The Washington times., 1918-03-26

More than half Of the $4,000. 600, 900
to be raised by the third Liberty loan
will be loaned to the allied govern
msnts, according to plans OF secre-
tary OF the Treasury McAdoo, It be-
came known today.
The Secretary will appear before
the House Ways and Means Commit
tee tomorrow to ask authorization to
extend further credits of 81 $780,
000.0 to the allies.
Total allied credits now stand at
$4,000, 0O0,0 900, out OF an original credit
authorization OF $1,000. 100000.
az Per Cent Rate.
A AZ per cent interest rate on the
third Issue Of Liberty bonds was for
mally announced by Secretary Nc.
Adoo, who has fixed the amount to be
put out April @ at $4,000, OO0, 900.
The Secretary announced that the
privilege OF convertIbility was TO be
eliminated from the new issue OF bonds,
but that all holders OF the first and
second loan bonds would be allowed
to convert their holdings into bonds
OF the new issue.
The Secretary's statement In full
is as follows:
"The Secretary OF the Treasury in
q 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
$4,000, 000, 900. the right being reserved
to allot oversubscriptions.
To Have Sinking Fund.
1.-THE Secretary will ask authority
from Congress to issue bonds bearing
interest at the rate OF Az per cent
per annun, acceptable at par and &C
crued interest In payment of United
States inheritance taxes and having
the benefit OF a sinking fund OF 8 per
cent per annum during the period OF
the war and for one year thereafter.
"It Is the belief OF the Secretary that
tho rate now proposed Is sufficient and
that, by restricting unnecessary capital
Issues. and by inducing the people who
subscribe for liberty bonds to save and
to keep them for investment, and by
purchases with the sinking fund from
those who ind themselves compelled to
sell. future increases in the interest
rate may be avoided. in order to put
an end to the expectation OF higher in
terest rates, Il Is proposed that the con-
version privilege shall be eliminated
from the new bonds. but the holders o.
liberty bonds Of all existing issues will
be given an opportunity to convert their
bonds into the new ~ per cent bonds.
Ask Added Authority.
I'm addition to the foregoing princl-
pal items Of the proposed program. Con-
gress will be asked for authority to issue
bonds TO the amount OF $500, 10000 in
addition to those now authorized. In
order to provide for future is
sues; for authority to issue add
tional Treasury certificates OF indebted
ness; for authority to make additional
loans to allied government during the
summer. and for authority to deposit in
come and excess profits taxes with ma
tional banks, State banks. and trust
companies throughout the United
States in the same manner as the pro-
ceeds OF the Liberty loans.
81 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 fire the
soul OF every American with a new de-
termination to furnish all the dollars
and all the material resources OF
America that are needed TO put an end
to the atrocities OF German mill