The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1917-10-26
Liberty Lean Bonds What
They Are and How Obtained

The bonds Of the second issue of the Liberty Loan are to be issued
under the act of Congress approved by the President September
The amount of the issue will be s%SOOOOoOooO or more;
in excess of that amount to the extent Of onehalf Of the oversub.
scriDuOn. That is. if s%5OOOOOOOOo is subscribed the right is reserved
to issue %s1O00OO0OO0 more than the $3OOOO00OOO
The bonds will be offered for sale on October / 1917, and sub
oa56ss4 = will be received until the close Of the business day Of
The bonds viii bear date November Is. 1917, and viii mature
November 10, 1942. But the Government reserves the right to call
in and pay the bonds in full. with accrued interest any time after
10 years after their date.
Eis believed that the second Liberty Loan, like the nrst issue
of Liberty Loan Bonds, will be heavily oversubscribed, but no matter
how largely oversubstribed the policy Of distributing these bonds
as widely as possible among the people of the country will be followed,
and every subscriber to an amount Smts not greater than $1,000 is sure
Subscribers to larger amounts will receive an allotment based
on the amount of the bond issue and its proportion to the amount
OF subscription. What proportion of their subscription they will
obtain will not be known until all subscriptions are in
The main differences between the bonds of the first issue and
the bonds of the second issue of the Liberty Loan are ~ they
run for only % years instead Of 80, and may be redeemed by the
Government in 10 years after date instead Of 10; 90 they bear
per cent interest instead of SA per cent; (O they are liable to sur
taxes and excessprohts and warproHts taxes Except as to the ii.
terest on $4,000 in the hands Of any holderli t) allotment may be
'''l Ts nD Dsn of r.. payment egnSs+ttb is s HeiG god different 5Sg hear . no. COZ, ,n,u
interest the interest being payable semiannually on May 10 and No
vember 10 of each year.
The bonds are exempt both as TO principal and interest, from
all taxation now or hereafter imposed impose by by the United States any
taxing authority, except (D estate or inheritance taxes, and Q) grad
uated additional income taxes, commonly known as surtaxes. and
are not liable to the ordinary Federal income tax.
The interest on an amount Of bonds the principal Of which does
not exceed $4,000. owned by any individual, partnership, association
or corporation, are exempted from the taxes provided for in clause
The right is given to holders of the bonds to exchange them for
bonds bearing a higher rate OF interest If any such shall later be
issued by the United states before the termination of the war This
conversion privilege must be exercised, if at all. within six months
after the issuance of such higherrate bonds
The second issue Of Liberty Loan Bonds viii be of two kinds.
registered and coupon,
The registered bonds will be registered at the Treasury in the
names Of their owners and will be OF the denominations of $50 SlOO
$500. $1,000, $1,000. $4,000 and 100000 Checks for the interest on
these bonds will be mailed from the Treasury to the owners each
semiannualinterest date.
The coupon bonds viii be payable to bearer and will have coupons
attached for the interest They will be in denominations OF $50. 500,
$500, $1,000. $1,000 and $4,000. The coupons can be cashed like a
Government check at any bank.
The coupon bonds of this loan will have only four coupons at
tached, representing the semannual interest for two years. Between
November 10, 1919, and May 10, 1920, the holders of coupon bonds
These temporary bonds are issued because the work of engraving Sc
many bonds with so large a number Of coupons attached cannot be
completed within a reasonable time for delivery
Bonds OF the second Liberty Loan can be purchased by filling
out an application blank made on the form prescribed by the Secre.
tMy Of the Treasury, which can be obtained from any bank or Liberty
Loan committee, and sending II or having it sent 10 the Treasury OF
the United States o any Federal Reserve bank or branch. accom-.
panied by the payment of ? per cent Of the amount Of bonds an
piled for
These applications must reach the Treasury Department a Fed.
eral Reserve bank or branch thereof, or some incorporated or trust
October p, 1917. Practically every bank in the United States will
willingly receive these applications and handle the whole nsaeti
Of the purchase Of bonds for any subscriber.
A purchaser may pay in full for his bonds at the time of making
his application or, II he so prefers, he can take advantage of tbe
instalment plan and pay 2 per cent on application. Is Der cent m
November IL, 1917, 40 per cent on December Is. 1917. and The re-
naming 40 per cent on January 10. 1915.
Although so far as the Government is concerned the unrcbas.
price for the bonds must be paid as above, nearly every bank In the
country will make arrangements by which Liberty Loan Bonds ear
be paid on an installment plan providing for weekly q monthly nay
ments, and a great many employers win make the same arrangements
for their employees.
Payment can be made TO the Treasury Department or 70 r ~.
OF the Federal Reserve banks. but purchasers are urged to make 4bslr
payments to the banks or other agencies with 9hom they placed
their subscriptions