The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-09-28
Will Issue Bonds for Fifty
PC. Of All Subscriptions
Above $3,OOO,OOO,OO
INTEREST AT 4 PER CENT.
Believed to Be First Time in
Country's History Of an
Unrestricted Issue.
Special Despatch to The Sos.


disclosed for the first time that no lirni-
tation Is to be placed on the amount Of
the offer. This is the first instance, II
Is believed, in the country's history Of
an unlimited Offering Of its bonds. In
this respect this nation Is following the
practice which has been pursued by
many Of the belligerent countries in their
war loans and which was urged by some
bankers at the time Of the frst loan.
As announced by Mr. McAdoo the
second Liberty Bond issue will be for
S3.0O0.oO0.OoO or a. much more a. the
public evince a desire to accept to the
limit Of the authorization by Congress-
The three billion dollars Is the mini
mum sum desired by the Federal Treas
ury. but the right is reserved to allot
bonds In excess Of this to the extent Of
not over one-half OF the sum by which
the subscription exceeds that amount. In
other words. as Secretary McAdoo ex-
planned 1t tonight II subscriptions
amounting to five billion dollars are re-
ceived four billion dollars Of bonds may
be allotted.
Will Pay 4 Per Cent.
This new feature Of the bond issue u
believed to have been decided upon as
= result Of the oversubscription Of the
last issue. II was felt by many that a
serious mistake was made before in not
having made provision for such a con-
tingency and that It was unfortunate
that the oversubscription had to be re-
turned.
The new bonds will bear interest at
per cent. will run to November Is, 1912,
and be redeemable At the option Of the
Government at any time after Novem-
Der IS. 1897. Az in the case Of the
last issue the denominations will be of
$50 and multiples thereof. The Offering
will be made on October !. and SUBJ
scriptions will close October 81. Two
per cent must accompany the Ianplica.
tions.
The other instalments will be due as
follows: Is per cent on November Is,
40 per cent. on December ~ and 40 psr
cent on January is. The new bonds
are expected to be ready for delivery
as soon as all payments arc completed.
Tho new bonds. unlike the old bonds.
will be subject to the income surtaxee,
and the excess profit and war profit
taxes.
Convention Provided For.
II any subsequent issue Of bonds shall
bear q higher rate OF interest than ( per
vert them into bonds OF the higher rate.
but such conversion privilege must be
exercised within the period Of six
months after the date Of issue Of such
bonds. To facilitate such conversion
bonds will Be printed with only four
coupons instead Of nifty Ito be exchanged
at the end Of two years for the bonds
Deliveries win be prompt. In this man.
ner the issue Of interim certificates win
be avoided.
reads as follows:
with tho approval Of the President I
have determined to offer on October 1,
1917. three billion or moro dollars Of
United States Of America per cent
convertible gold bonds. due on November
IS, 1912, and subject to redemption at
the option Of the United States at par
and accrued interest on and after No
vember is. 1927. The bonds will bear
interest from November IS. 1917. and
the interest will be payable on May is
and November Is In each year.
OversubscPiption Anticipated.
"The exact amount Of bonds to be
issued under this offering will depend
on the amount of subscription received.
It Is of course to DO expected that sub
scriptions considerably In excess Of three
billion dollars will DO received. and in
that event the right Is reserved to allot
bonds in excess OF three billion dollars
to the extent of not over one-half of
the sum by which the subscriptions re-
ceived exceed three billion dollars
THE bonds will be offered as before
at par and accrued interest, and will be
in denominations of $50 and multiples
thereof.
1.-THE bonds shall be exempt. both as
to principal and interest, from all taxa
tion now or hereafter imposed by the
United. States, any State or any Of the
any local taxing authority. except Gay
estate or inheritance taxes. and (b)
graduated additional income taxes, COM
monty known as sur-taxes. and excess
profits and war prohts taxes. now or
hereafter imposed by the United States
upon the income or profits OF individuals,
partnerships. associations or corpora
tons.
THE interest on an amount Of bonds
and certificates authorised by said act.
the principal of which does not exceed
in the aggregate 5000. owned by any
individual. partnership. association or
corporation. shall be exempt from the
taxes provided for In clause (B) above.
III q subsequent series of bonds (not
including United States certificate of
indebtedness war saving certificates and
other obligations maturing not moro
than nve years from the issue Of such
obligations respectively bearing In
terest at a higher rata than I per cent.
per annum shall. under the authority Of
said act approved September ~, 1917,
or any other act, be issued by the United
states before the termination Of the
war between tho United States and the
Imperial German Government (the date
of such termination to be hxed by proc
LANAI ton Of tho President OF ths United
States), then tho holders of bonds of
the present series shall have the privi-
lege. At the option of the several holders,
of converting their bonds. At par. into
bonds bearing such higher rate Of In
| terest. at the issue price Of bonds Of
such subsequent series. not less than
par, with an adjustment Of accrued In
terest.
such conversion privilege must he
exercised. u at all. at any time within
! the period. After the public Offering
ConfkNNod. - T1iNk .RRna.