tion or association since the passage of this act is in excess of $100,000. Shares of stock of any corporation or association without nominal or par value shall for the purpose of this section be deemed to be of the par value of $100 each. Any securities which upon the date of the passage of this act are in the possession or control of the corporation, association or obligor issuing the same shall be deemed to have been issued after the passage of this act within the meaning hereof.

Nothing in this title shall be construed to authorize such committee to pass upon (1) any borrowing by any person, rm, corporation or association in the ordinary course of business as distinguished from borrowing for capital purposes, (2) the renewing or refunding of indebtedness existing at the time of the passage of this act, (3) the resale of any securities the sale or offering of which the committee has determined to be compatible with the national interest, (4) any securities issued by any railroad corporation the property of which may be in the possession and control of the president of the United States or (5) any bonds issued by the war finance corporation.

Nothing done or omitted by the committee hereunder shall be construed as carrying the approval of the committee or of the United States of the legality, validity, worth or security of any securities.

Sec. 204. That there is hereby appropriated out of any money in the treasury not otherwise appropriated, for the remainder of the fiscal year ending June 30, 1918, and the fiscal year ending June 30, 1919, the sum of $200.000 for the purpose of defraying the expenses of the establishment and maintenance of the committee, including the payment of the salaries and rents herein authorized.

Sec. 205. That the committee shall make a report to congress on the first day of each regular session, including a detailed statement of receipts and expenditures, and also including the names of all officers and employes and the salary paid to each.

Sec. 206. That this title shall continue in effect until, but not after, the expiration of six months after the termination of the war. the date of such termination to be determined by a proclamation of the president of the United States, but the president may at any time by proclamation declare that this title is no longer necessary, and thereupon it shall cease to be in effect.

Title III-Miscellaneous.

Sec. 300. That whoever willfully violates any of the provisions of this act, except where a different penalty is provided in this act, shall, upon conviction in any court of the United States of competent jurisdiction, be fined not more than $10,000 or imprisoned for not more than one year, or both; and whoever knowingly participates in any such violation, except where a different penalty is provided in this act. shall be punished by a like fine or imprisonment, or both.

Sec. 301. That no stamp tax shall be required or imposed upon a promissory note secured by the pledge of bonds or obligations of the United States issued after April 24, 1917. or secured by the pledge of a promissory note which itself is secured by the pledge of such bonds or obligations: Provided. That in either case the par value of such bonds or obligations shall equal the amount of such note.

Sec. 302. That if any clause, sentence, paragraph or part of this act shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, or, in case any court of competent jurisdiction shall adjudge to be invalid any provisions hereof in respect of any class or classes of securities, such judgment shall not affect, impair or invalidate the remainder of this act, but shall be con

fined in its operation to the clause, sentence, paragraph, part or subject matter of this act directly involved in the controversy in which such judgment shall have been rendered.

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Sec. 303. That the term "securities." used in this act, includes stocks, shares of stock, bonds, debentures, notes, certificates of indebtedness and other obligations.

Sec. 304. That the right to amend, alter or repeal this act is hereby expressly reserved. Sec. 305. That the short title of this act shall be the "War Finance Corporation act." Sec. 306. That all provisions of any act or acts inconsistent with the provisions of this act are hereby repealed. (Approved April 5. 1918.)

War Finance Corporation Directors. (Appointed by President April 29, 1918.) William G. P. Harding (Ala.). 2 years. Clifford M. Leonard (ill.), 2 years. Eugene Meyer, Jr. (N. Y.), 4 years. Angus W. McLean (N. C.), 4 years. Capital Issue Committee. (Appointed by President April 29, 1918.) Charles S. Hamlin (Mass.). John Skelton Williams (Va.). Frederic A. Delano (Ill.). James B. Brown (Ky.). John S. Drum (Cal.). Henry C. Flower (Mo.). Frederick H. Goff (Ohio).

SILVER COINAGE ACT.

An act to conserve the gold supply of the United States; to permit the settlement in silver of trade balances adverse to the United States; to provide silver for subsidiary coinage and for commercial use; to assist foreign governments at war with the enemies of the United States; and for the above purposes to stabilize the price and encourage the production of silver.

