Purchase of their ob Interest rates, etc. Ante, p. 35. Advances authorized Interest to Interest. equal provi Arrangement for pay. authorized, on behalf of the United States, to establish credits with the United States for any foreign governments then engaged in war with the enemies of the United States; and, to the extent of the ligations. credits so established from time to time, the Secretary of the Treasury is hereby authorized to purchase, at par, from such foreign governments respectively their several obligations hereafter issued, bearing such rate or rates of interest, maturing at such date or dates, not later than the bonds of the United States then last issued under the authority of this Act, or of such Act approved April twenty-fourth, nineteen hundred and seventeen, and containing such terms and conditions as the Secretary of the Treasury may from time to time determine, or to make advances to or for for obligations. the account of any such foreign governments and to receive such obligations at par for the amount of any such advances; but the rate highest rates of United or rates of interest borne by any such obligations shall not be less States bonds. than the highest rate borne by any bonds of the United States which, at the time of the acquisition thereof, shall have been issued under authority of said Act approved April twenty-fourth, nine- Ante, p. 35. teen hundred and seventeen, or of this Act, and any such obliga-Conversion tions shall contain such provisions as the Secretary of the Treasury may from time to time determine for the conversion of a proportionate part of such obligations into obligations bearing a higher rate of interest if bonds of the United States issued under authority of this Act shall be converted into other bonds of the United States bearing a higher rate of interest, but the rate of interest in such foreign obligations issued upon such conversion shall not be less than the highest rate of interest borne by such bonds of the United States; and the Secretary of the Treasury with the approval of the ments, etc." President, is hereby authorized to enter into such arrangements from time to time with any such foreign Governments as may be necessary or desirable for establishing such credits and for the payment of such obligations of foreign Governments before maturity. For the purposes of this section there is appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $4,000,000,000, and in addition thereto the unexpended balance of the appropriations made by section two of said Act approved April twenty-fourth, nineteen hundred and seventeen, or so much thereof as may be necessary: Provided, That the authority granted by this section to the Secretary of the Treasury to establish credits for foreign Governments, as aforesaid, shall cease upon the termination of the war between the United States and the Imperial German Government. SEC. 3. That the Secretary of the Treasury is hereby authorized, obligations into higher from time to time, to exercise in respect to any obligations of foreign interized. governments acquired under authority of this Act or of said Act approved April 'twenty-fourth, nineteen hundred and seventeen, any privilege of conversion into obligations bearing interest at a higher rate provided for in or pursuant to this Act or said Act approved April twenty-fourth, nineteen hundred and seventeen, and to time. convert any short-time obligations of foreign governments which may have been purchased under the authority of this Act or of said Act approved April twenty-fourth, nineteen hundred and seventeen, into long-time obligations of such foreign governments, respectively, maturing not later than the bonds of the United States then last issued under the authority of this Act or of said Act approved April twenty-fourth, nineteen hundred and seventeen, as the case may be, and in such form and terms as the Secretary of the Treasury may prescribe; but the rate or rates of interest borne by any such longtime obligations at the time of their acquisition shall not be less than the rate borne by the short-time obligations so converted into such Appropriation. Ante, p. 35. Proviso. Authority to cease at end of war with Ger many. Conversion of foreign interest rates, etc., au Short time into long Equality of rates. nated United States payments of foreign. Redemption of desig- long-time obligations; and, under such terms and conditions as he bonds from sales or may from time to time prescribe, to receive payment, on or before maturity, of any obligations of such foreign governments acquired on behalf of the United States under authority of this Act or of said Act approved April twenty-fourth, nineteen hundred and seventeen, and, with the approval of the President, to sell any of such obligations (but not at less than the purchase price with accrued interest unless otherwise hereafter provided by law), and to apply the proceeds thereof, and any payments so received from foreign governments on account of the principal of their said obligations, to the redemption or purchase, at not more than par and accrued interest, of any bonds of the United States issued under authority of this