The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-04-05
THREE BILLION
Sd LIBERTY LOAN
BONDS WILL BE NoN-coNvERT-
IBLE BUT WILL BEAR 4N
PER CENT INTEREST.
WAR EXPENSES ARE LOWER
Allied and American War Cost Not up
to Expectations and This Accounts
for smaIIness of Loan.-More
Issues Coming.
WAR EXPENSES ARE LOWER

Washington, March %. = Secretary
McAdoo has announced that the
amount of the third Liberty loan
will be three billion dollars at Az
per cent, and that all oversubscrip-
tons will be accepted.
The new bonds will be non-convert-
ible. but bonds of the first and second
Liberty loans may be converted into
the new Az per cent securities.
Authority to issue S4,500,000,000 in
bonds in addition to the S3666, 900
already authorized and unissued is
postponed in new loan legislation pre-
pared for submission to congress so
that the total amount which may be
issued is $S,166,000,000.
Mr.. McAdoo said expenditures of
the United States and the allied gov
ernments had been much below esti-
mates, and that consequently it was
not necessary to make the loan larger
than S3.000,000,000.
McAdoo Issues Statement.
Secretary McAdoo issued this state
ment on the Liberty loan campaign:
THE secretary of the treasury in
a. conference with Mr. Kitchin, chair
man of the ways and means commit
tee. outlined his plans for the third
Liberty loan. Actual expenditures of
the United States government and of
the allied governments having been
much less than hat. been indicated
jy the estimates, the amount, of the
next loan will be only S3.000,000,000,
the right being reserved TO allot over
1.-THE secretary will ask authority |
rom congress to issue bonds bearing |
interest at the rate of AZ per cent per |
lnnum, acceptable at par and accrued |
interest in payment of United States i
Inheritance taxes and having the ben
fit of a sinking fund of per cent |
Ter annum during the period of the
var and for one year thereafter.
To Absorb Forced Sales.
at is the belief of the secretary |
hat the rate now proposed is suffi-
lent and that, by restricting unnec-
ssary capital issues, and by inducing
ne people who subscribe for Liberty
onds to save and keep them for in
and by purchases with the
mixing fund from those who find
lemselves compelled to sell, future
lcreases in the interest rate may be
voided. In order to put an Apd to
lie expectation of higher interest
ties it is proposed that the CONVEX
on privilege be eliminated from the
ew bonds but the holders of Liberty
,nds of all existing issues will be
ven an opportunity to convert their
,nds into the new Az per cent bonds.
81 am sure that the people will re-
,ond to the third LibGtty loan with
e same loyalty and enthusiasm that
aracterized their support of the first |
70 loans. The great events now hap 8
ming in France must fire the soul of b
cry American with a new determin- @
ion to furnish all the dollars and all c
e material resources of America that f
e needed to put an end to the exc
able atrocities of German militar-
d. Defeat faces the kaiser. Let us h
stem it by asserting Americas might V
tn increased vigor in concert with E
t gallant comrades" t,
A measure to encourage sale of Lib 81
" bonds by removing the limit of
ms which national banks may make
a borrower who wishes to buy bonds, D
IS reported to the house by Chair d
IN Glass of the banking and currency II
nnittee. n