Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1919-04-18
Secretary Glass Announces The
Victory Loan Rate.

The Victory Liberty Loan will be for
S4,500,000 and will bear interest at the
rate Of a "a per cent. per annum. Secre-
tary Carter Glass announced last Monday.
This is the highest interest rate that has
been fixed for any of the Liberty Loan
issues. Over-subscriptions will be rejected
and allotments made on graduated scale
similar to that adopted in connection with
the first Liberty Loan.
The notes will be partially tax exempt
and will be convertible into ga per cent
gold notes. wholly exempt from taxes.
Similarly the "a per cent notes will
be convertible into the "a notes.
In making the announcement Secretary
Glass reiterated his previous assurance
that this will be the last Liberty Loan, and
he expressed the belief that with the de-
creasine scale Of Government expendi-
lures. future borrowings can be financed
readily through the issue Of Treasury GER
tificates and without the aid OF another
popular campaign. The announcement
follows:
THE Victory Liberty Loan. which will
be offered for popular subscription on April
Fl, will take the form Of 4 "a per cent
three and four year convertible gold notes
Of the United States. exempt from State
and local taxes. except estate and inheri-
lance taxes, and from normal Federal in
come taxes. The notes will be convertible,
at the option Of the holder. throughout
their life into "a per cent three and
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
3 "a per cent. notes will be convertible
into "a per cent. notes.
1.-THE amount of the issue will be $4,-
500.000.000, which, with the deferred
installments Of income and profits taxes
payable in respect to last years income
and profits. during the period covered by
the maturity dates Of Treasury certificates
Of Indebtedness now outstanding. will pro-
vide fully for the retirement of such GER
tificates. The issue will be limited to
S4.5O0.0O0.00O. except as it may be
necessary to increase or, decrease the
amount to facilitate allotment. Over
subscriptions will be rejected and allot-
ments made on a graduated scale similar
in its general plan to that adopted in con-
nection with the First Liberty Loan. AL
lotments will be made in full on subscrip-
tons up to and including $4,000.
The notes of both series will be dated
and bear interest from May 20. 1919, and
will mature on May 20. 1923. Interest
will be payable on December is, 1919. and
thereafter semi-annually on June is and
December IS, and at maturity All or any
of the notes may be redeemed before matu-
rity at the option of the United States on
June is or December IS, 1922, at par and
accrued interest.
in fixing the terms Of the issue, the
Treasury has been guided largely by the
desire to devise a security which not only
will prove attractive to the people Of the
country in the first instance but the terms
Of which should insure good market for
the notes after the campaign is over and
identical prices for the two series. and
should not affect injuriously the market for
the existing bonds Of the Liberty Loans.
This will be the last Liberty Loan. Al
though as the remaining war bills are
presented further borrowing must be done.
| anticipate that the requirements Of the
Government. in excess Of the amount Of
taxes and other income. in view Of the
decreasing scale Of expenditure, readily
can be financed by the issue Of Treasury
certificates from time to time as hereto
fore. which may be ultimately refunded
by the issue Of notes or bonds without the
aid of another great popular campaign
such as has characterized the Liberty
Loans.
Il am sure that the people of America
will subscribe to this Victory Loan in the
same spirit Of patriotism which they have
shown in the past. to the end that the notes
may be as widely distributed as possible
and that our banking institutions may be
left free to supply the credit necessary fol
the purpose Of industry and commerce
and the full employment Of labor. Let the
world see that the patriots of America
out of their boundless resources and witt
the same enthusiasm and devotion t.
country with which they prosecuted thu
war to victorious conclusion. are deter
mined to finish the job