Act or of said Act approved April twenty-fourth, nineteen hundred and seventeen; and if such bonds can not be so redeemed or purchased the Secretary of the Treasury shall redeem or purchase any other outstanding interest-bearing obligations of the United States which may at such time be subject to redemption or which can be purchased at not more than par and accrued interest. Ante, pp. 35, 36. Other obligations. outstanding Convertible authorized. bonds for subsequent issues at higher rates. SEC. 4. That in connection with the issue of any series of bonds under the authority of section one of this Act the Secretary of the Treasury may determine that the bonds of such series shall be convertible as provided in or pursuant to this section, and, in any such case, he may make appropriate provision to that end in offering for subscription the bonds of such series (hereinafter called convertible Exchange by holder bonds). In any case of the issue of a series of convertible bonds, if a subsequent series of bonds (not including United States certificates of indebtedness, war savings certificates, and other obligations maturing not more than five years from the issue of such obligations, respectively) bearing interest at a higher rate shall, under the authority of this or any other Act, be issued by the United States before the termination of the war between the United States and the Imperial German Government, then the holders of such convertible bonds shall have the privilege, at the option of the several holders, at any time within such period, after the public offering of bonds of such subsequent series, and under such rules and regulations as the Secretary of the Treasury shall have prescribed, of converting their bonds, at par, into bonds bearing such higher rate of interest at such price not less than par as the Secretary of the Treasury shall have Similar forms, terms, prescribed. The bonds to be issued upon such conversion under this Act shall be substantially the same in form and terms as shall be prescribed by or pursuant to law with respect to the bonds of such subsequent series, not only as to interest rate but also as to convertibility (if future bonds be issued at a still higher rate of interest) or nonconvertibility, and as to exemption from taxation, if any, and in all other respects, except that the bonds issued upon such conversion shall have the same dates of maturity, of principal, and of interest, and be subject to the same terms of redemption before maturity, as the bonds converted; and such bonds shall be issued from time to time if and when and to the extent that the privilege Termination of privi- of conversion so conferred shall arise and shall be exercised. If the privilege of conversion so conferred under this Act shall once arise, and shall not be exercised with respect to any convertible bonds within the period so prescribed by the Secretary of the Treasury, then such privilege shall terminate as to such bonds and shall not arise again though again thereafter bonds be issued bearing interest at a higher tax exemptions, etc. lege if not availed of. Certificates of indebt edness. rate or rates. SEC. 5. That in addition to the bonds authorized by section one Issue authorized to of this Act the Secretary of the Treasury is authorized to borrow borrow money for pub- from time to time, on the credit of the United States, for the purposes of this Act and to meet public expenditures authorized by law, such lic expenditures, etc. Payable within one year. sum or sums as in his judgment may be necessary, and to issue Limit of, and of prior War-savings certifi borrow money for pub Conditions, interest, Forms, payment, etc. SEC. 6. That in addition to the bonds authorized by section one of cates. this Act and the certificates of indebtedness authorized by section five Issue authorized to of this Act, the Secretary of the Treasury is authorized to borrow from lic expenses. time to time, on the credit of the United States, for the purposes of this Act and to meet public expenditures authorized by law, such sum or sums as in his judgment may be necessary, and to issue therefor, at etc. such price or prices and upon such terms and conditions as he may determine, war-savings certificates of the United States on which interest to maturity may be discounted in advance at such rate or rates and computed in such manner as he may prescribe. Such warsavings certificates shall be in such form or forms and subject to such terms and conditions, and may have such provisions for payment thereof before maturity, as the Secretary of the Treasury may prescribe. Each war-saving certificate so issued shall be payable at such years. time, not exceeding five years from the date of its issue, and may be redeemable before maturity, upon such terms and conditions as the Secretary of the Treasury may prescribe. The sum of such warsavings certificates outstanding shall not at any one time exceed in the aggregate $2,000,000,000. The amount of war-savings certificates sold to any one person at any one time shall not exceed $100, and it shall not be lawful for any one person at any one time to hold warsavings certificates to an