Arizona republican., 1919-02-19
May Be Short Term Notes Under Leg islation Amount $6,OOO,OOO,OOO- Glass Might Prefer 4A% Bonds, Amount 5000, 100000 Only Def- mite Announcement Is Latest Date e- Same Rotation Methods and Media to Be Used.


 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 a tentative agreement reached today by the house ways and means committee, to fix the terms of 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 inten- siVe popular campaign would be con- ducted as planned, regardless of the terms arranged by congress, and that it would start not later than April 21. 1 The secretary had asked congress for authority to issue either bonds or 1 notes, as market conditions at the time might warrant, but members of the 1 committee concluded that a new loan 1 issue would necessarily carry with it | such a high rate of interest that finan- l cial markets might be adversely af- fected for some time.
 1 Under the tentative agreement of 1 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 sev- eral of four kinds of notes. to be prescribed by the legislation. The quantity of these non negotiable se- curities would be limited to probably | SI000, ,000,000, of which the treasury now plans to issue only about 5000, 100000.
 Describe Four Kinds of Notes
 The principal features Of each of the four kinds of notes proposed would be as follows:
 One class would be at low rate ot interest, nossibly per cent. and ex- empt from all federal taxation; one would be at a comparatively high rate Of interest, possibly per cent, and subject to all federal taxes: third would bear a moderate rate of in. i terest-4A per cent was suggested and be exempt from normal income, tax levies: the fourth would be ex. empt from taxation up to a certain amount.
 These terms have not vet been de fined, but officials said the proposet alternatives would be satisfactory {, the treasury. They cover all the DOS slOle terms which the treasury migh choose, even if it had broad discre tion, It was explained. In denomination the note probably would correspon, With tast Liberty loans, ranging iron $50 up. Members of the committee fel tnls would permit of as wide a sale a. III the previous campaigns as tn, snort term notes would prove more at tract1ve to the small investors.
 May Be Five Billion
 inc ways and means committee als decided tentatively not to increase th authorization for issuance of bond from about s5.090. 100000 10 s10.0O uV0.ooO. This means that the treasur- stlll would have power to issue m f S9,ooo'ooo,o0O in Liberty bonds. at tn "A per cent rate of the last 4v loans, and with the same terms. Mos officials believe these securities couI not be floated advantageously. unde new conditions. and consequentlv tha the treasury would not use any of th , remaining authorization at this tim. IL IS possible. however. that some q , the notes to be issued would he con
 Nertlble Tn the next three or four year into Liberty bonds of longer maturit, Ihe draft of the proposed legislatio TOT the short term notes was ordere l by the committee and it's experts he . gan immediately to consider the Dlan
 TOT the new measure. It is expected i pe coHlpleled In lew days with fine V action to be followed shortly after s ward by the committee. When the com mlttee's report is completed. effort
 will be made by Chairman Kitchin I s expedite passage of the legislation be p fore the adjournment of the preser t congress-
 Glass Issues Statement l. Secretary Glass statement issued tr f night. after announcement of the way d and means committees action. fo, n lows:
 e The Victory Liberty loan campaie
 Will begin not later than April q. TT = requirements of the treasury are in k perative and cannot be financed witt e out such a campaign. The form an o terms of the security to be issued rt
 main to be determined. Whether the 1t be bonds or notes, it is absolute :" essential that the widest possih q measure of distribution be realize IF This will necessitate a campaign n the same character as that conducte d (Continued on Page Two)