The Washington herald., 1918-06-17
$3.50, 100000 EVERY
TWO WEEKS NEEDED
Certificates Bearing 4H%
Interest to Mature in
Four Months.
PLAN USED SUCCESSFULLY
BEFORE Sd LIBERTY LOAN
Same'Policy Adopted Last Febru-
ary Fulfilled Expectations.
McAdoo Declares.

The banks and trust companies
OF the country will be asked to
finance tho government to the ex-
tent OF S6,ooo.ooo,ooo for the pc
riod which will intervene between
June 25 and the next Liberty loan,
which will probably be fixed for
the first two weeks in October.
Secretary McAdoo, in a circular
letter to the banks and trust COM
panies, outlines the scheme OF
financing on certificates of in
debtcdness which will be called
into play the latter part OF this
month. He says:
Letter to Banks.
The expenditures of the gov
eminent. as nearly as can be esti-
mated. will require the sale of ceE.
tificates of Indebtedness up to No
vember. 1918. aGgregating approx
mately $4,000. 100000. This would
Involve the issue every two weeks
VI StJVsNVtsUUU Ol SuD-
stantially similar in character tC
those issued prior to the Third
Liberty Loan. except that they will
have various maturities not exceed
ing four months. For the months
Of July and August that program
will be followed as nearly as pos
sible.
The first issue of certificates will
hr Dated will
tOber 2J. with interest at Az pei
cent. and sipilar issues. it is ex.
pected, will be made on Tuesday oi
every other week following june
-.
Mr.. McAdoo's letter to bank pres
idents follows:
Following the same plan as thai
announced in my telegram of Feb
~uary 6, 1918. l am writing to inform
you of the program for the ensuing
four months, so far as one can bt
rllde at this time. in order that every
bank and trust company in the United
States may have adequate notice anC
be able to prepare itself to meet patri
otiCally the requirements OF the gov
HTnElcnt. am sending a similar let
ter to every bank and trust company
N the United States.
This policy. adopted in February
last. was successful and, having full
filled expectations in the sale of Ger.
tificates of Indebtedness prior to Tho
Third Liberty Loan, demonstrated
that the government could rely upor
the hearty support and cooperation oi
the banks when given opportunity il
advance to make necessary prepard
tions.
s.-rho a~zan9;,,,raz - a.. ....
ment, as nearly as can be estimated
will require the sale Of certificate.
Of Indebtedness up to November l
1918. asgregating approximately S.
DC.tO0.OOG. This would involve the is
sue every two weeks of about $780,
10000 Of certificates substantial!
similar in character to those ISSUED
prior to the Third Liberty Loan. ex
ccpt that they will have various ma
TURTLES not exceeding four months
For the months of July and Angus
that program will be followed c!
nearly as possible.
Interest 4 1-2 Per Cent.
The first issue of the certificate!
will be dated June 5; will matur,
October IS, with interest at AZ pei
cent. and similar issues, it is ex
pected, will be made on Tuesday o.
every other week following Jun,
80 1t is, however. contemplated
that at 4 convenient and favorabl,
period during the summer an offer.
ing will be made to the genera
public directly. and through tn,
banks, of an amount yet to be deter.
mined, perhaps $4,000. .00O, 900 of Ger.
tifcates of suitable maturities fol
use by taxpayers in paying mex
years taxes, namely, taxes payabl,
June, 1919. levied under existing
and pending legislation. To the ex.
tent that certificates OF that charac.
ter are sold, substantially an equiv.
alent reduction in the amount OF tn.
regular fortnightly sale of certifi.
Gates issued in anticipation of tn,
next liberty loan will be affected.
In giving this timely advice ot
the estimated requirements of thu
Treasury to all the banks of tn,
country. and, through them. t.
those who expect to make paymen
Of taxes in 1919. it is hoped thai
they will make ARRANGEMENT!
promptly of such a character that
no delays will be experienced in tn,
sale and distribution of Treasury
certificates OF both issues.
The federal reserve banks will ad.
rise all national and state banks in
heir respective districts of the
Imount Of certificates which they are
expected to take from time to time
n pursuance of this program. which
mount can be figured roughly tc
sdual 1-2 per cent OF the gross re.
iources OF each bank and uust com.
any for each period Of two weeks,
CONTINUED on FACE TWO.