Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1918-06-04
HERE'S PROPER WAY
TOEXCHANGE BONDS
RULES LAID DOWN FOR CON-
VERTlNG OF THE VARl-
Gus ISSUES.
SECRETARY M'ADO0 EXPLAINS
Bonds May Be Converted at Any
Federal Reserve Bank--Detailed
information Given and
Should Be Studied.

Thousands of Washington and Ida
no people who own first and second
Liberty bonds will be interested in
Secretary McAdoos explanation of
the procedure to follow to convert
those bonds to 4 ID per cent bonds.
Three and half per cent bonds,
4 per cent bonds that were converted
from the first issue and second Lib
erty bonds can be converted into
lbs between May and November
8, 1915" says Mr. McAdoo.
1T will not be practicable to make
delivery of IL per cent conversion
bonds before June /, therefore it is
hoped holders desiring to make this
conversion will wait until after July
/. If it is desired, however, to pre-
sent their bonds for conversion be-
fore July 1 an adjustment of interest
will be made.
Bonds may be presented and sur
rendered for conversion at any fed
eral reserve bank or at the treasury
department Registered bonds pre-
sented for conversion must be as
ury for conversion. Such assign
ments, however, need not be wit
messed. On conversion of registered
bonds, registered bonds only will be
delivered, neither change of owner
ship nor delivery of coupon bonds on
conversion of registered bonds be-
ing permitted. Registered bonds,
however, may be delivered upon con-
version of coupon bonds if request
therefor is submitted.
Coupon bonds presented for con-
version must have May Is or June IS
coupons detached and coupons matur-
ing November 10 or December 5 and
all subsequent coupons attached. In
terest on registered bonds will be
paid on May 10 or June Is without
regard to conversion.
The coupon bonds issued upon con-
version will have four interest cou-
pons attached and on and after the
final interest payment date covered
thereby such bonds must be ex-
changed for new bonds with all sub
sequent interest coupons detached.
Bonds issued upon conversion of
8 IL per cent bonds and of per
cent bonds of the first Liberty loan
converted will be dated May and
will carry IA per cent from June
Is. Bonds issued upon conversion of
4 per cent bonds of the second Liber-
ty loan will be dated May and will
carry interest at IA per cent from
May Is.
Won't Change Terms.
THE registered and coupon bonds
issued upon conversions will be is.
sued in the same denominations as
the bonds of the third Liberty loan
and except for the dates of maturity
of principal, the dates for payment OF
interest and the terms of redemption
which will remain the same as for the
original issues, the terms of such
4 IA per cent issued upon conversion
will be identical with the bonds OF
tie third Liberty loan, including tax
exemptions, nonconvertibility, receiv
ability for federal inheritance taxes
They will not carry the circulation
privilege, they will be receivable as
security for public deposits and may
participate in the benefit of the bono
purchase fund
After November no further
rights of conversion will attach OF
accrue to per cent bonds of tn,
first Liberty loan converted or to
: per cent bonds of the second Libert,
loan. But any unconverted 8 IL pc
cent bonds will have "a recurren
right of conversion in the event O
any further bond issue at a highe
rate than IL per cent before thu
termination of the war. All l.
per cent bonds, including bonds is
sued upon conversions, are non-con
vertible''