonds There re- main unissued under previous legisla- tion slightly in eNces of s5.0Uo.o0V, 900,
 AMOUNT UNDECIDED
 Tt is ne ea.ess ,o say tna, the treasury does not contemplate the issue in con nection with the Victory Liberty loan of any such amount of bonds as $f0,ooo 00o,- 000," Mir. Glass said, adding that it seemed wise to suggest an increase to a figure which would seem to represent the maximum possible amount of the bonded debt growing out of the war.
 As an alternative to the issue of bonds, he suggested authorization of an issue of notes limited to s10O00.OOo.00O and an il- crease in the maximum amount of treas ury certificates from $S000, ,O00, 900 to 70, oOo. 600 eco not that the three items should be at all cumulative. but that the treas lury should have the power to finance the government S operations in the most eco nomical way.
 Tt may be desirable to adopt all of these methods in suecession. MT. Glas. sad.
 "Conditions in April might be such that if would be wise to issue a short tlrn. rote bearing d rela lively high rate of interest and carrying w.th it the privi- llege of conversion into bonds bearing in- terest at a lower rate and having long be desirable to make alternative of 1 be desirable to make an alternative of fer of bonds and notes leaving the sub- | scriber choice between the two. TO INCREASE INTEREST T am by no means convinced that con ditions will be such in April as to ne- cessitate an increase in the interest rate i over that which is provided in existing 7, law to an important extent if at all i vet if I were obliged to determine now l what is the lowest rate at which I could | undertake with certainty to finance the (Comtinued on Page Two)