Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-09-28
Secretary of Treasury Makes
Official Announcement of
Huge Loan Expected From
People of America.
a PER CENT INTEREST,
AND NOT TAXABLE
Not Less Than Three Billion
Dollars viii Be Raised and
Sum May Be Much Larger,
MCAdoo Says,

washington, Sept. 27--Sccroial-y
McAdoo tonight announced the de-
tails of the second liberty roam which
will be offered to the public October
!. The chief features are:
Amount-$3,0 ,000, 100000 or more.
the excess not to exceed one half of
the amount of over-subscription.
Term of bonds-Maturity in twen-
ty-five years; redeemable at the OPP
tion of the secretary in ten years.
Denominations of honds-Fifty dol
lars and multiples of $50
Interest rate-Four per cent, paya-
bic semi-annually on November l5
and May 15
Terms of payment-Two per cent
Upon application, IS per cent Novem-
Der Is; 40 per cent December IA, and
40 per cent January 15, 1918.
Bonds Convertible.
The privilege of converting bonds of
this issue into bonds of any succeed
ing issue bearing a higher interest
rate than per cent during the period
of the war is extended, and through
an arrangement under which bonds
Will be printed with only four coupons
| instead of fifty Ito be exchanged at
the end of two years for the bonds
containing the full number of cou-
pons), deliveries will be prompt In
this manner the issue of interim cer-
| tlficates VIII be avoided.
SecHFst,y McAdoo's announcement
reads as follows:
McAdoo's Announcement.
| With the approval of the president,
| / have determined to offer on October
! /, 1917, three billion or more dollars
OF United States of America per cent
| mn al de- a,
vember 10. 1912, and subject to re-
demption at the option of the United
States at par and accrued interest on
and after November Is, 1921 The
| bonds will bear interest from Noyem-
ber Is, 1917, and the interest will be
payable on May Is and November 15
ia each year.
THE exact amount of bonds to be
issued under this offering will depend
upon the amount of oyersubscrip-
tons received. II is, of course, to be
| expected that subscriptions consider
ably in excess OF three billion dollars
will be received, and in that event the
right is reserved to allot bonds in ex-
cess of three billion dollars to the ex-
tent of not over one-half of the sum
by which the subscriptions received
exceed three billion dollars In other
words, If subscriptions to the extent
Of five billion dollars are filed, four
billion dollars of bonds may be al
lCtted.
Exempt From Taxation.
The bonds will be offered as be-
fore at par and accrued interest and
will be in denominations of $50 and
multiples thereof.
The bonds shall be exempt, both
ln n al
! taxation now or hereafter imposed by
the United States, any state or any
of the possessions of the United States.
or by any local taxing authority, ex-
| cept (A) estate or inheritance taxes,
and OBJ graduated additional income
| taxes, commonly known as surtaxes
and excess 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 authorized by said act,
the principal OF which does not exceed
| IN the aggregate $1,000, owned by any
individual, partnership, association or
corporation shall be exempt from
the taxes provided for in clause (B)
| above.
| lntcTcSt Way bt Ilgifer.
If a subsequent series of bonds,
| (not including United States certifi-
Gates of Indebtedness, war saving cer-
tificates and other obligations, matur-
ing not more than five years from the
ISSUE of such obligations, respectively.
| bearing interest at a higher rate than
| 4 per cent per annum shall, under
| the authority of said act approved
September "a, 1917, or any other act
be issued by the United States before
| the termination of the war between
the United States and the German
! government (the cate or such termina-
ton to be fixed by proclamation of
the president of the United States),
then the holders of the present series
shall have the privilege at the option
of the several holders. of converting
their bonds, at par, into bonds bearing
such higher rate of interest, at the is
sue price of bonos of such subsequent
series, not less than par, with an ad-
Justment of accrued interest.
| When Change Can be Made.
such conversion privilege must be
exercised if at all. at any time within
the period, after the public offering
Of bonds of such subsequent series,
beginning at the date of issue of bonds
| Of such subsequent issue, as such date
shall be fixed in such public offerings.
and terminating six months after such
date of issue, and under such rules
and regulations as the secretary of
the treasury shall have prescribed.
The bonds to be issued upon such con-
version of bonds of the present series
shall be substantially the same in
form and terms as shall be prescribed
by or pursuant to law with respect to
| the bonds ~ such subsequent series.
not only as to interest rate but also as
to convertibili,s. (if future bonds be
issued at a still higher rate Of interest)