Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1917-10-12
THE SECOND LIBERTY LOAN

The bonds of the second issue of
the Liberty Loan are to be issued
under the act of congress approved by
the President September "a, 1917.
The amount of the issue will be
|, $3,000,000.0O0 or more; $4,000
coo, 600 will be offered, and the right
is reserved to alIot bonds in excess
/ of that amount to the extent OF one
/ half of the oversubscription. That is,
Il if $5,000,0O0,000 is subscribed the
right is reserved to issue $1,000
100000 more than the $4,000. OO0,-
600.
The bonds will be offered for sale
on October / 1917, and will mature
November 5, 1912. But the govern
ment reserves the right to cali in and
pay the bonds in full, with accrued
interest any time after 10 years after
their date.
The bonds are convertible gold
bonds and bear four per cent annual
interest, the interest being payable
semi-annually on May Is and No
yember Is of each year.
The bonds are exempt, both as to
principal and interest from all taxa
ton now or hereafter imposed by the
United States, any state, or any other
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 surtaXes,
and excess-profits and war-profits
taxes now or hereafter imposed. They
are not liable to the ordinary federal
income tax.
The interest on an amount of
bonds the principal of which does not
exceed $4,000, owned by any individ-
ual, partnership, association, or COR
poration, are exempted from the
taxes provided for in clause OBJ
above.
The right is given to holders of
the bonds to exchange them for
bonds bearing higher rate of inter
est if any such shall later be issued
by the United States before the ter
mination of the war. This CONVEX
sion privilege must be exercised if at
all, within six months after the issu-
ance of such higher-rate bonds.
: A purchaser may pay in full for his
bonds at the time of making his APP
plication or. if he so prefers. he can
: take advantage of the installment
, plan and pay two per cent on appli-
; cation, Is per cent on Novem Der Is,
! 1917, 40 per cent on December Is,
: 1917, and the remaining 40 per cent
, on January Is, 1918.
/ Although SO far as the government
! is concerned the purchase price for
! the bonds must be paid as above
nearly every bank in the country will
r make arrangements by which Liberty
/ Loan Bonds can be paid on an in
5 stallment plan providing for weekly
: or monthly payments and a great
r many employers will make the same
: arrangeme nts for their employees.
Payment can he made to the Treas
ury Department or to any one of the
Federal Reserve banks, but purchas-
ers are urged TO make their payments
to the banks or other agencies WITH
whom they placed their subscriptions
1t is hoped that on or about Oc-
. tober 10, 1917, a supply of these new
bonds ready for immediate delivery
to subscribers in amounts not in eX-
cess of $1,000 to any one subscriber
, will be in the hands of the several
Federal Reserve banks, to be deliv-
o cred to subscribers who pay in full
Plans are also being perfected where.
by banks all over the country can OBJ.
tain these bonds for prompt delivery
> to subscribers for amounts not over
$1,000.
The main difference between the
bonds of the first issue and the bonds
of the second issue Of the Liberty
Loan are % they run for only ,,
years instead of 30, and may be re.
:, deemed by the government in 1C
: years after date instead of 10: (2)
they bear four per cent interest in.
, stead of 3 y per cent; 60 they are
liable to surtaxes and excess-profit.
and war-profits taxes Except as t
the interest on $4,000 in the hand.
of any holder); (4) allotment may
be made to the extent of half of the
over-subscription; and (5) the in
stallment plan of payment is slight
~ different