Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1918-03-30
TERMS OF THIRD
LIBERTY LOAN
McAdoo Gives Out Data
Concerning Loan, Drive
For Which Will Start on
Sixth of April Interest
To Be Az Per Cent.

So "a "a NSAAo'
The third Liberty Loan to open
April will be for $4,000. 600, 900 and
all over subscriptions at 4 4 per cent
interest
Bonds OF the first loan. bearing
3la per cent interest, and Of the
second at 4 per cent may be convert
ed into the new bonds, but these of
the third will not be convertible into
any future issue This announce
ment was made Monday night by
Secretary McAdoo with the comment
that "the great events now happen
ing in France must fire the soul OF
every American with a new deter
mination to furnish all the dollars
and all the material resources that
are needed to put an end to the
execrable atrocities of German mill
tarism"
In connection with the loan, the
secretary plans to establish sinking
| fund with which to purchase back
any bonds of the third loan thrown
upon the market, in order to aid In
keeping the price up to par. The
maturity of the bonds is yet te be
determined, but 1t was officially
stated that they would be long term
probably 20 or 80 years.
Other features which will be set
! tied as soon as congress passes the
necessary authorizing legislation are
the length of the campaign and the
terms of payments on the bonds.
Most financial observers were sur
prised at the comparatively small
size of the loan and at the interest
rate, both of which they expected to
be higher. Reduction of govern
ment expenditures and allied loans
below the former estimate Is reapon-
sible for the loans size, Secretary
McAdoo explained. He said the
bonds were made non-convertable TO
put an end to expectations OF higher
interest rate in the future, and indi-
Gated his purpose TO maintain the
Az rate for future loans.
Legislation Will be drafted Tuesday
| by Chairman Kitchin of the house
ways and means committee to pro-
vide for an additional bond authori-
cation of $4,000, 100000 more than
the SO. .666, 600, goo sum already au-
/ thorized but unissued for the In
] creased interest rate, for continuance
of loans to the allies this summer and
for issuance Of more than the $4,-
100000 in certificates OF indebted
ness now authorized.
An effort will be made to rush this
| legislation through both houses this
week so that finel plans may be made
for the third Liberty loan and the
engraving of the bond faces by the
| first of next week No opposition to
the legislation is looked for in either
house In announcing the loan,
Secretary McAdoo made the follow
ing statement.
"The secretary of the treasury in
conference with Mr.. Kitchin, chair
man of the ways and means commit
tee, Monday outlined his plan for the
third Liberty Loan Actual expen-
ditures of the United States govern
ment and of the allied governments
| having been much less than had been
indicatd by the estimates, the
amount of the next loan will be only
SO, 600, 00O, 900, the right be reserved
to allow for oversubscriptions.
"The Secretary will ask authority
from congress to issue bonds bearing
interest at the rate of 4A per cent
per annuh, acceptable at par and
accrued interest in payment of
United States inheritance taxes and
J having the benefit Of sinking fund
of per cent per annum during the
period of the war and for one year
thereafter
at is the belief of the secretary
that the rate now proposed Is suf-
fcient and that, by restricting un-
necessary capital issues, and by in
ducing the people who subscribe for
Liberty bonds to save and keep them
for investment, and by purchases
with the sinking fund those who find
themselves to sell, future increases
in the interest rate may be avoided
in order to put az end to the expec-
tation of higher interest rates, 1t Is
proposed that the conversion priyi-
lege shall be eliminated from the
new bonds but the holders Of Liberty
Bonds of all existing issues will be
given an opportunity to convert their
bonds into the new Az per cent
bonds.
/