The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-03-26
Secretary McAdoo Fixes Inter
est Rate On New Issue at
4 IA Per Cent
NATIONS AT WAR
SPENDING LESS
THAN ANTICIPATED
Conversion Privilege Not In
cluded in New Bonds-Lat-
est Allotment of Treasury
Certificates Oversubscribed

Washington. March 2s-The third
liberty loan will total $4,000. 900. 900
and pay ia psr cent. Secretary
cf the Treasury McAdoo tonight made
rhis announceme after a conference
with Chairman Claude Kitchen. Of
the house ways and means commit
Tee.
His decision came as a distinct
surprise, the amount and the interest
rate both falling below expectations
IT had been stated the loan would
total $4,000. 100000 at least, but Mr
McAdoo pointed out war expenditure
are falling below estimates and the
money market Is in such condition
that II will not be necessary 10 pay
Ia per cent as had been expected.
" The loan, Secretary McADoo de-
clared, cannot hut succeed He sald
Il am sure the people will respond
to the third liberty loan with the
same loyalty and enthusiasm that
characterized their support OF the
fret two leans. The great events
now happening IN France must fire
the soul of every American with
new determination 20 furnish al the
dollars ana all the material resources
If America that arc needed 10 pur
an end to the execrHble atrocities os
German ulttarism.
Defeat faces the kaiser Let us
hasten IL ny asserting America q
might Viih increased virur ~ wcffS
cert with our gallant comrades"
Secretary McAdoo must have tho
authority OF congress 10 increase tho
iaterest rate from 4 IA per cent
lie viii ask this authority in the form
OF a bill To be introduced in the house
tomorrow Nv Chairman Kitchen At
the same time he IS asking permits
h sion on this score, he viii seek au-
thorixation for future bond issues up
~ $4,000, 60e 600.
II win lie necessary to ruch the bill
il it becomes law before April g. the
date set fer opening the third liberty
loan campaign.
Chairman Kitchen. upon agreeing
"a introduce the bin tomorrow, also
promised to call Il up for considera-
ZION in the house on Wednesday
Terms Are Announced.
Secretary McAdoo authorized the
following statement describing the
terms OF the loan;
/ Actual expenditures of the United
States government and of the allied
governments having been much less
than had been indicated by the es-
y Inmates. the amount Of he next loan
will be only $4,000, 600. 900. the right
being reserved to allot oNersubscrtp-
lions The secretary will ask author
| tty OF congress to issue bonds bearing
.,terest at the rate OF IA per cent
per anrum acceptable AT par ard
accrued interest in payment OF Uniterl
states Inheritance taxes and havin s
the benefit OF sinking fund OF pei
cent per annum during the period Of
he war and for one year thereafter
1T is the belief OF the secretar,
that the rate now proposed Is suf
dcient and by restricting unnecessary
| capital Issues and by inducing tht
| people who subscribe for liberty
loans TO save and keep them for in
vestment. and by purchase from tn
sinking fund from those who finC
themselves compelled to sell. futur'
increases In the interest rate may b.
avoided.
I'm order TO put an END to the ex
| pectatfon of higher interest rates II I
| proposed that the conversion privileg
| shall be eliminated from the ney
| bonds, but the holders OF liberty bond
Of all existing issues will be given a
| opportunity TO convert their bonds int
he new four and ons quarter bonds.
Congress will be asked for author
lty n issue bonds to the amount o
s4.soo, 600. 600 in addition to- those rov
authorized, IN order TO provide for I'll
| lure issues; for authority to issue ad
ditpnal treasury certificates OF In
debtedness; for authority to make nd
| dftional loans to the allied govern
! ments during the summer and for au
/ thority TO deposit income and exces
IS PROFITS taxes with national bank
state banks and trust companie
throughout the United States in tn
same manner as the proceeds of tn
liberty loans,~
Richmond Below Duets.
AZ the same time he announced III
terms OF the third liberty loan. ne sal
the latest issue of treasury certif
| Gates had been over subscribed b
more than $4,000, 900 The Philade
phia, Richmond, Atlanta. st. Louis an
| u San Francisco federal reserve district
r. failed to sell their quota, but Bostol
New York. Cleveland. Chicago. Mir
neapolts and Kansas City heavil
oyersubscribed. Figures on the $500
100000 issue follows:
Tentative Amount
Quota. Allotted.
New York s17s.ooo,ooo s1ss,ooo.5t
Boston $500. 100000 5s,690.0t
Philadelphia 40.ooo.009 $4,000. Oh