Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-09-28

W principal anu interest, from all TAX
alton now or hereafter imposed by the
United States, any state 81 any Of the
possessions of the United States or by
any local taxing authority, except, (a)
estate or Inheritance taxes. and OBJ
graduated additional income taxes,
commonly known as lsurtaxes, and ex-
cess profits and war profits taxes, now
or hereafter imposed by the United
States upon the income or profits of
individuals. partnerships. associations
or corporations. The Interest on an
amount of bonds and certificates auth
orized by said act, the principal Of
which does not exceed in the aggregate
$1,000, owned by any Individual, part
nership, association or corporation,
shall be exempt from the taxes provid-
ed for in clause OBJ above.
Bonds May Be Converted After War.
eff a subsequent series Of bonds
(not including United States certifi-
Gates of indebte dness, war saving GER
tifcates. and other obligations matur-
ing not more than five years from the
issue Of such obligations, respectively
bearing interest at a higher rate than
a per cent per annum shall, under the
authority of said act approved Sep
TENDER "a, 1917, or any other act, be
issued by the United States before the
termination of the war between the
United States and the Imperial Ger
mar government (the date OF such
termination to be fixed by proclama-
ton of the president Of the United
States) then the holders of bonds of
the present series shall have the priv
ilege at the option of the several hold
ers, of converting their bonds, at par,
into bonds bearing such higher ate
of interest, at the issue price Of bonds
OF sue subsequent series, not less than
par, with an adjustment of accrued in
terest.
Uniformity In Bonds.
conversion privilege must be
exercised If at all, at any time within
the period, after the public offering of
ponds OF such subsequent series, be-
ginning at the date Of issue of bonds
of such subsequent issue, as such date
be fixed in such public offerings, and
terminating six months after such late
OF issue, and under such rules and
regulations as the secretary of the
treasury shall have prescribed. The
'eonds to be issued upon such CONVEX
sion OF bonds of the present series
shall be substantially the same In
form and terms a. shall be prescribed
by or pursuant to law with respect to
the n of such subsequent series,
not only as to interest rate, but also as
TO conVertibillty (f future bonds be is
sued at a still higher rate of interest)
or non-convertibility, and as to exemn-
ton from taxation, II any, and in all
other respects, except hat the bonds
issued upon such conversion shall have
n same dates of maturity of prin-
clpal, and of interest, and be subject
10 the same terms Of redemption be-
fore maturity, as the bonds c%onyerted;
n such bonds shall be issued from
time TO time If and when and to the
extent that the privileges of conversion
SO conferred shall arise and shall be
exercised. $3.50 .
Campaign Closes Oct. p.
"1f privilege of conversion so
conierred shall once arise, and shall
not pc exercised with respect to any
oonds OF the present series within the
PERIOD above prescripe1, then such
privileges shall terminate as to snch
nonos ana shall not arise again houeh
thereafter bonds be issued bearing IN
terest at a higher rate. or rates than
4 per cent per annum.
SUBSCRIPTION for the bonds must
Ieach m treasury department, Wash
lnsLon, u. e., a federal reserve bank
VI prancn thereof or some t~ncorporat-
United States (not including ort,vine
territories and possessions) on ~ hae
Tore the close of business October 81
49,. me applications must be &C.
by a payment of 2 per cent
u .ne amount applied for, and sub
installments upon bonds al
iotteo Will be due as follows:
1S per cent On November IL 1917
~ per cent on December H. 1917.
~ per cen on January is, 1918.
On the latter date. accrued inter
est on the deferred instalImen+ lii
he payable. VIII
bonds To Be Delivered Soo
am very glad to be able to an
hounce that by authority the enerav-
ing OF these bonds with only four
attached instead of the full
numDer OF fifty coupons, it will be
possible to have the actual bonds
READY Tor delivery as soon as full paw
ments are completed, thus avoiding
the trouble n delay incident to the
of interim receipts or tenn
porary bonds. On and after Novem-
per 10. 1919, the holders of the bonds
Will nave opportunity to exchange
them for new bonds having attached
thereto coupons for the balance Of
the period for which the bonds will
run. ~ wa
1T is also expected that on or about
october 10. 1917, there will be in the
hands of the several federal reserve
banks a supply Of these new bonds
ready for immediate delivery to sub
scr1bers in amounts not in excess OF
one thousand dollars to any one sub
scriber against payment in full, there
by avoiding in such cases the trouble
incident to waiting until after allot-
ment for delivery.
Ten Million Subscribers Expected.
plans are also being perfected
whereby the hanks all over fho oo,,n-
try gan obtain bonds for the making
Of prompt delivery against these small
subscriptions. AS the bonds will bear
interest from November ID, and as
those who pay in full prior to that
time will mo- obtain any interest on
their bonds until hat date, this is Of
fered as an alternative proposition to
those who are anxious to obtain Inn