The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-03-26
THIRD LIBERTY
LOAN PLANS ARE
MADE PUBLIC BY.
TREASURY HEAD.
Drive Will Be For Three
Billions and All Over
subscriptions
INTEREST RATE
AT Az PER CENT
Evidence of Intent Not to
Pay Higher Rates On
Future Issues
(Bv Associated Press.D

Washington, March 26.-The third
| Liberty Loan, to open April s, will
be for $4,000, 100000 and all over
subscriptions at 4 IA per cent inter-
est.
Bonds Of the first loan. bearing 81
per cent interest, and of the second
loan at per cent, may be converted
into new bonds, but those of the third
loan will not be convertible into any
future issue. This announcement
was made last night by Secretary
MCAdoo 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 resources of America 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 a sink
ing fund to purchase back bonds of
the third loan thrown upon the mar
ket, to aid in keeping them at par
Maturity of the bonds is yet to be
determined. but it was officially
stated that they would be long term
probably between 20 and 80 years.
Other features which remain to be
settled are the length Of the cam
paign and the terms Of payments on
the bonds.
Surprised At Small Sum.
Most financial observers were sur
prised at the comparatively small
size of the loan, and at the interest
rate, both of which they had expect
ed to be higher.& Reduction of gov
eminent expenditures and allied loans
below the former estimate is
responsible for the loans size, SeCre-
tary McAdoo explained. He said the
bonds were made non convertible to
put an end to expectations of higher
interest rates in the future, indicat-
ing his purpose to maintain the 4 IA
rate for future loans.
Legislation will be drafted by
Chairman Kitchin of the house ways
and means committee to provide for
an additional bond authorization of
$4,000, 100000 more than the 1856
100000 sum already authorized bat
unissued, for the continued interest
rate. for continuance of loans to the
allies this summer, and for issuance
of more than the $4,000, 5000
certificates of Indebtedness now
authorized. An effort will be made
to rush this legislation through both
houses this week. so that final plans
may be made for the third Liberty
faces by the first of next week. No
opposition to the legislation is look
ed for in either house.
Will Pass Goal.
Most officials believe that despite
the low goal set by Secretary Nc
Adoo, actual subscriptions will far
exceed 1000. 000,0 900 The first loan
of S2,000,000,000 was oversubscribed
by more than 81 900, 900, 900, but none
of the oversubscription was accept
ed. The second loan was for a mini
mum of $4,000. 100000 and only one
half of the 81 ,617, 0O0. 900 oversubscrip-
ton was taken.
The first bonds mature in 80 years,
but may be redeemed at the call OF
the treasury in Is years. The sec
Ond bonds mature in % years but
may be redeemed in ten years.
A measure to encourage sale Of
Liberty bonds by removing the limit
of loans which national banks may
make to a borrower who wishes to
buy loans, was reported to the house
today by Chairman Glass of the
banking and currency committee.