Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-04-05
SIGNS
THIRD LOAN BILL
Campaign for Bonds Will Open
Tomorrow and Continue
-Four Weeks.
INTEREST AT q Ia PER CENT
Five Per Cent Payment Re-
quired at Time Subscrip-
tion Is Made.
INTEREST AT Ala PER CENT
rBy Associated prcss ,


lativc foundation for the third Liberty
loan was laid tonight when Congress
completed and President Wilson signed
me nin authorizing issuance OF add.-
tional bonds at IA per cent
Earlier in tho day the Treasure
announced that the bonds wou,d
mature in ten years, that tho loan
campaign. opening Saturday. will con-
;lnuc four weeks. un;u Ma an,
that after the initial payment of >
per cent on subscription. ;nstaI,,ro,,.
Of 20, 30 and 30 per cent would be due
respectively. on May IS. July Is and
August 10. The amount is $4,000. .ooo.
900 and observation-disclosures, and tho
only remaining details to be determined
by the Treasury arc the a-ranrcmo,,c
:oT conversion OF bonds OF the first
and second loans into third Liberty
bonds
Within an hour after President Will
son signed the bond bill. the first
completed bond OF the third Liberty
loan ca-aa from the press OF the Bu-
.eau of Engraving and Printing. II
was $50 "haby bond" and was care
fully laid aside by James L. Wilneth,
director OF the bureau. for special dis
position. 10 be determined later. Forty
thousand more bonds will be ready
In the morning. 100000 by Saturday
ard thereafter they Will be turned cut
~ the rate OF 900 a day 10 supply
demands for cash sales and immediate
delivery.
Final disposition OF tho bond bill
was hastened In the House late to-
day by agreement TO minor Senate
amendments. Wide difference OF opin-
ion between members prevented in
c!us!on Of a provision cXempting ma
t!ona! and state banks holdings Of
Liberty bonds from consideration in
determining State and local taxation
OF ban nks. Chairman Kitchin, OF the
Ways and Means Committee, intimated
the subject would be placed before
Congress again in Il separate bill.
The bill gives the Secretary OF the
Treasury authority TO issue s4.5o0.-
100000 bonds IN addition to the So
eG6.0o0,o0o already authorized under
former legislation. raises the interest
rate from to Ia per cent. author
lies issuance OF as much as 5000
100000 certificates OF Indebtedness at
one time and extends to the Treasury
the power TO loan sl5oo. .ooe 900 more
70 the allies from time TO time
Payment in full may be made with
the application on OF before May T." the
Treasury announced. but bonds Will
not be delivered before May Q on any
subscription for An amount exceeding
$4,000. Full payment may be COM
plctcd upon subscriptions for any
amount on May .. or any subsequent
installnent date.
Payment OF any installmcnt includ-
ii!e the first insialmcnt OF per cent.
or payment in full. may bc made in
Treasury certificates OF Indebtedness
except those maturing April % and
June 25. Qualified dcpositary banks
and trust companies may make paymen:
by credit upon the subscriptions OF
themselves and their customers. but
only 10 the extent that they cannot
make payment in Treasury certificates
OF Indebtedness.
Third Liberty loan bonds. which
have been owned by person for six
months prior TO tine date OF his death
will be acceptable al par and accrued
interest in payment Of United States
inheritance taxes upon his estate.
This applies also 10 il-i per cent bonds
issued upon conversion"
BILL. PROVIDES FOR RETIREMENT
Of ONE-TWENTiErII THIS YEAR
The Treasury also explained that tho
Liberty loan bill provides for the pur-
chase of one-twcuticth or the total is
sue of tho third loan this year. and
that this provision also applies TO
bonds Of the second loan and converted
bords of the first loan.
Instead OF requiring > per cent cash
payment with the subscription. as In
the second loan, > per cent viii be
asked for the third loans Twenty per
cent then Will be due May IS: 81 per
cent July IS. and 80 per cent August 10.
The Treasury expects many subscrib-
crs 20 pay in full on purchase and
these early payments may be sufficient
to redeem the 5000. 100000 OF certificates
OF indebtedness failing due before MAY
=. Otherwise il may be necessary tn
-cfund the certificates with other short
time lots. officials also believe tho
May IS payment actually will bc much
greater than the - per cent required.
The inStailmcnt payment dates have
been arranged so that none will come
in June when the drain on tho coun-
try'.; financial resources will be great
on account Ct income and cxccss profits
taxes due juno 10.