The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-02-19
SHORT TERM
NOTES IN THE
VICTORY LOAN
Radical Changes Made in
Plans for the Forth
coming Campaign.

7 "AStIlNGTbN.- Feb ls.---Sh"rt TERM
notes maturing in from on. t." five years
would be Offered the forthcoming Vie
tory Liberty Loan campaign. instead or
long term notes under tentative,
agreement reached to-day. 10y the house
ways and means committee. |" fix the
. terms Of IN" loan by legislation, rather
. t!au Ia give Secretary Glass wide dis
! rrcti"uary powers TO determine ih"!n. As
; h. had asked.
At the SAM. time. Secretary Glass IN
IA statement explained that the intcESif"
= popular campaign would hc conducted a.
planned. regardless Of the terms ar
! ranged by congress, and that II wnuic
! start not later than April y. TIL" score
, iary i.u! asked congress for authority
, tn issue either bombs or notes as mar
kc, conditions At the time might wHr-
. rsIrlt but rnrmh"rS III. II" Commits" con-
y clud"I that 4 new loan i$su" would nee
rsyarily carry such Il high rat" uf inter
rst that financial markets might DE al
vcrSely affected for som" time.
Under the Tentative aErc"m"n; "' lhc
; cu:.'itirc reached in executive session
at w...aH Assistant Secretary Letting
we'll Of the treasury. was present. Sec
rotary Glass would pc given discretion
| of issuing. any one or several of four
, kinds OF notes to be prescribed by the
legislation. TIL" quantity nf these n"n-
negotiable securities would he lim!t"d
to probably S7.nUn 0TUG"u. nj which the
treasury now plans IL, ISSUE only about
six billions.
Tho principal features ut each of the
four kinds OF notes proposed would be
Us follows:
Ono class~would be al j low rate OF
interest possibly, 4 per cont. and eS-
empt from all federal taxation: on would
be :. comparatively high rate, possibly
per cent and subject TO all federal taxes
q third would bear Il moderate ratio or
intercst--4E per cent was suggested
and be exempt from normal income tax
lcvies; tho fourth would bc exempt from
taxation up 10 d certain AMOUNT.
These terms have not yet been defined.
but treasury officials said the proposed
alternatives would Satisfy the treasury
department. They cover all the possible
terms which the treasury might choose,
the notes. probably would correspond
with past Liberty Loans. ranging from
$50 UP.
Members Of the committee felt this
swould permit OF AS wide 4 sale as III pro
| yious campaigus. as the short term notes
would prove more attractive to tho
small investors.
The Ways and Means committee also
| decided tentatively not to increase the
! authorization for issuance Of bonds
from abolut $1,000 100000 to $lO.0GO,-
loco. Q0O. This means that The treasury
still would have power to Issue up 10
| five billions in Liberty bonds at the 4 i
/ per cent rate Of the last two loans and
4 with the same terms. Most officials be-
lieves that these securities could not
be floated advantageously under now
! conditions and consequently thai the
! treasury would not use any OF the re-
I maining authorization at this time. IT
is possible however: that some OF the
notes to be issued would be convertible
in the next three OF four years into Lib
erty bonds OF longer maturity.
The draft of the proposed legislation
for the short-tcrm notes was ordered
! BY the committee. aud its experts began
! Immediately to consider the plans fer
/ the new measure It Is expected Ia be
completed in Il few days, with final &C
ton TO be followed shortly aftcrWard
by the committee When tho commlt-
tees report Is completed. efforts will
b., made by Chairman kitchin to expo
dite passage Of the Legislation before
the adjournment of the present congress.
=. Secretary Glass statement. issued tc-
). night after announcement Of tho ways
land Means commuters ACtlOn, lQllOWS-
The Victory Liberty Loan cnnpagH
Will begin not later than April Il. The
: ! requirements of tho treasury arc i'm
! perative and cannot be financed without
such campaign. The form and terms
: Of the securities to be issued rcrnala
to be determined. Whether they bt
: bonds or notes il is absolutely essential
: that the widest possible measure OF diS-
: tribution be realized. This will nccessl-
tate a campaign Of the same character
rs that conducted through the three
past existing Liberty Loan argalIza-
: lions. They have pledged again their
r united support in order that the Victory
: Liberty Loan bonds or notes may be dis
n tributcd as widely as possible among
II the American people"
c This furnished the first official notice
Q of the date Of the campaign and dis
II posed OF reports that an issue OF notes
> would be floatcd mainly among bankers
, rather than the genera! public.
, Ever if congress finally adopts the
: tentative plans Of the House committee
e the trcasurys plans for the next loar
will not be materially changed. Officials
y declared. Secretary Glass had intended
y to mako the bonds Of short maturitN
70 but had asked for authority to issue ~
, 10 ten billions Of notes in addition. rates
u and other terms or both bonds and nolrs