The Newark journal., 1917-10-11
SEC'Y NJ AD0l GIVE5FULL
EXPLANATION Of SECOND
LIBERTY LOAN BOND ISSUE
TREASURY HEAD OUTLINES IN
VESTMENT AS 1T AFFECTS
BOTH LARGE AND SMALL
SUBSCRIPTIONS = ITS
TAX EXEMPTIONS.
System of interchangeable Coupons
Makes Early Delivery to Buyers
PossibIe-Bonds Convertible
Into Subsequent Issues.

Washington, D. C.-Secretary Nc
Adoo has announced the details of the
second Liberty Loan, which has just
been offered to the public. The chief
FEATURES are:
Amount, $3.000,000.0 900 or more. the
excess not to exceed one-half of the
amount of oyersubseription.
Terms of Bonds-Maturity, rs years;
redeemable at the option of the Sec
rotary Of the treasury in 10 years.
Denominations of Bonds-S50 and
multiples of 500.
Interest Rate-Four per cent, pay
able semi-annually on November Ii
ana May 10.
Terms OF Payment-Two per cent
upon application, is per cent Nov. 10,
~ per cent Dec. 10 and 40 per cent
Jan. 10, 1918. The privilege OF con
yerting bonds of this issue into bonds
o. any succeeding issue bearing a high
Ell interest rate than 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 Tor
the bonds containing the full number
OF coupons) deliveries will be prompt.
In this manner the issue OF interim
certificates will be avoided
McAdoo's Announcement.
Secretary McAdoo's announcement
reads as follows:
With the approval of the Presi-
dent / have determined to offer. Oct
/, 1917, $3,000,O00,000 or mere worth
OF United States convertible gold
bonds, due Nov. 10. 1912. and subject
to redemption at the option OF the
United States at par ana accrued IL
terest on and after Nov. 10, 1927 The
bonds will bear interest from Nov.
Is. 1917. and the interest viii be pay
able on May Is and Nov. 10 in each
year
The exact amount of bonds to be
issued under this offering will depend
on the amount OF subscription re-
ceIYed 1t Is, Of course, to be expected
that subscriptions considerably in ex
cess of 100000. 900 viii be received,
to allot bonds in excess of So ,000. 000,-
0G0 to the extent OF not over onc-haH
OF the sum by which the subscriptions
received exceed $1,000, 100000. In 9th
er words, if subscriptions to the ex
tent of $5,000,000, 900 are filed $4,000,
100000 OF bonds may be allotted.
At Par and Accrued Interest.
1.-THE bonds will be offered as be-
fore, at par and accrued interest, and
will be in denominations of $50 and
multiples thereof
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 OF
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
authorized by said act the principal
of which does not exceed in the aggre-
gate $4,000, owned by any individual,
partnership, association or corpora
ton, shall be exempt from the taxes
provided for in clause OBJ above.
"f subsequent series of bonds
(not including United States certifi-
cate of indebtedness. war-saving GER
tlficates and other obligations matur-
ing not more than five years from the
Issue of such obligations, respectively
bearing interest at higher rate than
4 per cent per annum shall, under the
authority of said act approved Sept
"a, 1917. or any other act, be issued
by the United States before the termi-
nation of the war between the United
States and the Imperial German Gov
eminent (the date OF such termination
to be fixed by proclamation Of the
President of the United States), then
the holders of bonds of the present
series shall have the privilege, at the
option of the several holders, Of con-
yerting bonds, at par, into bonds bear
ing such higher rate of interest, at the
issue price of bonds of such subse-
Quent series, not less than par, with
an adjustment of accrued interest.
Conversion Privilege.
such conversion privilege must be
exercised If at all. at any time within
the period, after the public offering of
bonds of such subsequent series, be-
ginning at the date of issue of bonds
of such subsequent issue, as such date
shall be fixed in such public offerings,
and terminating six months after such
date of issue, and under such rules
and regulations as the Secretary of
the Treasury shall have prescribed
The bonds to be issued upon such CON
version of bonds CT the present series
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 conyertibility (if future bonds be
H. srk. - ~.