New-York tribune., 1917-05-03
Size of Bonds to Put Them
in Reach of Small
Investor
Many Agencies
For Subscription
Bonds, Free from All Taxa
ton, to Pay 3 IL
Per Cent

zion. NAY SECRETARY NJ
s5oo announced tonight that the first
Offering o. bonds authorized under the
vsr fnsrce law would be a $4,000. .O0O,
900 liberty loan issue, open TO popu-
lar subscription at par. and that sub
s,riptiors would be received till June
Is next The bonds will be dated July
and viii be ready for delivery on
that date.
Although many organizations IN ad-
sition 20 the banks OF the country will
be utilized in floating the bonds. the
twelve Federal Reserve banks will be
designated as central agencies in their
respective districts. receiving subscrip-
tons. delivering the bonds, and caring
FOR other details The proceeds of the
issue viii be deposited in as large a
number Of banks throughout the coun-
try as practicable, and Will be with
drawn gradually.
Interest on the bonds will be payable
ssmi-snnually on January 1 and July
/. Details as 10 their denomination
have not yet been prescribed, but the
lowest denomination, it was announced,
will be so small as 70 place the bonds
within the reach of every investor.
Among the agencies which will be
authorized to accept subscriptions Mr..
McAdoo designated banks. trust COM
panies. private bankers, bond houses.
postohees, express companies, de-
partment stores, newspapers and
other volunteers who have come
forward in great numbers" Many
offers Of assistance have been received
from Wonen's organizations, and as
soon as possible the Secretary will or
esnIze a woman's committee 20 assist
IN the work of obtaining subscriptions
ar q distributing the issue.
a large oversubscription, Mr.. Nc
Adoo announced, appears likely.
Secretary MeAdoO's Statement
In a statement making the announce
meut. Mr.. McAdoo said:
81 have determined 10 make an
initial offering of s2,000,0OO,0O0 of the
so per cent liberty loan Of 1917.
The bonds will be dated July l. 1917,
with interest payable semi-annually
January ! and July /. The maturities
will be announced later. In accord
snce with the provisions Of the act,
the bonds will be convertible into
bonds bearing a higher rate Of interest
than 3l2 per cent il any subsequent
series Of bonds shall be issued at a
higher rate of interest before the ter
mination Of the war between the
United states and the German govern
ment.
The liberty loan will be offered at
par ss popular subscription, ard
ample opportunity will be given TO
eyery man and woman in the United
States VINO wishes 10 subscribe TO Sc
cure an absolutely safe investment, free
from Federal, state or local taxation
except. of course, inheritance taXes).
The bonds will be in such denomlna-
lions as will put them within the reach
Of every investor. Details as 10 de-
nominations, redemptions, etc, have
not been fully worked out, but an
neuneement will be made in due sea-
son.
~Allotments will be made as rapidly
after June 10 a. possible. The details
as 70 manner Of payment for the bonds
will be announced later. Il is sufficient
10 say az the moment that payments
VIII be arranged in such way as not
10 cause Inconvenience or disturbance.
Deposits Of funds will be made in as
large a number Of banks throughout
the country as practicable, and they
viii be withdrawn as gradually as the
requirements Of the government Will
permit, in order that the minimum
amount OF money shall al any other
tine be taken out Of the channels Of
business.
should Stimulate Business"
"Since the great bulk Of the credits
10 be established for the foreign gov
ernments IS required for purchases
made in this country, the operation
w1.l be largely d transfer, or exchange,
Of credits. and should have a stimulat-
lng and helpful effect upon the general
business and financial situation.
The initial issue has been deter
mined BY the essential requirements Of
our own government for the conduct Of
the war and necessities of the foreign
governments 10 which credit is being
extended under the provisions Of the
sei approved April "a. 1917. After
having received advice and suggestions
IRON bankers. investment houses, bust
ness men and investors in all parts Of
the country. feel confident Of the
ability OF the market 10 absorb rapidly
and readily the $2.0OO,000,000 Offering
II Is immensely gratifying TO have
received such hearty assurances OF en- /
hrssstic and patriotic support from
every element Of the country IN MAX /
lhg this great Liberty Loan an over
Nnelmlng and striking success.
Among those who have offered their /
services are representative women, who |
are anxious 70 organize the numerous |
somen's organizations and clubs and 1
nave them actively enlist IN the move ,
"ent 70 distribute the loan.
The greatest immediate service the /
american people can render in this 1
var FOR universal liberty throughout !
ms world is TO furnish the means for |
~ vigorous prosecution. This bond /
este is the first step. ] earnestly /
oespeak the cooperation of every cit
zen throughout the length and breadth 4
% the land in this great service Of
Patriotism"
Income tar 1anu be doubled, | /