Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1917-09-28
SECOND ISSUE Of LIBERTY
BONDS OFFERED PUBLIC ON
OCTOBER THE. FIRST NEXT
Secretary McAdoo Makes An
nouncement Outlining Plan
of Next Bond Issue. Bonds
Are Four's and Convertible.
(By Review Leased wire)

hOOIll-N0 O-N, sept -t--ocCISldiS y
McAdoo tonight announced the details
of the second Liberty Loan which will
be offered 10 the public October l. The
chef features are:
Amount, $3,O00.O0O, 900 or more,
the excess not to exceed one-half
of the amount OF over-subscription.
Term of bonds, maturity 25
years; redeemable at the option
of the secretary of the treasury
in ten years.
Denominations of bonds, $50
and multiples of $50
Interest rate, 4 per cent, payable
seni-annually on November Is,
and May Is.
Terms of payment, two per cent
upon application, Is per cent No
vember Is; 40 per cent December
IA and 40 per cent Jan. Is, 1918.
The privilege of converting
bonds of this issue into bonds of
any succeeding issue bearing
higher interest rate than four per
cen. during the period of the war
is extended, and through an ar
rangement the bonds Will be
printed with only fur coupons in
stead of Ito be exchanged at the
end of two years for bonds con-
tanning the full number of cou-
pons), deliveries will be prompt.
In this manner the issue of in
term certificates will be avoided
Secretary McAdoo's announcement
reads as follows:
Four Per Cent.
with the approval of the president,
| have determined to offer on October
l, 1917, three billion or more dollars of
United States of American four per
cent convertible gold bonds, due on
November Is, 1912, and subject 10
redemption at the option Of the United
.ates at par and accrued interest on
an after November Is, 1917. The
bonds will bear interest from Novem-
Der Is, 1917 and the interest will be
payable on May Is, and November Is,
in each year.
Amount Depends.
The exact amount of bonds to be is
sued under this offering will depend
upon the amount of subscriptions re-
ecived. St is of course, to be expect
ed thai subscriptions considerably in
excess of three billion dollars will be
received, and in that event the right is
reserved to allot bonds in excess of
three billion dollars to the extent Of
not more than over one-half of the sum
by which the subscriptions received
exceed three billion dollars. In other
words, if subscriptions to theenxtent
of five billion dollars are filed, four
billion dlolars of bonds may be allot-
ted
The bonds will be offered as be-
fore at par and accrued interest and
will be Oh denominations Of $50 and
multiples thereof.
Tax Exempt.
The bonds shall be exempt, both
as to principal and interest from all
taxation nof or hereafter imposed by
the United States or by any Focal tax
ing authority. (a) estate or inheritance
taxes, and (b) graduated additional in
come taxes, except commonly known
as sur-taxes and excess profits and war
profits taxes, now or herater imposed
by the United States upon the income
profits of Individuals. partnerships, as
sociations or corporations.
THE interest of an amount bonds
and certificates authorized by the said
act, the principal ot which does not
exceed in the aggregate $4,000, owned
by any individual, partnership, associ-
alton or corporation, shall be exempt
from the taxes provided for in clause
(b) above.
Bonds Convertible.
IF subsequent series of bonds, mot
including United States certificates of
Indebtedness, war savings certificates
and other obligatinos, maturing not
more than five years from the issue Of
such obligations, respectively bearing
interest at a higher rate than four per
cent per annum, shall under the aut-
thority of said act approved, Septem-
Der "a, 1917, or any other act, be Is
sued by the United States before the
termination of the war between the
United States and the imperial Ger
man government (the date of such
termination be fixed by proclamation
of the president Of the United States).
then the holders of bonds of the pres
ent series shall have the privilege at
the opinion of the several holders Of
converting their bonds, at par. into