Norwich bulletin., 1918-03-26
New Liberty Bonds
 Bear ALA Per Cent
sEcY MeADoo ANNOUNCES
 AMOUNT OF $s,ooo,ooo,ooo
ARE NoN-CoNvERTIBLE
Unnecessary to Make Loan Larger Because Expenditures Have Been Much Below Estimates.
 Much Below Estimates-campaisn to Open April S.

to Open April 6.
 Washington, March 25.-The third Liberty loan, to open, to open April S, will be for $3,900,000,000 and all over subscriptions at 1-4 per cent. inter est.
 Bonds of the first loan, bearing 1-2 pen cent. interest, and of the second loan at 4 per cent. may be converted into the new bonds but those of the third loan will not be convertible into any future issue. This announcement was made tonight by Secretary Me Adoo with the comment that the great. events now happening in France must fire the soul of every American with a new determination to furnish all the dollars and all the material re- sources of America that are needed to put an end to the execrable atrocities Of German militarism."
 To Establish Sinking Fund.
 In connection with the loan, the sec retary plans to establish a sinking fund with which to purchase back any of the bonds of the third loan thrown 1 on the market. in order to aid in keep | ing the price up to par. The maturity of the bonds is vet to be determined but it was officially stated that they would be long term, probably between l twenty and thirty years.
 Other features which will be settled as soon as congress passes the neces- sary authorizing legislation are the llength of the campaign and the term. of payment on the bonds.
 Financial Observers Surprised.
 Most financial observers were sur. prised at the comparatively small sig, of the loan, and at the interest rate
 both of which they had expected to b' higher. Reduction of government ex penditures and allied loans below tn,
 former estimates is responsible for tn
 loans size, Secretary McAdoo explain ed. He said the bonds were made non
 convertible to put an end to expecta
 tions of higher interest rates in tn
 future indicating his purpose to main
 tain the 4 1-4 rate for future loans.
 Will Be Drafted Today.
 Legislation will be drafted tomor
 rcw by Chairman Kitchin of the hous ways and means committee to provid
 for ar additional bond authorization c ] $4 ,500, 100000 more than the $3.666 900, 900 sum already authorized but unis
 sued, for the increased interest rat I for continuation of loans to the allie this summer and for issuance of nor than $4 900, 900 900 certificates of in i tebtedness. now authorized. An effof will be made to rush this legislatio through both houses this week. In announcing the loan, Secretar McAdoo made the following state
 ment:
 t Secretary McAdoo's Statement. 5 The secretary of the treasury in : conference with MT. Kitchin, chairma
 of the ways and means committee, tc
 day outlined his plan for the thiI Liberty loan. Actual expenditures : the United States government and the allied governments having bee
 much less than had been indicated 7 the estimates the amount of the ne.
 loan will be only S3,000, ,O0O, 900, u fright being reserved to allot oYersul s scriptions.
 : IA Per Cent.
 'The secretary will ask authori from congress to issue bonds bearir = interest at the rate of IA per cer !, per annum, acceptable at par and al y crued interest in payment of Unit, Il States inheritance taxes and havii ; ; the benefit of a sinking fund of , p v cent. per annum during the period Il the war and for one year thereafte
 Tt is the belief of the secreta
 that the rate now proposed is suf
 cient and that, by restricting unnece < sary capital issues and by inducil
 the people who subscribe for Liber 5 bonds to save them and keep them
 investment, by purchases with |
 sinking fund from those who fl n themselves compelled to sell, furth Ai11a -S avoided. In order to put an end a the expectation of higher interest ra ' it is proposed that conversion pri 'r ileges shall be eliminated from the nt ie bonds, but the holders of Liberty bon 'e of all existing issues will be given 2, opportunity to convert their bonds in ,u the new 14 per cent. bonds. ss Additional Treasury Certificates. y, Tn addition to the foregoing prin, K pal items of the proposed progra
 congress will be asked for authority
 issue bonds to the amount of $4,50
 100000 in addition to those now a N thorized, in order to provide for
 ture issues: for authority to issue a lx Iditional treasury certificates of indel 7 edness, for authority to make tadditic m al loans to the allied governments al ,,, ing the summer, and for authority Ill deposit income and excess profits ta, W ol with national banks, state banks a .le trust companies throughout the Uni oy States in the same manner as the pl ne ceeds of the Libertyf loans.
 Q. o'1 am sure the people will respond All the third Liberty loan with the sa te. loyalty and enthusiasm that charact
 ized their support of the first wo loa
 The great events now happening ,r France must fire the soul of ev' VI American with a new determination 4. furnish all the dollars and the ma rial resource of America that are ne,
 ed to put an end to the execra
 atrocities of German militarism. of feat faces the kaiser. Let us haster to by asserting Americas might with cd creased vigor in concert with our g n- lant comrades"
 rd - ,n pELPHos, OHIO, 4 BAD Is. PLACE FOR PRo.GERMA