Carroll County democrat. (Huntingdon, Tenn.) 188?-1971, 1917-10-19
TREASURY HEAD OUTLINES IN
VEsTMENT AS TT AFFECTS
BOTH LARGE AND SMALL
SUBSCRIPTIONS - ITS
TAX EXEMPTIONS.
System of interchangeable Coupons
Makes Early Delivery to Buyers
Possible-5onds Convertible
into Subsequent issues.


Amount, SS,OO0,000,000 or more, til
excess not to exceed one-half Of tn
amount of oversubscription.
Terms of Bonds Maturity, 25 years
redeemable at the option OF the sec
rotary of the treasury in 10 years.
Denominations of Bonds-S5O an,
multiples of $50.
Interest Rate-Four per cent, pay
able semiannually on November Il
and May is.
Terms OF Payment-Tw0 per cen
upon application, is per cent Nov. Is
Az per cent Dec. Is and 40 per CEN
Jan. Is, 1918. The privilege of con
verting bonds Of this issue into bonds
OF any succeeding issue bearing a high
er interest rate than 4 per cent dur
ing the period Of the war is extended
and through an arrangement under
which bonds will be printed with only
four coupons instead of so Ito be ex.
changed at the end Of two years for
the bonds containing the full number
Of coupons) deliveries will be prompt
In this manner the issue of interim
certificates win be avoided.
MeAdoop Announcement.
Secretary McAdoo's announcement
reads as follows;
with the approval Of the Presi-
dent l have determined to offer. Oct.
/, 1917, $3.OOO,0OO,OOO or more worth
Of United States convertible gold
bonds, due Nov. 10, 1912, and subject
to redemption at the option of the
United States at par and accrued in
terest on and after Nov. 10, 1927. The
bonds will bear interest from Nov.
10, 1917, and the interest will be pay
able on May Is and Nov. is in each
year.
THE exact amount OF bonds to be
issued under this offering will depend
on the amount of subscription re-
ceived. 1t is. Of course, to be expected
that subscriptions considerably in ex.
cess Of 100000, 900 will be received,
and in that event the right is reserved
10 allot bonds in excess OF 50. 900, O00,-
900 to the extent of not over one-half
Of the sum by which the subscriptions
received exceed $4,000. 100000 In 9TH
er words, il subscriptions to the ex.
tent Of s5.OOO,OOO,OOO are filed $4,000
100000 of bonds may be allotted.
At Par and Accrued Interest.
'The bonds will be offered as be-
fore. at par and accrued interest, and
will be in denominations of 500 and
multiples thereof.
1.-THE bonds shall be exempt, both as
to principal and interest, from all tax
alton 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
OBJ graduated additional income tax
es, commonly known as surtaxes, and
excess profits and war profits taxes,
now or hereafter imposed by the Unit
ed States upon the income or profits
Of individuals, partnerships, associa-
lions or corporations. The interest on
an amount of bonds and certificates
by said act the principal
Of which does not exceed in the aggre-
gate $4,000, owned by any individual,
association or corpora
ion, shall be exempt from the taxes
provided for in clause (b) above.
IF a subsequent series of bonds
mot including United States certifi-
,ate of indebtedness, warsaving GER
and other obligations matur-
ng not more than five years from the
ssue of such obligations, respectively
bearing interest at higher rate than
per cent per annum SHALL under the
Of said act approved Sept.
a, 1917, or any other act, be issued
~ the United States before the termi,
lation of the war between the United
states and the Imperial German Coy
(the date of such termination
o be fixed by proclamation OF the
President of the United States), then
he holders of bonds of the present
eries shall have the privilege, at the
'piion of the several holders, OF con
'erting bonds, at par, into bonds bear
ng such higher rate of interest, at the |
ssue price Of bonds of such subse-
Inent series, not less than par, with
IN adjustment of accrued interest.
Conversion Privilege.
Such conversion privilege must be
Exercised, if at all, at any time within
he period, after the public offering of
londs Of such subsequent series, be- |
ginning at the date of issue of bonds
II such subsequent issue, as such date |
hall be fixed in such public offerings. |
nd terminating six months after such |
late of issue, and under such rules |
md regulations as the Secretary of !
he Treasury shall have prescribed.
The bonds to be issued upon snch con |
iersien of bonds OF the present series |
hall be substantially the same in
urm and terms as shall be prescribed |
" or pursuant to Law with respect TO
be bonds Of such subsequent series,
lot only as to interest rate bat also az
. convartibility lif future bonds be |
ssued at a still higher rate OF i..ier
sD or nnn-coayertibjli,y and IS t.
,xeinption fr0E taxation, il any. ard |