aggregate amount exceeding $1,000. The ments. Secretary of the Treasury may, under such regulations and upon such terms and conditions as he may prescribe, issue, or cause to be issued, stamps to evidence payments for or on account of such certificates. Payable within five Aggregate allowed. Limit to one person. Stamps to show pay No circulation privi Exceptions. SEC. 7. That none of the bonds authorized by section one, nor of the leges to bonds, etc. certificates authorized by section five, or by section six, of this Act, General tax exempshall bear the circulation privilege. All such bonds and certificates tions. shall be exempt, both as to principal and interest from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b) graduated additional Post, pp. 301,302,324. income taxes, commonly known as surtaxes, and excess profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations. The interest on an amount of such bonds and certificates the principal of which does not exceed in the aggregate $5,000, owned by any individual, partnership, association, or corporation, shall be exempt from the taxes provided for in subdivision (b) of this section. Exemption of $5,000. Proceeds to be de SEC. 8. That the Secretary of the Treasury, in his discretion, is posited in banks, etc. hereby authorized to deposit, in such incorporated banks and trust companies as he may designate, the proceeds, or any part thereof, arising from the sale of the bonds and certificates of indebtedness and war-savings certificates authorized by this Act, and such deposits shall bear such rate or rates of interest, and shall be secured in such manner, and shall be made upon and subject to such terms and conditions, as Interest. Reserves not required the Secretary of the Treasury may from time to time prescribe: Profor public money de- vided, That the provisions of section fifty-one hundred and ninety-one R.S., sec, 5191, p.1004. of the Revised Statutes, as amended by the Federal Reserve Act, and posits. Vol. 38, p. 682. Depositaries abroad armed forces, etc. the amendments thereof, with reference to the reserves required to be kept by national banking associations and other member banks of the Federal Reserve System, shall not apply to deposits of public moneys for disbursements for by the United States in designated depositaries. The Secretary of the Treasury is hereby authorized to designate depositaries in foreign countries, with which shall be deposited all public money which it may be necessary or desirable to have on deposit in such countries to provide for current disbursements to the military and naval forces of the United States and to the diplomatic and consular and other representatives of the United States in and about such countries until six months after the termination of the war between the United States and the Imperial German Government, and to prescribe the terms and conditions of such deposits. Termination, etc. Postal employees. Disposal of bonds, etc., by. Appropriation for expenses of issue, etc. Limitations. SEC. 9. That in connection with the operations of advertising, selling, and delivering any bonds, certificates of indebtedness, or warsavings certificates of the United States provided for in this Act, the Postmaster General, under such regulations as he may prescribe, shall require, at the request of the Secretary of the Treasury, the employees of the Post Office Department and of the Postal Service to perform such services as may be necessary, desirable, or practicable, without extra compensation. SEC. 10. That in order to pay all necessary expenses, including rent, connected with any operations under this Act, except under section twelve, a sum not exceeding one-fifth of one per centum of the amount of bonds and war-saving certificates and one-tenth of one per centum of the amount of certificates of indebtedness herein authorized is hereby appropriated, or as much thereof as may be necessary, out of any money in the Treasury not otherwise appropriated, to be exStatement to Con- pended as the Secretary of the Treasury may direct: Provided, That in addition to the reports now required by law, the Secretary of the Treasury shall, on the first Monday in December, nineteen hundred and eighteen, and annually thereafter, transmit to the Congress a detailed statement of all expenditures under this Act. Proviso. gress. Further issue of former bonds restricted. Ante, pp. 35, 36. For interchange, con SEC. 11. That bonds shall not be issued under authority of sections one and four of said Act approved April twenty-fourth, nineteen hundred and seventeen, in addition to the $2,000,000,000 thereof heretoversion, etc., allowed. fore issued or offered for subscription, but bonds shall be issued from time to time upon the interchange of such bonds of different denominations and of coupon and registered bonds and upon the transfer of registered bonds, under such rules and regulations as the Secretary of the Treasury shall prescribe, and, if and to the extent that the privilege of conversion provided for in such bonds shall arise and shall be exercised, in accordance with such provision for such conversion. No bonds shall be issued under