Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-02
LOOK FOR CONVERSION
RIGHTS ON ALL BONDS


ts:i'siai announcement of the third
1ibe ny bond issue as an actually, with
the campaign starting April s. carried
with it no statement as to whether the
loan would be covered by long or
short term bond issue. nor the amount,
other than that IL would cover the bal
ance of the loan authorized by Congress
in the last session and that Sirther
loan would be asked of Congress
Bankers seem to assume that the
third loan will be for shorter period
than five years. some even predicting
a three-year loan. and considerable
non -convertibility of the second liberty
As. in the event of these predictions
as to the term of the loan being verified.
1t is a fact that Treasury circular.
90. covering the second liberty loan.
and circular 90. covering the con-
version of the first 3 rs into the second
loan As. both contain practically identi
cal provisions relating to conversion
rights. as not pertaining to United
states Treasury certificates of indebt-
edness, war savings certificates and
other obligations. maturing not more
than five years from the issue of such
obligations"
On the face of the 3 rs. the first lib
erty bond issue. is provision against
conversion into short-term maturities.
The converted As are exactly the same
lin form and terms as shall be prescribed
by or pursuant to law with respect to
other bonds of subsequent series, not only
as TO interest rate, but as to convertiblity
or non-convertibility and to exemption
from taxation. if any
At the same time bankers do not be-
lieve that II is the intention of the Treas
ury Department to cause any uneasiness
in this matter or to hazard the success of
The third loan by not assuming the full
Obligations, implied, IL not actually stated.
in the campaign when the bonds were
. in, no
campo ign
Bankers generally are unanimous in
the belief that the rights of conversion,
no matter what the issue, will be MAIN
tanned to all holders of liberty bonds,
original 3 as, whose right would expire
by limitation May Is, unless higher
rate of bonds are issued: to the holders
of the converted is and of the second
As as well.
They do not believe that Congress
would fail in this provision regarding
new authorization or that the full pro-
vision will not be made on the balance
of the authorization.
On the Local Stock Exchange.
In all eighty shares of Commercial
National Bank stock changed hands on
today's session of the Washington Stock
Exchange. The first sale was at POS.
the next 2o4. then 2o3 u. then 203 and
the final twenty shares at 2o21s The
Offering was unexpectedly large, but
was well taken on the declining scale,
with 200 the best bid at the close and
no stock offered.
Washington Gas was lit>le firmer
sale being reported at IS. prSbably on
the theory that an advance in rates is
probability of the near future.
Capital Traction quiet but firm. Rail-
way preferred sold to the extent of
90 shares at IS.
The only bond sale of the day was
of Washington Gas SIS, which sold at
s71s.
Sales for the Week.
with one or two featureleSs session.
the record of the stock exchange for
the past week. ESQ shares of stock sold
and $4,000 bonds. would seem to indf-
cate little more interest in local Sc
curities