Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-07-21
EXPLAINS CONDITIONS
AFFECTING LIBERTY LOAN
Secretary McAdoo IxsueR Statement
Through Federal Re-
serve Bnn1SR.

Through Federal Re-
serve BnnlSr.
Because of erroneous Impressions
prevailing in certain quarters as to tho
exchange Of Liberty loan bonds and
interim certificates. Secretary of tho
Treasury William C. McAdoo has just
sent to Federal reserve banks state
mcnt in nm effort TO correct all misun-
derstand'ng and dispel confusion. Gov
ernor George ]. Seay made public tho
statement yesterday. which is as fol-
lows:
There seems to be Misrepresentation
as to the conditions affecting the e4-
change OF Liberty bonds and OF interim
certificates of different denominations
to the numerous people throughout the
country who have subscribed for $50
and 500 bonds that this misapprehen-
sion should be removed. To illustrate
the confusion which seems to exist
there appeared In New York paper
recently the following statement: The
$50 bonds have been selling much
lower than the higher denominations
and this has been due to the 81 fee
the government collects on every trans
fer. which in the case of the $50 bonds
Is comparatively heavy. a person who
purchases $1,000 IN $50 bonds. for ex-
ample. is obliged to pay a fee Of $50,
This statement Is erroneous. -,.s
IN the first place. no definite bonds
have as yet been delivered and there Is
no charge whatever for the exchange
OF interim certificates Of different de-
nominations. nor will there be any
charge. when the definite bonds are
ready, for the issue OF such bonds OF
whatever authorized denominations
may be requested. against surrender Of
an equal aggregate amount of full paid
interim certificates of whatever denom-
:natfon. There will be no charge, for
instance. for the exchange OF ten 500
certificates for one 81 900 certificate for
ten 500 bonds. Consequently. there Is
no possible reason for any difference
in price at the present time on account
OF the different denominations OF the
interim certificates.
I'm the second place the provision
of department circular No. 7S dated
May II. 1917, in relation to the in
terchanGe OF bonds OF different de-
nominations. is to the effect that such
an interchange will be made upon
payment. If the secretary of the treas
ury shall require. of n charge not ex-
ceedins 81 for each new bond issued
upon such exchange The secretary Of
the treasury has not determined
whether, when the definitive bonds
nave once been issued. to require the
payment OF any charge for tho ex-
Sh'tlEe Oh ponQS or din erent denomfna-
tons. nor. II required. what the amount
Of the charge shall be; but In any
event the charge cannot exceed 81 for
each new bond issued upon tho ex-
change. Thus. upon surrender Of
twenty $50 bonds for exchange for one
$1,000 bond the maximum possible
charge for making the exchange would
be 81 (since only one new bond would
be issued). instead OF $50. as stated by
the newspaper referred to.
TO summarizes: The fact Is that at
present there IS no charge. that there
Will be none until after the interim
certificates have been exchanged, freq
OF charge. for bonds of whatever au-
thorlzed denominations the holders de-
sire. and that thereafter a person max.
ing an exchange of bonds mot interim
ccrtiicates) for bonds of different de.
nominations. might. if the Secretary Of
the Treasury should require II, be
Obliged to pay an amount which could
not exceed 81 for each new bond issued
upon such exchange. the amount OF
which charge would be quite unaf.
fected by the numbers or denomina-
lions OF the old bonds surrendered for
exchange"