Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-06-17
LIBERTY
LOAN SIX BILLIONS
BANKS ASKED TO TAKE cERTi-
FlcATES OF INDEBTEDNESS
IN HUGE SUM.
TO BORROW MONEY IN
ADVANCE OF BOND SALE
First Issue of Certificates June rs,
to Be Sold in Blocks Each Succeed
Begin Probably in Observation-Disclosures
Wants Prompt Action.

Washington. June 1.-THE govern
ments financial program for the next
four months was disclosed Sunday by
Secretary McAdoo's announcement
that in preparation for the fourth Ii
berty loan, to be floated probably in
October, about s6,0CO, 900, 900 certifi-
Gates of indebtedness will be issued.
They will be offered in blocks of $780,
OOO 900 each every two weeks beginning
June %.
Every national bank and trust COM
pany Is asked to assist the government
by subscribing 5 per cent Of it's gross
resources monthly. The certificates
will bear AZ per cent interest, like
those preceding the third liberty loan,
and will have varying maturity
periods. none exceeding four months.
Two Billion Tax Certificates.
In addition, an undetermined guam
tity-perhaps $4,000, 0oo, Oo0-of tax
certificates Will be issued during the
summer for use in paying taxes year
from now.
The announcement Of this program
Indicated that the fourth liberty Joan
will be for at least $4,000, 900, 900, the
exact amount depending on govern
ment expenditures in the next few
months. The treasury already has
estimated these roughly at about sl2,-
600, 100000 between July 1 and next
Jan. I.
Plan In Effect Last Year.
The sale Of certificates under the
plan in effect during the last year
amounts virtually to borrowing in ad-
vance from banks on projected popular
war loans or tax collections. and
periodically rerunding these short term
obligations in long term liberty bonds
Depository banks make ~ per cent
interest paid by the government and
the per cent collected for deposits.
The future financial program was
announced at this time to enable pans"
to prepare for the government de-
mands.
Letter to the Banks.
In letter to the president OF each
o. tho 1900 national banks and 10000
state institutions Secretary McAdoo
said:
1.-THE expenditures Of the govern
ment, as nearly as can be estimated.
will require the sale Of certificates OF
Indebtedness up to the first OF Novem-
Der. 1918. aggregating approximately
Sc, 900. 900, 900. This would involve the
issue every two weeks of about $780,
100000 of certificates substantially
similar in character to those issued
prior to the third liberty loan, except
that they will have various maturities
not exceeding four months. For the
months of July and August that pro-
gram will be followed as nearly as
possible.
First Issue June %.
THE finst issue Of the certificates
will be dated June %, will mature Oct.
Is, with interest at Az per cent. and
similar issues, it Is expected. will be
made on Tuesday Of every other week
following June %. It is. however, con-
templated that at convenient and
favorable period during the summer
an offering will be made to the general
public directly. and thru the banks.
of an amount yet to be determined,
perhaps $4,000 100000 of certificates OF
suitable maturities for use by tax pay
ers in paying next years taxes. viz,
taxes payable June, 1919 levied under
exiscting pending legislation. To the
extent that certificates of that charac-
ter are sold, substantially an equiva-
lent reduction in the amount OF the
regular fortnightly sale OF certificates
issued in anticipation of the next Lib
erty loan will be effected.
Asks For Prompt Action.
"In giving this timely advice of the
estimated requirements Of the treas
ury to all the banks Of the country,
and, thru them, to those who ex-
pect to make payment OF taxes in 1918.
it is hoped that they will make ar
rangerents promptly of such a char
acter that no delay will be experienced
in the sale and distribution Of treas
ury certificates of both issues.
THE federal reserve banks will ad-
wise all national and state banks In
their respective districts of the amount
of certificates which they are expected
to take from time to time in pursuance
Of this program, which amount can be
figured roughly to equal 2h per cent
Of the gross resources of each bank
and trust company for every period OF
two weeks, or total OF 5 per cent
monthly. The total number Of BIZ
weekly offerings Of certificates to be
made to the banks will somewhat de-
pend upon the amount to be raised
from the public thru the sale OF
tax certificates as above deserved.
Appeal to Patriotism.
1.-THE bankers Of the United States
can render a peculiarly helpful service
to our gallant sons by keeping the
treasury of the United States supplied
with the money required by the gov
eminent to furnish every American hero
with the things he must have to fight
VIGOROUSLY or to die gloriously. I am
sure that no patriotic banker in the
JTpitad Sfotoe will foil ~ do his f,1l