The sun., 1919-02-14
Secretary Pleads With the
House Committee for Wide
Authority in Issue.
LITTLE IMPRESSION MADE
U. S. Needs More Than 18 Bill
ions, McAdoo Estimated
Ten Billion Plan Denied.
speciol Despatch TO THE Sun.

ties Secretary Of the Treasury Glass
told the House Ways and Means Com
inittee to-day that he believed some
thing must be done to make bonds OF
-he coming Victory Loan more desir-
able than those Of previous issues. He
'cehnitely fixed April as the time Of the
nfYering.
The Secretary pointed out that each
succeeding Liberty Loan was made
more desirable than the previous one.
md necessarily SO. the second and
'hrd by increased interest and the
fourth by greater tax exemptions.
"1 am not convinced" he said. that
IN increase in the interest will be nee
"ssary."
At the same time he urged that If II
proved necessary the Treasury should
have proper authority. 1t seemed the
Secretary leaned to a system of issu-
ug bonds payable at premium rather
han increasing interest or giving
greater tax exemptions. He favored
Increasing exemptions for the holders
II existing bonds on the ground that
they should be protected.
Expenses Are Coming Down.
The Secretary pointed out that though
February is showing gratifying de-
crease in expenditures there had been
in November. December and January
expenditures at the rate Of nearly ST.
Ooo.ooo.0o0 month and that with
heavy expenditures probable or the adju-
dicaton Of war contracts and to meet the
military, naval and Food Administration
outgo the needs Of the Government for
the fiscal year would probably far ex-
ceed the estimate of $4,000. 100000
made by Secretary McAdoo.
In explaining the request for addi-
onal bond authorization and an au-
-ho.tzation for 10000. 100000 OF Treas
ury notes the Secretary said the items
were not cumulative, but merely gave
authority for the issue OF one or the
other or perhaps notes later to be con-
rerted into bonds. He said Congress
ohould noe authorize a maximum inter-
est rate because the public would take
the maximum as the minimum.
Questions and comments by the COM
nittee members Indicated that they were
0ot in favor OF granting Mr.. Glass the
Kitchin and several OF his Democratic
o,eagues are known TO be opposed TO
many of the Glass proposals.
When the committee adjourned no ac-
ton had been taken. as Assistant Sec
etary Leffingwell had not completed
statement he was making. Furthermore
the Increased powers asked for the War
Finance Corporation had not been dis
cursed.
To Quiz Le6inGwelI To-day.
Mr.. Leffingwell was not prepared 70
tuggest to the committee possible in
crest rates and the tax exemptions. lie
ril he questioned further as to the
Treasury recommendations in this re-
spect when he appears tomorrow. and
4 is expected he will have some rec
lamentations to guide the committee IN
the probable event that the broad
powers asked by Secretary Glass are
denied him.
The committee was particularly inter-
Ared in the machinery which Secretary
lass has under consideration in float
ing the next loan. While the apparent
cost of floating the first four war loans
vas only s39. 900, 900. a figure lower than
would have resulted from having
She loans underwritten By financial or
ranzations. the actual cost was many
~ mes that figure, as under patriotic I'M
ruses private institutions contributed
the services OF their employees TO an
extent not TO be expected in future
loars
Because o. this some members are
.nclned TO favor having the loan under
rr!ten at a fixed figure. Mr.. Glass
.Ndicated clearly that he does not pro-
pofe such method and does not favor
T. but hopes to have the terms OF the
Dan attractive enough TO enable the
Government TO float 1t by popular ap-
peal!
Secretary Glass urged tax 'xemption
'or bonds held abroad as deSirable not
MY in furnishing a broader market for
ne issue but In encouraging foreign
holdings to Offset trade balances. This
led him TO the provisions respecting
broadening the power of the War
Finance Corporation, and he said these
we're necessary and the only means OF
aiding trade and aiding the Allies In pur-
chsses here.
Sees Obstacles to One Plan.
The Secretary thought the only other
means OF giving the necessary financial
support or credit for these purchases
vas through American Investments
abroad. This could not be expected. he
concluded bocause this country bad been
always a borrower Of capital and would
not so readily become lender, as II was
new game and new problem.
Concerning discretion on the next bond
issue he said in part:
"On the date the armistice was signed
the United States was In the fortunate
position of having outstanding no short