authority of the several sections of Acts and of the resolution mentioned in said section four of the Act approved April twenty-fourth, nineteen hundred and seventeen; but the proceeds of the bonds herein authorized may be used for purposes mentioned in said section four of the Act of April twenty-fourth, nineteen hundred and seventeen, and as set forth in the Acts therein enumerated. Issues rescinded. Present authorization substituted therefor. United States securities. ed. That section two of an Act of Congress approved February fourth, Vol. 36, p. 192, amend- nineteen hundred and ten, entitled "An Act prescribing certain provisions and conditions under which bonds and certificates of indebtedness of the United States may be issued, and for other purposes," is hereby amended to read as follows: Certificates of indebtedness. taxes, modified. from "SEC. 2. That any certificates of indebtedness hereafter issued shall be exempt from all taxes or duties of the United States (but, Exemption in the case of certificates issued after September first, nineteen hundred and seventeen, only if and to the extent provided in connection with the issue thereof), as well as from taxation in any form by or under State, municipal, or local authority; and that a penses of issue, etc., resum not exceeding one-tenth of one per centum of the amount of duced. any certificates of indebtedness issued is hereby appropriated, out of any money in the Treasury not otherwise appropriated, to pay the expenses of preparing, advertising, and issuing the same. Appropriation for ex Military accounts. SEC. 12. That the Secretary of the Treasury is authorized during Provisions for auditthe war, whenever it shall appear that the public interests require ing, etc., abroad. that any of the accounts of the Military Establishment be audited at any place other than the seat of Government, to direct the Comptroller of the Treasury and the Auditor for the War Department to exercise, either in person or through assistants, the powers and perform the duties of their offices at any place or places away from the seat of Government in the manner that is or may be required by law at the seat of Government and in accordance with the provisions of this section. Comptroller and Au of may be exercised abroad. Vol. 28, p. 205. (a) That when the Secretary of the Treasury shall exercise the ditor." authority herein referred to, the powers and duties of the said Powers and duties comptroller and auditor, under and pursuant to the provisions of the Act of July thirty-first, eighteen hundred and ninety-four, and all other laws conferring jurisdiction upon those officers, shall be exercised and performed in the same manner as nearly as practicable and with the same effect away from the seat of Government as they are now exercised and performed and have effect at the seat of Government, and decisions authorized by law to be rendered by the Decisions of Compcomptroller at the request of disbursing officers may be rendered effective. with the same effect by such assistants as may be authorized by him to perform that duty. troller by assistants, Balances certified from abroad conclusive, Vol. 28, p. 207. Revision allowed. (b) That when pursuant to this section the said comptroller and auditor shall perform their duties at a place in a foreign country, the balances arising upon the settlement of accounts and claims of the Military Establishment shall be certified by the auditor to the Division of Bookkeeping and Warrants of the Treasury Department as now provided for the certification of balances by said auditor in Washington, and the balances so found due shall be final and conclusive upon all branches of the Government, except that any person whose account has been settled or the commanding officer of the Army abroad, or the comptroller may obtain a revision of such settlement by the comptroller upon application therefor within three months, the decision to be likewise final and conclusive and the differences arising upon such revision to be certified to and stated by the auditor as now provided by law: Provided, That certificates of balances due may be transmitted to and paid by the cates. proper disbursing officer abroad instead of by warrant: Provided further, That any person whose account has been settled, or the Secretary of War, may obtain a reopening and review of any settlement made pursuant to this section upon application to the Comptroller of the Treasury in Washington within one year after the close of the war, and the action of the comptroller thereon shall be final Action of Comptroller and conclusive in the same manner as herein provided in the case of a balance found due by the auditor. Provisos. Reexamination, etc., after the war. final. Preservation of ac (c) That the comptroller and auditor shall preserve the accounts, counts, and the vouchers and papers connected therewith, and the files of until end of war, etc. their offices in the foreign country and transmit them to Washington within six months after the close of the war and at such earlier time as may be directed by the Secretary of the Treasury as to any or all accounts, vouchers, papers, and files. |