The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1918-03-28
THREE BILLIONS
ARE ASKED FOR
IN THE NEW LIBERTY LOAN TO
BE ISSUED 0F A9FIhsgrf
INTEREST, FOUR AND ONE-HALF
Expenditures of America and Allied
Nations Are Running Below the
Estimates-other Bonds Are To
Be Converted at Per Cent.

Washington, ID. c., March 26-Sec-
rotary McAdoo announced last night
that the amount of the third Liberty
loan would be $S,OO0.OO0,OO0 at AZ per
cent, and that all oversubscription
would be accepted
The new bonds will be nonconver-
tible but bonds of the first and second
Liberty loans may be converted in
the new Al per cent securities.
Something over $4,500,000,000 in
bonds in addition to the 1866, 000, 600
already authorized and unissued is
proposed in new loan legislation pre-
pared for submission to congress, so
that the total amount which may be
issued is SS,166,000,000.
Mr.. McAdoo said expenditures of
the United States and the alice
governments had been much below
estimates, and that consequently it
was not necessary to make the loan
larger than $3.000,000,Q 8g
Congress will be asked for author
ity to make additional loans to the
allies during the coming summer. The
decision to make the new bonds in
convertible the secretary announced
was reached in order to put an end to
the expectation of higher interest
rates.
Secretary McAdoo's statement fol
lows
1.-THE secretary of the treasury in
a conference with Mr.. Kitchin, chair
man of the ways and means commit
tee, today outlined his plan for the
third Liberty loan. Actual expendi-
lures Of the United States govern
ment and of the allied governments
having been much less than had been
indicated by the estimates, the amount
of the next loan will be only $1,000
100000, the right being reserved to
allot over subscriptions.
THE secretary will ask authority
from congress to issue bonds bearing
interest at the rate of Al per cent per
annum. acceptable at par and ac-
crued interest in payment of United
States inheritance taxes, and having
the benefit of a sinking fund of per
cent per, annum during the period of
the war and for one year thereafter.
New Rate Sufficient.
1T is the belief of the secretary
that the rate now proposed is sufIi-
cient and that, by restricting unnec-
essary capital issues, and by induc-
ing the people who subscribe for Lib
erty bonds to save and keep them for
investment, and by purchasing with
the sinking fund from those who find
themselves compelled to sell, future
increases in the interest rate may be
avoided. In order to put an end to
the expectation of higher interest
rates, it is proposed that the CONVEX
sion privilege shall be eliminated
from the new union bonds but the
holders of Liberty bonds of all exist
ing issues will be given an opportun-
ity to convert their bonds into the
new Al per cent bonds.
In addition to the foregoing prin-
cipal terms of the proposed program,
congress will be asked for authority
to issue bonds to the amount of S4,-
500,000,000 in addition to those now
authorized, in ordereto provide for
future issues; for authority to issue
additional treasury certificates of in
debtedness; for authority to make adj
ditional loans to the allied govern
ments during the summer; and for
authority to deposit income and ex-
cess profits taxes with national banks,
state banks and trust companies
throughout the United States in the
same manner as the proceeds of the
Loberty loans.
Thinks People Will Respond.
Il am sure that the people will re-
spond to the third Liberty loan with
the same loyalty and enthusiasm that
characterized their support of the
first two loans. The great events
now happening in France must firs
the soul of every American with
new determination to furnish all the
dollars and all the material resources
in America that are needed to put an
end to the execrable atrocities of Ger
man militarism. Defeat faces the
kaiser. Let us hasten ii. by assert
ing Americas might with increased
vigor in concert with our gallant
comrades"