Evening journal., 1918-03-26
THIRD LIBERTY loan
TO BE FOR 5 BILLION
Bonds TO Bear Interest oil
A "A Per Cent, McAdoo
Announces
SEES COST OF
WAR DROPPING

WASHINGTON. March 26.-Secretary |
of the Treasury McAdoo has announced /
that the amount of the third Liberty
Loan viii be S3,00OOOOOOO and thai the
interest rate will be ia per cent.
Although the minimum sum to be I
sought through subscriptions in the
campaign. beginning April G. viii be the
amount named. the Secretary Will ac-
cept an oVersubscriptions, there being
no limit on the total amount to be
raised
The new bonds will not be CONVEX
tlble in order, Secretary McAdOo said, |
ITO put an end TO the expectation OF
higher rates Of interest Secretary
McAd0o, in conference with Represen- /
tatiye Kitchin, Of North Carolina,
chairman Of the House Ways and
Means Committee, asked for an author
izatiOn OF SEA 50O00000O I'M new bonds,
which. with the S3666,233,s5O in bonds
authorized last October but not yet is
sued. gives a total Of more than 49,
O00O00O00 which may be sold, but the
Secretary of the Treasury asserted that
this sum would cover future issues.
McAdoo's Statement
Secretary McAdoo issued this state
ment -
'Tho Secretary Of the Treasury In
conference with Mr.. Kitchin, chairman
Of the Ways and Means Committee, to-
day outlined his plan FOR the third Lib
erty Loan Actual expenditures Of the
United States Government and OF the
allied Governments, having been much
less than had been indicated by the es-
Inmates. the amount of the next loan
will be only s3,0O00OOOO0 the right be-
ing reserved TO allot over subscriptions.
1.-The Secretary will ask authority
from Congress to issue bonds bearing
interest at the rate Of 4 ia per cent.
per annum, acceptable at par and ac-
crued interest IN payment OF United
States inheritance taxes and having
the benefit Of a sinking fund OF 1--WE per
cent per annum during the period OF
tie war and for one year thereafter.
1t is the belief Of the Secretary that
the rate now proposed is sufficient and
that. by restricting unnecessary capital
Issues and by inducing the people who.
subscribe for Liberty bonds to save and
keep them for investment, and bytpur-
chases with the sinking fund from
those who find themselves compelled
10 sell, future Increases in the inter-
est rate may be avoided. In order to
put an end TO the expectation Of higher
interest rates, it is proposed that the
conversion privilege shall be elimin-
ated from the new bonds, but the hold
ers OF Liberty bonds OF all existing is
sues will be given an opportunity to
convert their bonds into the new IA
per cent bonds.
TO Ask Authorization.
IN addition 20 the foregoing princi-
pal items Of the proposed campaign,
(annruuu rrriII an uulfaa narNhgnffar
Tor bonds to the amount Of si,50O0O0,-
600 In addition to those now authorized.
in order 10 provide for future issues (;
FOR authority 10 issue additional Treas
ury certificates Of Indebtedness. for
authority TO make additional loans TO
the allied Governments during the sum-
mer and authority for deposit and in
come profits taxes with national banks
State banks and trust companies
throughout the United States in the
same manner as the proceeds Of the
Liberty Loans.
N "I am sure that the people will re-
spond to the third Liberty Loan with
the same loyalty and enthusiasm that
characterized their support Of the first
two loans The great events now hap
pening in France must fire the soul Of
every American with a new determine
the material resources Of America that
are needed to put an end TO the execra-
bic atrocities Of German militarism.
Defeat faces the Kaiser. Let us hasten
st, by asserting Americas might with
Increased vigor in concert with our
gallant comrades"
Country Is Ready.
Most bankers and business men with
whom Secretary McAdoO has conferred
lately. Indicated that they expected q
loan OF about S5O0O,O00.OOO at an in
terest rate higher tnan four and one
quarter per cent. They brought word
that tile country was ready TO absorb
that amount
Secretary McAdoo's advisers were not
unanimous In their opinion Of what the
interest rate should be, but practically
ell agreed that money market cOndi-
tions would be less disturbed by four
and a quarter per cent rate than by
four and One-haif The sinking fund
provision Of the third loan, which the
ilrst and second issues did not have, Is
expected to prove a strong influence IN
preventing bonds falling far below par
as other issues already have done
The necessity for further authorize
tion for certificates Of indebtedness
arises from the fact that about 1920
100000 already are outstanding ard the
treasury plans to issue more than 81
000000000 more before the third loan
closes, while the maximum authorized
under present law is si.00OO00OO0
Credits to allies now amount to S4,-
96060oO00, and about S2000,OOO,OO0 au-
thOrized loans yet remain to be exc
cuied This would not be sufficient to
continue the rate OF S50l000000 a
month through the summer months.
and consequently an additional authori.
zaii0n is asked by Secretary McAdoo
The amount Of this will be determined
by Congress.
To Prevent Accumulations.
The legislation to deposit tax col
/ iccfi0ns with bands Is sought as a
measure to prevent big accumulatlons