Be it enacted etc., That the secretary of the treasury is hereby authorized from time to time to melt or break up and to sell as bullion not in excess of 350,000,000 standard silver dollars now or hereafter held in the treasury of the United States. Any silver certificates which may be outstanding against such standard silver dollars so melted or broken up shall be retired at the rate of $1 face amount of such certificates for each standard silver dollar so melted or broken up. Sales of such bullion shall be made at such prices not less than $1 per ounce of silver one thousand fine and upon such terms as shall be established from time to time by the secretary of the treasury.

Section 2. That upon every such sale of bullion from time to time the secretary of the treasury shall immediately direct the director of the mint to purchase in the United States, of the product of mines situated in the United States and of reduction works so located, an amount of silver equal to 371.25 grains of pure silver in respect of every standard silver dollar so melted or broken up and sold as bullion. Such purchases shall be made in accordance with the then existing regulations of the mint and at the fixed price of $1 per ounce of silver one thousand fine, delivered at the option of the director of the mint at New York, Philadelphia, Denver, or San Francisco. Such silver so purchased may be resold for any of the purposes hereinafter specified in section 3 of this act. under rules and regulations to be established by the secretary of the treasury, and any excess of such silver so purchased over and above the requirements for such purposes shall be coined into standard silver dollars or held for the purpose of such coinage, and silver certificates shall be issued to the amount of such coinage. The net amount of silver so purchased, after making allowance for all resales, shall not exceed at any one time the amount needed to coin an aggregate number of standard silver

dollars equal to the aggregate number of standard silver dollars theretofore melted or broken up and sold as bullion under the provisions of this act, but such purchases of silver shall continue until the net amount of silver so purchased, after making allowance for all resales, shall be sufficient to coin therefrom an aggregate number of standard silver dollars equal to the aggregate number of standard silver dollars theretofore so melted or broken up and sold as bullion.

Sec. 3. That sales of silver bullion under authority of this act may be made for the purpose of conserving the existing stock of gold in the United States, of facilitating the settlement in silver of trade balances adverse to the United States, of providing silver for subsidiary coinage and for commercial use, and of assisting foreign governments at war with the enemies of the United States. The allocation of any silver to the director of the mint for subsidiary coinage shall, for the purposes of this act, be regarded as a sale or resale.

Sec. 4. That the secretary of the treasury is authorized, from any moneys in the treasury not otherwise appropriated, to reimburse the treasurer of the United States for the difference between the nominal or face value of all standard silver dollars so melted or broken up and the value of the silver bullion, at $1 per ounce of silver one thousand fine, resulting from the melting or breaking up of such standard silver dollars.

Sec. 5. That in order to prevent contraction of the currency, the federal reserve banks may be either permitted or required by the federal reserve board, at the request of the secretary of the treasury, to issue federal reserve bank notes, in any denominations (including denominations of $1 and $2) authorized by the federal reserve board, in an aggregate amount not exceeding the amount of standard silver dollars melted or broken up and sold as bullion under authority of this act, upon deposit as provided by law with the treasurer of the United States as security therefor, of United States certificates of indebtedness, or of United States one year gold notes. The secretary of the treasury may, at his option, extend the time of payment of any maturing United States certificates of indebtedness deposited as security for such federal reserve bank notes for any period not exceeding one year at any one extension and may, at his option, pay such certificates of indebtedness prior to maturity. whether or not so extended. The deposit of United States certificates of indebtedness by federal reserve banks as security for federal reserve bank notes under authority of this act shall be deemed to constitute an agreement on the part of the federal reserve bank making such deposit, that the secretary of the treasury may so extend the time of payment of such certificates of indebtedness beyond the original maturity date or beyond any maturity date to which such certificates of indebtedness may have been extended, and that the secretary of the treasury may pay such certificates in advance of maturity, whether or not so extended.

Sec. 6. That as and when standard silver dollars shall be coined out of bullion purchased under authority of this act, the federal reserve banks shall be required by the federal reserve board to retire federal reserve bank notes issued under authority of section five of this act, if then outstanding, in an amount equal to the amount of standard silver dollars so coined, and the secretary of the treasury shall pay off and cancel any United States certificates of indebtedness deposited as security for federal reserve bank notes so retired.

