New-York tribune., 1918-03-25

If this conversion is not effected be-
! fore that date in May the holders of
bonds or interim certificates lose the
privilege. But there is an important
qualification here.
All Issues
Are Convertible
If any subsequent series of bonds
shall be issued by the United States
at a higher rate Of interest than 3h
per cent before the termination of the
war, the holders of any unconverted
bonds of the first Liberty Loan shall
have the privilege Of converting their
holdings at par within six months after
the issue into an equal par amount of
| bonds bearing such higher rate of in
terest.
In other words, the first Liberty Loan
bonds are convertible into any subse-
quent issue. If, however, they are ex-
changed for convertible as they must
be converted into bonds of the
third issue, within six months
after the date of that issue, if
they are to retain their convcrti-
bility privilege throughout the en-
tire war loan series. The second Lib
crty Loan bonds must also be converted
into the next issue if they are to be
convertible throughout the war
The only step that can be taken now
,,.to |,
may be done by presenting them, either
in coupon or registered or interim GER
tiicate form, to the Federal Reserve
Bank Of New York or other Federal
Reserve banks, or at the Treasury De-
partment in Washington. Persons liv-
! ing in New York State, in Fairfield
| County, Conn, or in Bergen, Essex,
Hudson, Sussex, Union, Warren, Pas
sale, Somerset, Iluntcrdon or Middle
sex counties in New Jersey are within
the Second Federal Reserve District
and may apply to the Federal Reserve
Bank of New York, which has quarters
in 120 Broadway, Manhattan. Copies
of the forms which are needed for the
conversion Of interim certificates, or
coupon or registered bonds are sup,
piled at the banks.
The holder of the 31a per cent bond
or certificate who wants to convert it
into per cent bond will have to pay
the difference between 315 per cent and
per cent interest on his principal
from December Is until date of con-
new bond per cent coupon, bearing
interest from December Is to June Is.
This cash payment by the person con-
verting the 4 per cent bond is asked
by the government so that it may. de-
liver the 4 per cent coupon at once and
have the interest adjustment out of the
way. 1t will be lrpted that the man
who converts his first Liberty Loan
bond does not lose any money by pay
ing this sum to the government, for he
gets 1T back when he cashes his cou-
pom in June.
The Treasury Department arranged
the conversion so that persons who
put IN their bonds on November Is or
December Is would get their converti-
Bile As without paying any cash for
interest adjustment After December
1s this arrangement had to be dropped.
Cash Payment
For Exchange
Those who turn their 31as in Mt
the bond issue division of the Fed
eral Reserve Bank of New York for
conversion into 4s as of February I
will pay to the government cents
for every $50 bond, 7 cents for every
500 bond. 33 cents for everv $500
bond, sc cents for every $1,000 bond.
$3.50 for every $1,000 bond, $3.50 for
every $4,000 bond, $3297 for every
$4,000 bond and $65.93 for everv s10O..
600 bond. This tabulation showing tho
payment to be made for converting on
any date from November is until Nav
Is is attached to the Treasury circu-
lar which describes the system of con-
version.
The Federal Reserve Bank of New
York has stated the conditions of con-
version in this way:
Holders of coupon or registered 3ts
per cent bonds surrendered for convtr-
sion must make payment to the WA
Rnv 4.