Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-17
WAR DEMANDS WILL TAKE
s6,O00,000,000 BY FALL
Secretary McAdoo Calls Upon Ranks
and Trust Companies to Alb
Sorb That Amount.
LINE ON NEXT LIBERTY LOAN
New Plan Announced to Facilitate
Payment of War TaXcs-WilI Sell
certificates OF Indebtedness Be-
fore November.

Especial to The Times. Dispatch1
WASHINGTON. June I6.-Thc bauts
and trust companies of tho iin,.d
States must loan the government :.
total Of $4,000. 600 900 between limo ~,
and November /. 1918. it the United
states Treasury Is to have enough
cash in hanG during The period 10 nee,
the demands Of war
This was indicated to-day i'm a III
ter which Secretary McAdoo addressed!
to the American bank and trust com :
panies calling unon them to absorb
certificates of Indebtedness to tho
amount Of S7j0.c00,OcO every Two
weeks between June - and Novc:!I
Dor l. These certificates are to bear
interest At the rate of 4 - per cent
and are TO have various maturitics not
exceeding four months.
The amount OF these loans IL. .
measure. indicates the size Of The nov;
Liberty bond issue. an issue which
tho President IN his last address to
Congress warned the country would
he larger than any previous Offering
10 the country. In his letter TO the
bankers. the Secretary states that the
sale OF certificates is in anticipation
Of the next Liberty loan"
In this connection, Mr.. McAdoo an
Hounccs new plan 10 facilitate TIC
payment of war taxes. a plan that r,ay
be regarded ar substitute for tn.
partial payment scheme which many
members of tho House and Senate arc
advocating. lie says that at some IA
vorable period during the GUNNER the
Treasury Dcpa r,mcnt will offer 10 tho
public directly OF through tho banks
an issue OF approNiu 'cly $1,000. 900 900
in Treasury c"rtsN Thcs. GER
tifcatcS. IL il "Ar 1T will mature
~ suitable times use by taHpay-
crs in paving ncNi ri,'s ;axcs:' that
is. taxes now l.leI and payable in
June, 1914 or ta.rs /, be levied by
pending legislation.
MIR. McAdoos letter to ;hc banks is
as follows:
Following the same pan a ,:,at
announced in my telegram Of Fcbru-
AIRY s. 1918. am writing TO inform
YOU Of the program for tho ensuing
four months. SO far as one can tc
made At this time. In order that every
bark and trust company IL the Cr'cd
States may have adequate notice and
he able 10 prepare itself 10 meet pre-
iically the requirements OF the gov
'TnlNc0I. am s'NIlVG sllnlliT l'tt-
ter TO every bank and trust company
in the United States
Gan RELY UPON TIL;
HEARTY SUPPORT OF RANKS
This policy. adopted in February
last VAS successful. and, having fui-
filed expectations in the sale IF Ger
;incates of Indebtedness prior 10 the
third Liberty loan. demonstrated that
the government could rely upon the
hearty support and cooperation of TIE
banks when given opportunity in id
vance 10 make necessary preparations.
The expenditures OF tho govern
ment, as nearly AS can be estimated.
will require the salc OF certificates Of
indebtedness uo TO the first Of Nov"in-
her, 1als asGrcGatinE approximately
5000. coo coo. This would involve thu
issue every two weeks OF about S7:o,-
100000 of certificates substantially sim
liar in character TO those issued prior
TO the third Liberty loan. except that
they will have various maturitics NOT
exceeding four months. For the months
Of JUL and August that program VIII
he followed as nearly az possible.
The FIRST issue OF the certificates
Will be dated June %: will mature
October %. with interest at AZ per
cent. and similar issues. il is expected,
will DC made on Tuesday Of every other
week following June %. II IS. how
ever, contemplated that at conven-
lent and favorable period during the
summer an Offering will be made to
the general public directly. and
through the banks OF an amount yet
Il. be determined. perhaps $4,000, 600.
coo of certificates Of suitable matur-
tiles for use by taxpayers in paying
next years taxes. viz; taxes payable
June, 1919. levied under existing and
PENDING legislation. To the extent
that certificates OF that character are
sold, substantially an equivalent re-
duction in tho amount of the regular
for,nightly sale OF certificates issued
in anticipation Of the next Liberty
loan will be effected
I'm giving this timely advice of the
estimated requirements OF the Treas
ury TO all the banks of the country,
and. through them, to those who expect
10 make payment of taxes in 1919. il is
hoped that they will make arrange
ments promptly of such character
that no delay will be experienced in
the sale and distribution OF Treasury
certificates of both issues.
The Federal reserve banks will ad-
rise all national and State banks in
their respective districts OF the amount
OF certificates which they are expected
10 take from time to time in pursuance
CT this program, which amount can be
figured roughly TO equal 2ia per cent
of the gross resources OF each bank
and trust company for every period OF
two weeks. or a total of per cent
monthly. Ii will be remembered that
in the February program the amount
which the banks were asked to take
was substantially equal to per cent
of their gross resources for each period
of two weeks, or a total of per cent
monthly. The total number of BIZ
weekly offerings of certificates TO be
madc to the banks will somewhat de-
pend upon the amount to be raised
from the public through the sale Of
tax certificates. as above described.
Already more than 100000 OF our
splendid American boys are on the soil
of France. and many of them arc act
ually fighting among the heroic de-
tenders OF the western front. Fresh
contingents Of American troops are
constantly going forward TO France