The Butler weekly times., 1918-03-28
LIBERTY LOAN 3 BILLION
Interest on New Bonds Set at a I'd
Per Cent.

Interest on New Bonds Set at 4 IA
Per Cent.
Washington, March 25.-Secretary
McAdoo announced tonight that the
amount OF the third Liberty Loan
would be 3 billion dollars, at ! II
per cent, and that all oversubscrip-
ton would be accepted.
The new bonds will be nonconvert
ible but bonds of the first and second
Liberty Loans may be converted into
the new i II per cent securities.
Authority to issue 1880 million
dollars in bonds in addition to the s.
ooo million dollars already authorized
and unissued is proposed in new loan
Legislation prepared for submission to
Congress SO that the total amount
which may be issued is 500 million
dollars.
Congress will be asked for authori-
ty to make additional loans to the
Allies during the coming summer.
The decision to make the new bonds
inconvcrtible, the secretary an
nounccd, was reached in order to put
an end to the expectation OF higher
interest rates.
Mr.. McAdoo said expenditures OF
the United States and the allied gov
ernments had been much below esti-
mates and that consequently it was
not necessary to make the loan larg-
er than 3 billion dollars.
Secretary McAdoo issued this state
ment:
The Secretary OF the Treasury, in
conference with MIR. kitchin, chair
man OF the ways and means commit
tee. today outlined his plan. for the
third Liberty Loan. Actual expendi-
lures of the United States govern
ment and OF the allied governments
having been much less than had been
indicated by the estimates, the
amount of the next loan will be only |
:, billion dollars, the right being re-
served TO allot over subscriptions.
The secretary will ask authority
from Congress to issue bonds bear
ing interest at the rate OF i II per
cent per annum, acceptable at par
and accrued interest in United States
inheritance taxes. and having the ben
eit of a sinking irnd OF per cent per
annum during the period OF the war
and for one year thereafter.
1T is the belief OF the secretary
that the rate now proposed is sutti--
cicnt and that by restricting unnec-
cssary capital issues. and by the
people who subscribe for Liberty
Bonds to save and keep them for i'll
vestment. and by purchases with the
sinking fund from those who lind
themselves compelled to sell, future
increases in the interest rate may be
avoided. In order to put an end to
the expectation of higher interest
rates. it is. proposed that the conver-
sion privilege shall be eliminated from
the new bonds, but the holders OF
liberty Bonds OF all existing issued
will be given an opportunity to con-
vert their bonds into the new 4 II
per cent bonds.
I'm addition to the foregoing prln-
cipal items of the proposed program
Congress will be asked for authority
to issue bonds to the amount OF T.
500 million dollars in addition to
those now authorized. in order to
provide for future issues; for author
ity to issue additional Treasury certi-
icates of indebtedness for authority
to make additional loans to the allied
during the summer, and
for authority to deposit income and
excess profits taxes with national
banks, state banks and trust COM
ranies throughout the United States
in the same manner as the proceeds
of the Liberty Loans. | am sure
that the people will respond to the
third Liberty Loan with the same
loyalty and enthusiasm that charac-
terized their support OF the first two
loans. The great events now happen
ing in France must fire the soul OF
every American with new determih
alton to furnish all the dollars and
all the material resource of America
that are needed to put an end to the
,xecrablc atrocities OF German mill
arism. Defeat faces the kaiser.
Let us hasten it by asserting .Ameri
as might with increased vigor ir
with our gallant comrades"