Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1917-06-02
LIBERTY LOAN
BONDS; WHAT
They MEAN

DO you snow what a Liberty Loan
bond Is? Do you know why they have
been i5sued? Do you appreciate that
1t is a patriotic duty to subscribe?
Here 10 an explanation OF what they
are-what they mean. and why you
should suhscribe:
What is a Liberty Loan bond.
a Liberty Loan bond Is a solemn
promise of the United States to pay at
maturity the amount OF the bond 10
the holder thereof. and to pay interest
semi-annually each year from the date
OF the issuance OF the bond until IL 10
fully and finally paid.
What is the security for . Liberty
Loan bond?
The faith and honor OF the United
States. backed by all OF the resources
OF the nation and the American people.
a Liberty Loan bono is a mortgage on
all the resources and taxing powers OF
this government and all OF the re-
sources OF the American people.
What Is the nature OF a Liberty Loan
bond?
There are two kinds OF Liberty Loan
bonds. Bearer bonds are TO be issued
in denominations OF $50, 500. $500 and
$1,000. These bearer bonds. which are
made payable to bearer. have interest
coupons attached which are detached
Nv tHr hoiSar when the interest In
stallments they represent are due. and
.-n 49, ~esneu al any Dank the safne as
a United States treasury note.
Registered bonds are to be issued
which are registered as TO both princi-
pal and interest. in denominations OF
500. $500. 81. 600. IS. 900. SIC. 900. $50. 900
and 800. 900. checks for the amount OF
interest due will be mailed out semi
annually TO the holders Of these regis
tered bonds.
what are he terms OF a Liberty Loan
bond,
Liberty Loan bonds OF the first Is
sue OF $4,000. 900. 900 are to bear date
OF June Is. 1917. and 10 run for thirty
years. except that the government re-
serves the right 70 pay them fifteen
years after date. IL his light Ia not
years from date. the bonds will run the
full thirty years. N
These bonds bear interest nj az per
cent per annum. and the interest Is
payable s~emi-'nnually on the fifteenth
day of December and the fifteenth day
of June in each year.
What special advantages have these
Liberty Loan bonds
One special advantage no other
bonds. national. state. municipal. or
corporate. have Is that III the United
States during the continuance OF this
war shall issue other bonds at a higher
rate OF interest. the holders OF these
Liberty bonds have the right 10 ex-
change their Liberty bonds for bonds
bearing the higher rate OF interest.
dollar for dollar.
What other special advantages do
these bonds possess
They are nuntaxable. n your city.
county and state taxes are three
mills on the dollar. a not unusual tax.
these bonds are equivalent TO ordinary
corporation bonds or other Investments
bearing Ga per cent.
In addition no federal tax which war
conditions may later make necessary
will affect these bonds. The only tax
these bonds are subject 10 is the inheri-
snce tax. which applied 10 all property
Of all kinds whatsoever.
How are Liberty bonds o~btained?
Blank forms OF application for the
purchase OF these bonds can be OBJ
tained from the treasury department,
any federal reserve bank. any national.
state or private bank. any express Of
flee and any postoffice in the United
States Any bank or postmaster Will
aid applicant IN filling out his bla TX
and the other acts necessary to obtain
these ponds
II these ond are so desirable. why
Is u necessary TO advertise them ex-
tensively2
II Is not necessary 10 advertise these
bends 10 sell the whole issue. but II ia
earnestly desired that this loan shall be
a popular loan. a loan by and from the
people at large Of the United States
and not alone from banks. trust COM
panies and financiers. To that end
bonds are 10 be issued Of small denom-
nations and subscribers for small
an cunts are to be supplied before tho
subscribers for large amounts are
granted their fa- .-tScri-uon.