The Tupelo journal., 1917-10-19
sEC'Y M'ADOO GVEsFuLL
EXPLANATION Of SECOND
LIBERTY LOAN BONO ISSUE
TREASURY HEAD OUTLINES IN.
VESTMENT AS 1T AFFECTS
BOTH LARGE AND SMALL
SUBSCRIPTIONS - IT'S
TAX EXEMPTIONS.
System Of interchangeable Coupons
Makes Early Delivery to Buyers
Possible-Bonds Convertible
Into Subsequent Issues.

washington, ID. C.-Secretary Nc
Adoo has announced the details of the
second Liberty Loan, which has just
been offered to the public. The chief
features are:
Amouht. 5000, 900. 900 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
rotary of the treasury in 10 years.
Denominations OF Bonds-S50 and
multiples of $40.
Interest Rate-Four per cent, pay
able semi-annually ON November Ii
and May 15.
Terms or Payment-Two per cent
upon application. Is per cent Nov. 10,
~ per zen Dec. Is and 40 per cent
Jan. 10, 1918. The privilege of con-
yerting bonds of this issue into bonds
Of any succeeding issue bearing a high
er interest rate than 4 per cen dur
ing the period of the val is extended,
and through an arrangement under
which bonds will be printed with only
tour coupons instead of so Ito 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.
McAdoo's Announcement.
Secretary McAdoo's announcement
reads as follows:
with the approval of the Presi-
dent l have determined to offer, Oct.
i, 1917, $4,000, coo, 900 or more worth
Of United States convertible gold
bonds, due Nov. 10, 1912, 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
sble on May Is and Nov. Is in each
year.
THE exact amount of bonds to be
issued under this offering will depend
on the amount OF subscription re-
ceiyed. 1t is, OF course, to be expected
that subscriptions considerably in ex-
cess of 5000, 000, 900 will be received,
and in that event the right is reserved
to allot bonds in excess of So, 900, 000,-
300 to the extent of not over one-halt
Of the sum by which the subscriptions
received exceed $4,000, 000, 900. In 9TH
er words, if subscriptions to the ex.
tent of SIS, O09, 900, 900 are filed 5 ,000,-
200 900 of bonds may be allotted.
At Par and ACCRUED Interest.
1.-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
alton 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
lb) graduated additional income tax
es, commonly known as s~urtaxes. and
excess profits and war profits taxes,
aow or hereafter imposed by the Unit
ed States upon the income or profits
Of individuals, partnerships, associa-
lions or corporations. The interest on
IN amount of bonds and certificates
authorized by said act the principal
of which does not exceed in the aggre-
gate $4,000, owned by any individual,
partnership, association or orpora-
lion, shall be exempt from the taxes
crowded for in clause (b) above.
If a subsequent series OF bonds
fnot including United States certifi-
cate of indebtedness, war-saving GER
lificates and other obligations matur-
ing not more than five years from the
issue Of such obligations, respectively
bearing interest at a higher rate than
4 per cent per annum shall, under the
authority Of said act approved Sept.
"A, 1917, OF any other act, be issued
by the United States before the termi-
nation Of the war between the United
States and the Imperial German Gov
eminent tthe 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.
Conversion 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 at 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 issue, and under such rules
and regulations as the Secretary of
the Treasury shall have prescribed.
The bonds to be issued upon such con-
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