The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-10-03
SECOND LIBERTY LOAN.
CALL ISSUED FOR SUBSCRIP.
TIONs no $4,000, 600, 900 OF
BONDS,
secretary McAdOO Announces Details
OF Loan and Calls ON People tn
Rally to Support Of the Govern
mcnt.

Washington. Sept. 27.-Secretary
McAdoO tonight announced the de-
tails of the second Liberty loan,
which will be offered to the public
October 1. The chief features are:
Amounts. 900. 100000 or more,
the excess not to exceed one-half Of
the amount Of over-subscriptions.
Terms Of bonds-Maturity. 25
years; redeemable at the option of
the secretary Of the treasury in ten
years.
Denominations Of bonds-Fifty dol
lars and multiples OF $50.
Interest rate-Four per cent pay
able semi-annually on November Is
and May 15.
Terms Of payment-Two per cent.
upon application; IS per cent. Novcm-
ber Is, 40 per cent. December ID,
and 40 per cent. January 13. 1918.
The privilege of converting bonds
Of this issue into bonds of any subse-
quent issue bearing a higher interest
rate than per cent. during the pc
riod of the war Is extended, and
through an arrangement under
which bonds will be printed with
only four coupons instead OF SO (to
be exchanged at the end of two years
for the bonds containing the full
number of coupons). deliveries will
b., prompt. In this manner the is-
sue IL interim certificates will be
avoided.
| Secretary McAdoo's announcement
reads in part as follows:
with the approval Of the presi-
dent, have determined to offer on
October /. 1917. $4,000, 900, 900 or
more of American per cent. con-
vertible gold bonds, due on Novem-
ber Is. 1S42, and subject to redemp-
tion at the option Of the United
and after November Is, 1897. The
bonds will bear interest from Novem-
her Is, 1917. and the interest will be
payable on May Is. in each year j-"A'
| "The exact amount OF bonds to be
issued under this Offering will depend
on the amount Of subscriptions re-
ceived. 1t is expected subscriptions
in excess of $4,000, 900, 900 wfll be
received and in that event the right
IL reserved to allot bonds in excess
OF $4,000, 100000 to the extent of not
over one-half of the sum by which
the subscriptions received exceed 49,
000,000.000. In other words, If sub
scriptions to the extent Of $5, ,OOO, ,OOO,-
900 are filed $4,000. 900, 900 of bond:
may be allotted.
| THE bonds will be offered as be-
fore at par and accrued interest and
be in denominations Of $50 and mul-
tiples thereof.
| The bonds shall be exempt, both
as to principal and interest, from all
taxation except (a) estate or inheri-
tance taxes, and (b) graduated addi-
tional income taxes, commonly known
as surtaxes and excess profits and
war profits taxes. The interest
Il n of
ctaes authorized by said act, the
principal Of which does ont exceed in
the aggregate $1,000, owned by any
individual, partnership, association OF
corporation. shall be exempt from the
taxes provided for in clause o.
above.
III subsequent series of bonds
(not including United States certin-
Gates OF Indebtedness, war saving cer-
tificates, and other obligations ma
turing not more than five years from
the issue Of such obligations, re-
spectively bearing interest at q high
shall be issued :. :. before
the termination Of the war between
the United States and the imperial
German government then the holders
OF bonds of the present series shall
have the privilege at the option of
the several holders, of converting
their bonds, at par, into bonds bear
ing such higher rate Of interest. at
the issue price Of bonds or such
subsequent series not less than par,
with an adjustment of accured inter-
est :.
subscription for the bonds must
reach the treasury department,
Washington. d. c.. federal reserve
bank or branch thereof or some in
corporated bank or trust company in
the United States on or before
the close Of business October 81,