Sec. 7. That the tax on any federal reserve bank notes issued under authority of this act, secured by the deposit of United States certificates of indebtedness or United States one year gold notes, shall be so adjusted that the net return on such certificates of indebted

ness, or such one year gold notes, calculated on the face value thereof, shall be equal to the net return on United States two per cent bonds, used to secure federal reserve bank notes, after deducting the amount of the tax upon such federal reserve bank notes 80 secured.

Sec. 8. That except as herein provided, federal reserve bank notes issued under authority of this act, shall be subject to all existing provisions of law relating to federal reserve bank notes.

Sec. 9. That the provisions of Title VII. of an act approved June 15, 1917. entitled "An act to punish acts of interference with the foreign relations, the neutrality, and the foreign commerce of the United States, to punish espionage, and better to enforce the criminal laws of the United States, and for other purposes," and the powers conferred upon the president by subsection (b) of section 5 of an act approved Oct. 6. 1917, known as the Trading with the enemy act," shall, in so far as applicable to the exportation from or shipment from or taking out of the United States of silver coin or silver bullion, continue until the net amount of silver required by section two of this act shall have been purchased as therein provided. (Approved, April 23, 1918.)

THIRD LIBERTY BOND ACT.

Be it enacted, etc., That the first section of the act approved Sept. 24, 1917, entitled "An act to authorize an additional issue of bonds to meet expenditures for the national security and defense, and, for the purpose of assisting tional credit to foreign governments, and for in the prosecution of the war, to extend addiother purposes," be, and is hereby, amended to read as follows:

the approval of the president, is hereby author"That the secretary of the treasury, with credit of the United States for the purposes of ized to borrow, from time to time, on the this act, and to meet expenditures authorized public purposes authorized by law, not exceedfor the national security and defense and other ing in the aggregate $12.000.000.000, and to issue therefor bonds of the United States, in addition to the $2,000,000,000 bonds already thority of the act approved April 24, 1917, issued or offered for subscription under auentitled 'An act to authorize an issue of bonds to meet expenditures for the national security and defense, and, for the purpose of assisting in the prosecution of the war, to extend credit to foreign governments, and for other pur945,460 shall be in lieu of that amount of poses': Provided, That of this sum $3,063,the unissued bonds authorized by sections 1 and 4 of the act approved April 24, 1917, $225.000.000 shall be in lieu of that amount of the unissued bonds authorized by section 39 of the act approved Aug. 5, 1909, $150,000.000 shall be in lieu of the unissued bonds authorized by the joint resolution approved March 4, 1917, and $100,000,000 shall be in lieu of the unissued bonds authorized by section 400 of the act approved March 3, 1917.

"The bonds herein authorized shall be in such form or forms and denomination or denominations and subject to such terms and conditions of issue, conversion, redemption, maturities, payment, and rate or rates of interest. not exceeding 4 per cent per annum, and time or times of payment of interest as the secretary of the treasury from time to time at or before the issue thereof may prescribe. The principal and interest thereof shall be payable in United States gold coin of the present standard of value.

"The bonds herein authorized shall from time to time first be offered at not less than par as a popular loan, under such regulations, prescribed by the secretary of the treasury from time to time, as will in his opinion give the people of the United States as nearly as may be an equal opportunity to participate

therein, but he may make allotment in full upon applications for smaller amounts of bonds in advance of any date which he may set for the closing of subscriptions and may reject or reduce allotments upon later applications and applications for larger amounts, and may reject or reduce allotments upon applications from incorporated banks and trust companies for their own account and make allotment in full or larger allotments to others, and may establish a graduated scale of allotments, and may from time to time adopt any or all of said methods, should any such action be deemed by him to be in the public interest: Provided, That such reduction or increase of allotments of such bonds shall be made under general rules to be prescribed by said secretary and shall apply to all subscribers similarly situated. And any portion of the bonds so offered and not taken may be otherwise disposed of by the secretary of the treasury in such manner and at such price or prices, not less than par, as he may determine. The secretary may make special arrangements for subscriptions at not less than par from persons in the military or naval forces of the United States, but any bonds issued to such persons shall be in all respects the same as other bonds of the same issue."

