Bisbee daily review., 1918-03-26
M N'ADOOANNOUNCES NEXT LIBERTY LOAN .FOR$3,OO0,OOO,OOO
Total Sum That Can Be Is- sued, and Third Series to Bear Interest at Higher Rate
CBy Review Leased wirel


 WASHINGTON, March 25.-Sscre-
 ary MCAdoo announced tonight the 1 mount of liberty loan would be three
 dillon dollars, at fcur and one quar-
 er per cent and that all over sub scripticns would be accepted. The new bonds will be nOn-ccnvertible but -onds of the firt and second liberty locns, may be converted into the now 1 -A per cent securities.
 | Authority to issue S4,5O0,000,G00 in bonds in addition to the S3.666,66 coco | ready authorized and unissued Is ir-p1 sed in new loan legislation prc- | ared for submission to congress so | hat the total amount which may be ssued is $S,166. 100000.
 Mir. McAdoo said expenditures of
 he United States and the allied gov ,rnments had been much below estim- ties and that consequently it was ne 1 essary to make the loan larger than ! hree billion dollars.
 Congress will be asked for author V to make additional loans to the al- ies during the coming summer. The decision to make the new bonds in convertible. the secretary announced, was reached in order to put an end to the expectation of higher inetrest rate
 Secretary McAdoo issued this state nent:
 "The secretary of the treasury in conference with MT Kitchin, chair man of the ways and means commit tee, today outlined his plan for the hird liberty lean. Actual eXpendi- lures of the United States govern ment and of the allied governments aving been much less than had been indicated by the estimates. the amoun9 of the next loan will be s3,0O6, ,0G0, 900 the right being reserved to allot over subscriptions.
 The secretary will ask authority from congress to issue bonds bearing interest at the rate of A per cent ger. annum, acceptable at par and ac- crued interest in payment of United States inheritance taxes and having the benefit of a sinking fund of five per cent per annum during the period
 f the war and for one year there after
 Tt is the belief of the secretary that he 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 by purchases with the sinking fund from those who find themselves comrelled to sell future increases in the interest rate may be avoided. In 3rder to put an end to the expectation of a higher interest rate it is propos- d ttat the conversion privilege shall be eliminated from the new bonds but the holders of liberty bonds of all ex- sting issues will be given an oppOr- unity to convert their bonds into the new Al per cent bonds. In addition to the foregoing principal items of he proroSad program congress will be asked for authority to issue bonds a the amount of $4,5e0, 100000 in ad- dition to those now authorized, in or der to provide for future issues; for authority to issue additional treasury certificates of indebtedness; for auth ority to make additional loans to the allied governments during the sum- mer; and for authority to deposit in- come an1 excess profits taxes with national banks, state banks and trust Companias throughout the United States in the same manner as the roceeis of the liberty leans.
 q am sure that the people will re- pond 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 5ening in France must fire the souls 1f every American with new deter imitation to furnish all the dollars and all the material resources of America that are needed to put an end to the execrable atrocities of German mill tarism. Defeat faces the kaiser. Let us hasten il by asserting Americas might with renewed vigOr in concert with our gallant comrades"