The Bridgeport evening farmer., 1917-09-08
NEXT LOAN TO BE
THREE BILLIONS
M'AD00 SAYS
Second Bond Issue to Pay 4
Per Cent. Unless Con-
gress Balks.

Washington, Sept. s-The next Lib
erty Loan will be $3,00O,0 100000. This
amount was decided upon yesterday
by officials of the Treasury Depart
ment after a long series of confer
ences with the leading ffnanciers and
bond experts of the country, who
have been almost unanimous in ex-
pressing the opinion that it would
prove a serious mistake to attempt to
raise any amount larger than this at
present.
Though this amount will not meet
all the requirements Of the next few
months, Secretary McAdoo is con-
WINGED that it is better to float loans
in blocks of not larger than $1,000
100000 until the American public
has become better educated in in
vestments.
Preparations are under way at the
Treasury Department and in the
Federal Reserve Bank districts to be-
gin the campaign for the sale of the
bonds promptly on Oct. /, and the
only thing that is standing in the way
of completing the final details of the
campaign is the failure OF Congress
to act swiftly in connection with the
new war finance BILL so that circulars
and other mailing material ANNOUNCE
ing the terms of the loan can be pre-
pared. AS soon as the bill becomes
a law and receives the Presidents
signature this announcement will be
Forthcoming from the Treasury De-
partment however.
The Treasury Department Is pre-
pared to announce the rate CT interest
on the next loan at per cent, and
only radical alteration in the text
of the bill in the. Senate will force a
change in the present plans. AS to
the other terms and details of the
loan, they are expected to follow
closely those of the first Liberty
Loan.
1t is the opinion of officials of the
Treasury Department and bankers
who have conferred with Secretary
McAdoo that the bonds should run for
thirty years, but that the Government
should have the option of retiring
them at par and interest at any time
after the first fifteen years. The pay
ments of the last loan were carried
out without the least disturbance OF
money market conditions, but as the
new loan will be 200, 100000 larger
it is expected that the payments will
cover a. longer period, and not more
than 20 per cent. will be called in al
any one time.
THE question of the denominations
of the bonds is not decided at present
but indications are that the srnal1es,
will be $50. It is realized here thai
there is need for a smaller bond, but
under the present system no plan has
yet been devised under which bond
Of S25 or smaller could be issued with
/ out requiring great amount of detail
work. "a -
Certificates We're Confusing
1t is probable that the system oi
participation certificates used in the
last loan will also be discontinued
this time. A large number of these
were sold in the first campaign, bu
they were confusing to the average
bond purchaser, and for this reason
not so many were sold as was ex
pected.
The Senate received today from thu
| House the new war finance bill, ant
will begin its consideration, according
| to present indications, immediatel.
after the disposal of the revenue bill
There is some misunderstanding her
| as to the feature OF the bill which
makes the new bonds taxable. Thu
/ original Liberty Loan bonds were alb
/ solutely free from taxation.
The new bonds, at per cent, will
| be exempt from most taxes, but will
| be liable to the surfaces of the incom
| tax, and also to the inheritance tax
| es, the idea being to prevent the pos
SCISSORS, of large fortunes from escap
ing taxes by investing their money II
the new Liberty Loan bonds. TIL
average buyer, however can escap
i taxes, because he will not be affecte,
by the inheritance taxes or by the sur
taxes.