Sec. 2. That the last sentence of section two of said act approved Sept. 24, 1917, be, and is hereby, amended to read as follows:

"For the purposes of this section there is appropriated, out of any money in the treasury not otherwise appropriated, the sum of $5,500,000,000, and in addition thereto the unexpended balance of the appropriations made by section 2 of said act approved April 24, 1917, 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 section 4 of said act approved Sept. 24, 1917, is hereby amended by adding two new paragraphs, as follows:

"That holders of bonds bearing interest at a higher rate than 4 per cent per annum, whether issued (a) under section 1, or (b) upon conversion of 4 per cent bonds issued under section 1, or (c) upon conversion of 3 per cent bonds, issued under said act approved April 24, 1917, or (d) upon conversion of 4 per cent bonds issued upon conversion of such 3% per cent bonds shall not be entitled to any privilege of conversion under or pursuant to this section or otherwise. The provisions of section 7 shall extend to all such bonds.

"If bonds bearing interest at a higher rate than 4 per cent per annum shall be issued before July 1, 1918, then any bonds bearing interest at the rate of 4 per cent per annum which shall, after July 1, 1918, and before the expiration of the six months' conversion period prescribed by the secretary of the treasury, be presented for conversion into bonds bearing interest at such higher rate. shall, for the purpose of computing the amount of interest payable, be deemed to have been converted on the dates for the payment of the semiannual interest on the respective bonds so presented for conversion, last preceding the date of such presentation."

Sec. 4. That the last sentence of section 5 of said act approved Sept. 24, 1917. be, and is hereby, amended to read as follows:

"The sum of such certificates outstanding hereunder and under section 6 of said act approved April 24, 1917, shall not at any one time exceed in the aggregate $8,000,000,000.'

Sec. 5. That section 8 of said act approved Sept. 24, 1917, be, and is hereby, amended to read as follows:

"Sec. 8. That the secretary of the treasury, in his discretion. is 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 arising from the payment of income and excess profits taxes, 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 condi. tions as the secretary of the treasury may from time to time prescribe: Provided, That the provisions of section 5191 of the revised statutes, as amended by the federal reserve act, and 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 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 represent atives 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."

Sec. 6. That said act approved Sept. 24, 1917, is hereby amended by adding four new sections, to read as follows:

"Sec. 14. That any bonds of the United States bearing interest at a higher rate than 4 per cent per annum (whether issued under section 1 of this act or upon conversion of bonds issued under this act or under said act approved April 24, 1917, which have been owned by any person continuously for at least six months prior to the date of his death, and which upon such date constitute part of his estate, shall, under rules and regulations prescribed by the secretary of the treasury, be receivable by the United States at par and accrued interest in payment of any estate or inheritance taxes imposed by the United States, under or by virtue of any present or future law upon such estate or the inheritance thereof.

"Sec. 15. That the secretary of the treasury is authorized, from time to time, until the expiration of one year after the termination of the war, to purchase bonds issued under authority of this act, including bonds issued upon conversion of bonds issued under this act or said act approved April 24, 1917, at such prices and upon such terms and conditions as he may prescribe. The par amount of bonds of any such series which may be purchased in the twelve months' period beginning on the date of issue shall not exceed onetwentieth of the par amount of bonds of such series originally issued, and in each twelve months' period thereafter shall not exceed one-wentieth of the amount of the bonds of such series outstanding at the beginning of such twelve months' period. The average cost of the bonds of any series purchased in any such twelve months' period shall not exceed par and accrued interest.

"For the purposes of this section the secretary of the treasury shall set aside, out of any money in the treasury not otherwise appropriated, a sum not exceeding one-twentieth of the amount of such bonds issued before April 1. 1918, and as and when any more such bonds are issued he shall set aside a sum not exceeding one-twentieth thereof. Whenever, by reason of purchases of bonds, as provided in this section, the amount SO set aside falls below the sum which he deems necessary for the purposes of this section, the secretary of the treasury shall set aside such amount as he shall deem necessary, but not more than enough to bring the entire amount so set aside