The Washington herald., 1921-01-16
Former Bay State Sena-
tor Urges Protection
For Liberty Bonds.
RUMORED AS NEXT
ARMY SECRETARY
Graduated at Annapolis
and Keeps Close to
Military.

MARION. Ohio, Jan. Is The
government owes it to the patriotic
Americans who bought Liberty
Bonds during the war, to exercise
every economy practicable so that
these bonds will return to par.
This was the declaration of for
mer Senator Johw w. Weeks, of
Massachusetts,, following a confer
ence with President-elect Harding.
Everybody would be glad to see
this government make Liberty
Bonds worth what people paid for
them" said Senator Weeks, but 1t
must not be forgotten that a large
proportion of the bonds have been
resold and the government is not
pledged to make the bonds worth
par to people who paid from so to
80 for them. This country has got
10 economize and the only way to
do it is to quit spending money. If
this policy is followed, Liberty
bonds will be restored to par, and
the patriotic Americans who bought
them to help win the war, will not
lose on their investment"
Praises Reserve System.
The Federal Reserve System, Sen
ator Weeks said, has been a steady
ing factor throughout the period of
financial stress following the war,
and with a few minor changes
should be retained. Senator Weeks
indicated he did not favor the sug-
gestion of a great central bank
with branch agencies to eliminate
competition between the Federal
Reserve banks and cut down their
profits.
The profits supposed to be made
by the regional banks in reality go
into the Treasury and are not re-
tained by the member banks" said
Senator Weeks. ,,... g
The proposed re-establishment of
the War Finance Corporation to aid
the farmers in exporting their sur
plus crops, Senator Weeks de-
scribed as mere camoufiage."
Upholds Houston. =
Inc VI VA NhS
Treasury Houston in opposing the
re-establishment of the War Finance
Corporation was perfectly sound,
Senator Weeks declared.
He strongly advocated to the
President-elect refunding the float
ing debt outside the Liberty bond
issues by the issuance of long-term
serial bonds as against the financial
plan of the presen administration.
which is for the repayment of the
floating debt within five years. Sem
ator Weeks predicted that the issu-
ance of long term bonds would be
the method adopted in refunding the
floating debt. thereby lifting the i'm
mediate burden from those who ac-
tually financed the war and distrib-
uting 1t over a considerable period.
Discusses Cabinet.
Senator Weeks is known to have
discussed Cabinet appointments with
Senator Harding today, and this led
to the belief that the former Mas
sachusetts Senator is still a strong
possibility as Secretary of War in
the next Cabinet.
The Prssitent-elect has frequently
indicated recently that he Desired
10 Hi pOSl Win
the needs of the army, and yet who
would be a good business execv-
tive. Weeks, for some years, served
on the Senate Military Affairs Com
mittee and since his retirement from
the upper house, has been a partner
in a large Boston banking concern.
Senator Harding does not want
military leader as Secretary of War.
Annapolis Graduate.
Senator Weeks, as an Annapolis
graduate, has frequentlysbeen men,
toned as a possibility for Secretary
of the Navy, but there are serious
objections to such an appointment,
the first and most important being
that the class with which Weeks
graduated at the Naval Academy
are now in active service. This, IL
is believed, would prove a source
of friction and discomfort, -.
Senator Weeks also has been
mentioned To hold the Treasury
portfolio in the incoming adminis-
tration.. but in well-informed circles
1t is generally conceded\ that this
post will go to Charles O. Dawes,
CONTINUED ON PAGE FOUR.
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