The Bridgeport evening farmer., 1917-12-05

LIBERTY BOND
LESSONS
By HOWARD SPEER
OF Hincks Bros. s. Co.
Lesson No. II.
What You Get and How You
Get 1t.
By HOWARD SPEER
OF Hincks Bros. s. Co.
Lesson No. II.

Vlded into two classes, those that own
1-2s and those that own As.
The owners of 1-2's are divided
Into three classes, those who have al
| ready converted into the As, those
who don't intend to convert, and those
who do intend to convert.
This lesson is for the last class only.
The other classes may leave the room
and needn't come back till later, as
| the teacher used to say to the lucky
ones who didn't have to take examina
tons because they were so smart.
First of all, anybody who is going
to exchange his 8 IL per cent. bond
for the per cent. bond ought to I'M
derstand clearly what he is going to
get.
! He will receive a 4 per cent. bond
which will be exactly like the 4 per
cent. bond of the Second Liberty loan
in all except three details.
The regular 4 per cent bond and
the 4 per- cent. bond he gets in ex-
change for his IL will have the
same privileges, benefits, advantages,
disadvantages, conversion rights, tax
exemption and tax liability features.
They differ only in the dates on which
they fall due, the dates on which the
government can call them in and pay
them off, and the dates on which they
pay their interest.
The regular per cent. bonds come
due in 1912. The government has the
privilege of paying them off in 1927
or any time thereafter. Their inter-
est is payable on the 18th days of
| Nov fy, I,
The IL per cent. bonds come due
in 1947. The government can redeem
them in 1892 or thereafter They pay
their interest each December Is and
June 10.
The per cent. bonds that you get
in exchange for LIS continue to
have those same dates that the 1-2's
have for final payment, earlier re
idemption, and payment of interest. In
other words, they come due in 1947,
are redeemable in 1882, and pay their
interest on December Is and June Is.
There are thus already three different
kinds of Liberty bonds in existence.
You will sometimes see the first is
sue spoken of as the thirty
year 1-2's, the second issue as the
ten-twenty five year AS, and the is
sue that you get in exchange for
8 1-2's as the fifteen-thirty year AS.
In these names the Fifteen" and the
ten" refer to the number of years
that must elapse before the govern
ment can compel you to surrender
your bond and take cash for ito AS a
matter of fact the government never
compels. If it wants to pay off an is
sue of bonds it simply gives due notice
of the fact and anybody who doesn't
choose to turn in his bond may hold
it as long as he pleases-but he won't
get any more interest on it. You may
find it hard to believe, but there are
some people who do that very thing
They are afraid of banks and afraid
of real money SO they just keep the
bonds! AS we have said before there
are lots of different kinds of people
in the worldly
The first actual step for you to take
in order to convert your IL per cent
bond into a per cent bond will be
to notify some bank or broker thai
you wish to convert, turning in youl
bond at the same time and taking g
receipt for it.
If you bought your bond from g
| bank or broker they will probably
make the exchange for you withou
charge of any kind other than enough
; postage to cover registered mail anG
correspondence.
If you did not buy your bond from
. a bank or broker, or if your owl
bank or broker insists on making {
charge for the service, there are, new
ertheless, reliable houses in this city
which will make the exchange for yol
free of charge except for such trif
, ling expenses as they themselves viii
have to incur. Naturally no names
can be mentioned in these lessons, blu
} we shall be glad to give the names
of such houses by mail to any who in
quire and enclose postage for reply,
J If yor prefer you can handle the ex.
change of your bond yourself by send
ing it direct to the Treasury Depart
ment at Washington or to the Fedora
Reserve Bank in Boston, New York
Philadelphia, Cleveland, Richmond
Atlanta, Chicago, st. Louis, Minneap
oils, Kansas City, Dallas, or SAL
Francisco.
, Be sure to send by registered mai
, and write the words receipt desired
l on the envelope.
y You must make your request TO
conversion on certain forms prepared
by the government. These forms ma.
I be obtained from banks and brokers
The government is very particula
l about matters of this sort and insist
upon them being dons exactly accord
ing to government regulations. Fo
I this reason it is best for the individual
not to attempt to do such things bu
to make use of the banks and broker
3 who are familiar with the require
I ments.
Next time we will discuss the fur
1 Their details connected with CONVEX
q sion.