Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-23
BANKS BEGIN DELIVERY
OF LIBERTY LOAN BONDS
Seny SuERests PosslbilIty OF Higher In
terest Hate In New Issue Ex-
pected Shortly.

pccteu shortly.
With details of tho second issue Of
the Liberty loan bonds pending be-
fore Congress and strong intlmation
made that the rate OF interest will DO
per cont, as compared with 3h per
cont bonds of the first issue. George ].
Seay. governor of tho Richmond Fed
cral Reserve Bank yesterday suggest
cd to banks and trust companies OF
the Fifth Regional District that they
ascertain from their subscribers
whether tho subscribers desire to have
the bonds issued at this time. or pre-
fer to wait to learn the rate paid on
the second series.
Delivery of the first Issue will be
started by the Federal reserve banks
throughout the country on Wednesday,
but because OF the expense and risk IN
cident to the delivery and exchange
of certificates. and in view OF the fact
that in event the second issue is at
higher rate Of interest the bonds must
be exchanged, the suggestion was made
that II would be we'll for subscribers
10 await developments before request
ing their bonds. Officials OF the Rich
mond bank, however, have sent out to
banks and trust companies In the Fifth
District the proper applications for the
bonds.
Banks and trust companies should
received and tabulate the applications
OF their subscribers" said Mr.. Seay.
land make application to the Federal
reserve bank in bulk. covering in one
application, II possible, the entire
amount of bonds of each denomination,
for which certificates will be surren-
dered and exchanged.
anDarent that, II DendinR fagis-
lation should be enacted and bonds
should be issued bearing interest at
higher rate than 3h per cen, per
annum and exempt from the norma!
income tax. in view Of tho resulting
privilcs. Of conversion, the demand for
particularly those OF the small denomi-
nations would be greatly reduced.
at Is apparent also that much Of the
demand for bonds Of small denomina-
lions comes through employers and
others who have subscribed for bonds
for their employees and customers, un-
der arrangements allowing the latter
to make payments In installments over
an extended period. and. therefore. i'm
mediate delivery OF definite bonds is
not required
Employers, banks. trust companies
and others are urged to aid In relieving
the government and tho subscribers
"nOn tHey represent Oh tho trouble ana
expense incident to the delivery of
great numbers OF bonds In small de-
nominations at this time by retaining
or procuring tho retention OF the full
paid interim certificates until Congress
shall have acted IN the matter OF pond
ing legislation. and tho rate Of interest
% be borne By any new bonds and their
general character with respect to thei..
exemption from taxation and other
matters shall have been determined.
Although the machinery for the de-
livery OF the definite az per cent bonds
- thus set IN motion, II is repeated
ma: ubscribers may advantaEeously
await the determination OF the pending
legislation and the rate OF interest to
be borne by any new bonds and their
general character before exchanging
full paid interim certificates for def
mite az per cent bonds"
Figures just made available by the
Treasury Department show that tho
number of coupon bonds required to
make deliveries on subscriptions TO the
arst issue OF the loan is in excess OF
100000 pieces, Of which moro than
100000 and are OF the $50 and 800 de-
nomination. showing the popularity OF
the loan and the wide distribution OF
them among the people.