Arizona republican., 1919-04-14
ANNOUNCED TERMS VICTORY JOAN IF
 s4,500,00O,00O
Amount Less Than Expected Interest Rate Highest of All Loans Term Three Four Years-Notes Will Be Convertible Into Gold Securities
[ReDub;ican A. P. tcasea Wirel

[Repubican A, P. .EeaseG Wirel
 WASHINGTON, April 13. = Terms of the Victory loan were announced today by Secretary Glass. They are:
 Amount, $4,5o0 0oo,000, over-sub- scriptions to be rejected. Interest A per cent, for partially tax ex- empt notes, convertible into 3s4 per cent notes. wholly tax exempt
 Maturity, four year, with the treasury reserving the privilege of redeemng the notes in three years The 334 per cent notes to be issued later, also may be converted sub sequently back into "A per cent notes.
 The 434 per cent securities are to be exempt from state and local taxation, excepting estate and in- heritance taxes, and from normal rates of federal income taxes; the 334 per cent securities are exempt from all federal, state and local taxes, except estate and inheritance taxes.
 The size of the loan was much smaller than had been anticipated by most financial observers, who looked for an issue of about S6,- 900 o0o,o00, particularly in view of Secretary Glass past statements that the loan would be five or six billions.
 This will be the last Liberty loan Secretary Glass explained, al though there will be other issues of government securities to finance belated war expenses. These will not be floated by popular cam paiens. None of the past issues of Liberty bonds are convertible into Victory loan notes, and there are no specific provisions in the terms of the Victory issue. serving di rectly to maintain market prices on past tissues.
 Selling Already Begun
 In many communities, the selfins already has begun actively without formal acceptance of sub scriptions, said reports today to tho treasury. although the official open ng date is April q, one week from The drive will continue three weeks, until May 10.
 ''In fixing the terms of the issue, said Secretary Glass announcement of the Victory loan, "the treasury has been guided largely by the desire tc devise d security which will not onIy prove attractive to the people of the country in the first instance, but the terms of which should insure a good market for the notes after the cam paign is over and identical prices fol the two series, and should not affecl the market for the existinl bonds of the Liberty loans.
 This will be the last Liberty loan as the remaining war bill! are presented, further borrowing mus be done, 1 anticipate that the require ments of the government in excess o the amount of taxes and other incom, can, in view of the decreasing seal, of expenditure, be readily financed b, the issue of treasury certificates iron time to time, as heretofore, whicl may be ultimately refunded by th issue of notes or bonds without tn, aid of another great popular campaigI such as has characterized the Libert, loans"
 Terms Are Stated
 The terms of the loan are as follows
 "The Victory-Liberty loan, which will be offered for popular sub scription April 21, will take the form of four and three quarters per cent, three four-year convert ibie gold notes of the United States exempt from state and local taxes, except estate and inheritance taxes and from normal federal income taxes. The notes will be convert ible, at the option of the holder. throughout their life, into three and three-quarters per cent, three four-year convertible gold notes of the United States, exempt from
 all federal, state and local taxes. except estate and inheritance taxes. In like manner, the three and three-quarters per cent notes will be convertible into the four
 and three quarters per cent notes.
 "The amount of the issue will be S4,500, 900 900 which, with the de-
 ferred installments of income and
 profit taxes payable, in respect to
 last years income and profits, dur
 ing the period covered by the ma
 turity dates of treasury certifi-
 cates of indebtedness, now out
 standing, will fully provide for the
 retirement of such certificates. The
 issue will be limited to S4,500 0o0.-
 900. except as it may be necessary
 to increase or decrease the amount
 to facilitate allotment. Overs
 scriptions will be rejected and al lotments made on graduated scale
 similar in it's general plan to that
 adopted in connection with the
 first Liberty loan. Allotment will
 be made in full on subscriptions up to and including S10.000. "The notes of both series will be
 dated and bear interest from May
 20, 1919. and will mature May 20 1923. Interest will be payable De-
 cember 15, and at maturity. All or
 any of the notes may be redeemed before maturity, at the option of the United States June Is or De-
 cember 15, 1922 at par and accrued interest"
 Bear Highest Rate The interest rate of "A per cent the highest borne by any of the w issues. Financial interests have urg five per cent rate, but Secreta Glass indicated recently that he r garded such a rate as excessive, al speculation as to the rate recently h. revolved about Az per cent. The 3 per cent rate of the tax eexmpt note into which the 4%s are convertible, one-quarter per cent higher than u tax exempt first Liberty bonds, whi, mature in 30 years.
 The coming loan is the only los since the first, on which over -subscril tion have not been accepted in who or in part. Compared with the st 993,0I3,000 subscriptions of the four loan. the aggregate of the Victory i sue will be nearly s2,500, 900, 900 less.
 Already s5,S55, 100000 certificates indebtedness have been issued, inclu,