The sun., 1917-09-08
NEXT LOAN TO BE
THREE BILLIONS
Second Liberty Bond Issue
Will Pay + Per Cent. Unless
Congress Balks.
Special Desps soh to THs Sex.

WASHINGTON, Sept. THE rrext
Liberty Loan will be $4,000, 900, 900. This
amount was decided upon to-day by Of
ficials Of the Treasury Department after
long series Of conferences with the
leading financ!ers and bond experts of
the country. who have been almost
unanimous in expressing the opinion that
II would prove a serious mistake to at
tempt 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 convinced that II is
better to float loans in blocks OF not
larger than $4,000, 100000 until the
American public has become better edu-
Gated in investments.
Preparations are under way at the
Treasury Department and in the Fed
eral Reserve Bank districts to begin the
campaign for the sale Of the bonds
promptly on October l. and the only
thing that is standing In the way Of
completing the final details OF the cam
paign is the failure Of Congress to act
swiftly in connection with the new war
finance bill. so that circulars and other
mailing material announcing the terms
Of the loan can be prepared. AS soon
as the bill becomes a law and receives
the Presidents signature this announce
ment will be forthcoming from the
Treasury Department. however.
Interest at 4 Per Cent.
The Treasury Department Is prepared
to announce the rate of interest on the
next loan at per cent. and only radi-
cal alteration in the text OF the bill In
the Senate will force a change in the
present plans. As to tho 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 payments of the last
loan were carried out without the least
disturbance OF money market conditions,
but as the new loan will be 81 l,o00, ,0Oo.-
900 larger IL is expected that the pay
ments will cover a longer period. aud
not moro than 20 per cent will be called
in at any one time.
The question OF the denominations of
the bonds is not decided at present but
Indications are that the smallest will be
$50. 1t Is realized here that there Is
need Tor smaller pOnu, out undeT tne
present system no plan has yet been de-
vised under which a bond of s25 or
smaller could be issued without reauir-
ing a great amount OF detail work.
Certificates Were Confusing.
1t is probable that the system OF par
ticipation certificates used in the last
loan will also be discontinued this time.
A large number of these were sold In
the first campaign. but they were con-
fusing 10 the average bond purchaser,
and for this reason not SO many were
sold as was expected.
The new bonds. at I per cent, will he
exempt from most taxes but will be
liable to the surtaxes of the income tax.
and also TO the inheritance taxes. the
idea being to prevent the possessors of
large fortunes from escaping taxes by
investing their money in the new Liberty
Loan bonds The average buyer how
ever can escape taxes. because he will
not be. affected by the inheritance taxes
or by the surtaxes.