Evening journal., 1918-07-18
Mr.. NJ 'ADO9 URGES
BOND Conversion
Exchange for Registered
Liberty Issues Recommend
ed as Safety Measure
MOST OF SECURITIES
PAYABLE TO BEARER

WASHINGTON, July is-The advls-
ability Of conversion OF coupon bonds
Of Liberty Loan issues to registered
bonds was strongly urged by Secretary
McAdoo in addressing a railroad admin
istration circular TO employees Of roads
under Federal control. What Mr.. Nc
Adoo said to the railroad men applies
equally to the general public holding
bonds.
"A large number Of railroad men,"
the circular stated, "are holding an in
vestment security for the first time.
The majority OF the bonds so held are
carefully guarded against loss or theft.
They are payable to bearer. II they
are lost, payment on them csnnot be
stopped and they cannot be replaced by
the Treasury Department.
Coupon bonds are suitable for IN
vestors who possess safe-deposit boxes.
Registered bonds are provided TO meet
the needs Of persons who have no safe
place Of deposit.
Registered bonds are issued in the
name OF the owner, which appears on
The face. The interest is paid by United |
states check, drawn 10 the order OF |
the owner and sent him by mail. II |
a registered bond is stolen, the thief |
cannot use 10 except by forgery. and |
the payment OF the bond or the inter |
est checks may be stopped. The bond
Itself may be replaced on proof Of loss
and II proper security Is given. The
number Of coupon bonds outstanding in
the hands Of railroad men, many of
them kept, doubtless in places afford
ing no real security, is such vast ag-
gregate amount that IL causes serious
concern. This is a wholly unnecessary
risk. The director general Of railroads
strongly advices that you
register your Liberty Bonds"
Directions not only for registering
Liberty Bonds but also for converting
3 i-2 per cent. bonds and per cent.
bonds into bonds paying 4 Ia per cent. |
Interest were issued as follows:
In order to register a coupon bond,
the simplest way Is TO consult repu- .
table local banker; otherwise, a letter
to the Secretary of the Treasury, divi-
sion OF loans and currency, Washing
ton, will get you Form 1881" which
Will contain blank spaces for all the
Information that the Treasury Depart
ment needs TO issue the registered bond
in your name. The coupon bond must
then be forwarded with this blank to
the Secretary Of the Treasury, dlsision
OF loans and currency, Washington, or
10 any Federal Reserve bank, by ex-
press, at It's declared value, or in any
other way protecting the owner against
possible loss.
The Treasury Department makes no
chafge whatsoever for registering bonds
The registered bond Will be delivered
to the owner by registered mail with
out expense.
II the coupon bond TO be exchanged
for a registered bond is a 3 i-2 or 4
per cent bond, II may be converted
(until November next into a t-2 "
per cent. bond at the same time that Il I
S forwarded for registration. This may r
20 done through the banker also; the e
ecrebsry division OF loans and cur s.
ency) will send on request form l. a
nd C %" This form contains the re- l.
uest for conversion on the face, and u
n the blank under mo. 4" the request r.
o register the bond; so that the whole
transaction (both conversion and reg IN
itration) may be handled on the one w
Drm. Hence, IL you merely want TO u
egister, ask for form i03i;n II you IL
lish to both register and to convert OF
ITO bonds bearing the higher interest OF
ate, ask for form L and 25." ca
II the bonds to be converted are the ol
lrst Loan 10 per cent. bonds, the ID
ates OF payment Of interest are such D'
hat the United States must be paid II
he dlffeence between 10 and ia pI
Ier cent. from June 81 10 the date Of r1
'ayment Tho bondholder gets this =
money back on Decembe 10. because the =
interest payable on that date Is al the .
ate OF ia per cent. from June 10. n
rhe amount Of the interest adjustment u
n this special case OF the 3 t-2 per cent. y
ponds will be shown in a table that =,
he Treasury Department will furnish !.
1n request Interest table No. 3d. For y
example, on a 500 bond converted on
July i5, no would have TO pay six !,
,ents. The money may be paid by post !.
)fllce or express money order, payable =
10 the order Of Treasurer OF the United :
states, second conversion account i
No payment is necessary II i-2 per =
,ent. bonds are merely 10 be regis
.ered without converting into 4 Ia /,
Der cent. bonds. n
The Treasury Department issues de-
allied regulations covering registration ,
md conversion Of bonds, known as -
rculars No. 400 and ia, which may
,e had on request from the Treasury :
department. or Federal reserve banks.