The Prescott daily news., 1917-10-11
.sEC'Y M 'ADOO G|vESFULL
 EXPLANATION OF SECOND
 LIBERTY LOAN BOND ISSUE
TREASURY HEAD OUTLINES IN. VEsTMENT AS IT AFFECTS BOTH LARGE AND SMALL
 SUBSCRIPTIONS -i ITS
 TAX EXEMPTIONS.
System of Interchangeable coupons Makes Early Delivery to Buyers Possible--Bonds Convertible
 Into Subsequent Issues.

second Liberty LoaA, which has inst been offered to the public. The chief features are:
 Amount, $S,000.OOO.OOO or more, the excess not to exceed one-half of the amount of oversubscription.
 Terms of Bonds-Maturity, 25 years: redeemable at the option of the sec. Tetary of the treasury in 10 years.
 Denominations of Bonds-S5O and multiples of $50.
 lntersst Rate-Four per cent, pay. able ssmi-annually on November ls and May Is.
 Terms of Payment-Two per cent upon application. Is per cent Nov. l5, tV per cent Dec. l5 and 70 per cent Jan. lb. 1918. The privilege of con. verting bonds of this issue into bonds Of any succeeding issue bearing c high. CT interest rate than ( per cent dur. ing the period of the war Is extended. and through aa arrangement under which bonds will be printed with only four coupons instead of 50 (to be ex. changed at the end of two years for the bonds containing the full number of coupons) deliveries will be prompt. In this manner the issue of interim certificates will be avoided.
 MeAdoo's Announcement.
 Secretary McAdoo's announcement reads as follows:
 With the approval of the Presi- dent l have determined to offer. Oct. ]. 1917. $3.0O0.000.000 or more worth of United States convertible gold bonds, due Nov 15, 1s42. and subject to redemption at the option of the United States at par and accrued in- terest on and after Nov. Is, 1927. The bonds will bear interest from Nov. Is, 1917, and the interest will be pay able on May 15 and Nov. 15 in each year.
 The exact amount of bonds to be issued under this offering will depend on the amount Of subscription re- ceived. 1t IS. of course, to be expected that subscriptions considerably in ex- cess of S3,000. 100000 will be received, and in that event the right Is reserved to allot bonds in excess of So 0O0.000,- 900 to the extent of not over one-hali of the sum by which the subscriptions received exceed SS,000. 900, 900. In oth- CT words, if subscriptions to the ex tent of S5.000. .000, 900 are filed S4000.- 100000 of bonds may be allotted.
 At Par and Accrued Interest.
 "The bonds will be offered as be- fore, at par and accrued interest, and will be In denominations of $50 and multiples thereof.
 The bonds shall be exempt. both as to principal and interest, from all tax ation now or hereafter imposed by the United States. any state or any of the possessions of the United States or by any local taxing authority except (a) estate or inheritance taxes and (bl graduated additional inc ome tax es, commonly known as SurtGxes, and excess profits and war profits taxes. now or hereafter imposed by the Unit ed States upon the income or profits of individuals. partnerships, associa-
  an amount of bonds and certificates authorized by said act the principal of which does not exceed in the aggre- gate S5.O00. owned by any individual. partnership, association or corpora tion, shall be exempt from the taxes provided for in clause (b) above.
 "If subsequent series of bonds (not including United States certifi- cate of indebtedness. war-saving cer- tificates and other obligations matur- ing not more than five years from the Issue of such obligations. respectively bearing interest at higher rate than { per cent per annum shall. under the authority of said act approved Sept. A. 1917. or any other act. be issued by the United States before che termi' nation of the war between the United States and the Imperial German Gov ernment (the date of such termination to be fixed by proclamation of the President of the United States). then the holders of bonds of the present series shall have the privilege. at the option of the several holders, of con verting bonds, at par. into bonds bear ing such higher rate of interest, at the issue price of bonds of such subse- quent series. not less than par. with an adjustment of accrued interest.
 Convsrslon Privilege.
 Such conversion privilege must be exercised. if at all. at any time within the period. after the public offering of bonds of such subsequent series. be- ginning ct the date of issue of bonds of such subsequent issue. as such date shall be fixed in such public offerings. and terminating six months after such date of isaua and under such rules