The Broadus independent. [volume] (Broadus, Mont.) 1918-1919, 1919-04-17
ANNOUNCE TERMS
OF VICTORY LOAN
FOUR AND THREE-QUARTER PER
CENT TO BE INTEREST RATE
CERTAIN EXEMPTIONS
FOUR AND A HALF BILLION
Subscription Limited to This Amount
and Surplus Will Be Refused
Loan Last to BE Floated and
Will Mature in Four Years

Will Mature in Four Years
Washington. April 14.-TermS of the
Victory Liberty loan We're announced
yesterday by Secretary Glass. They
are:
Amount. $4,5OO,OOO,OOO oversubscrip.
tions to be rejected.
Interest 4A per cent for partially
tax exempt notes, convertible into 33
per cent notes wholly tax exempt.
Maturity, four years, with the treas
ury reserving the privilege of redeem
ing the notes in three years.
The 3A per cent notes, to be issued
later, also may be converted subsc
quently back into Az per cent notes.
The Az per cent securities are to
be exempt from state and local tax
alton, excepting estate and inheri-
lance taxes, and from normal rates
of federal income taxes the 3A 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 S6OOO,OOO,0 900,
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, although
there will be other issues of govern
ment securities to finance belated war
expenses. These will not be floated
Dy popular campaigns.
None OF the past issues of Liberty
ponds are convertible into Victory loan
notes and there are no specific pro-
visions IN the terms of the Victory is
sue serving directly to maintain mar
ket prices of past issues.
Advance Subscriptions.
In many communities the selling
campaign already has begun actively
without formal acceptance of sub
scriptions, said reports yesterday to
the treasury, although the official
opening date is April q, one week
from today. The drive will continue
three weeks, until May 10.
In fixing the terms of the ISSUE"
said Secretary Glass announcement of
the Victory loan, 1.-THE treasury has
been guided largely by the desire to
devise d security which will not only
prove attractive to the people of the
country in the first instance, but the
terms of which should insure good
market for notes after the campaign
Is over and identical prices for the
two series: and should not affect in
juriously the market for the existing
bonds of the Liberty loans.
1.-THE Victory Liberty loan will be
in the form of Az per cent three and
four-year convertible gold notes of the
from normal federal income taxes.
The notes will be convertible, at the
option of the holder, throughout their
life into 3a per cent three-four year
convertible gold notes of the United
States, exempt from all federal. state
and local taxes, except estate and in.
heritance taxes. In like manner the
BIZ per cent notes will be convertible
into AZ per cent notes.
Will Be Dated May 20.
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 Dec. Is
1919, and thereafter semi-annually or
June and December Is, and at matu
rity. All or any notes may be redeem
ed before maturity at the option OF
the United States on June 10 or Dec
10, 1922. at par and accrued interest.
The interest rate Of 4A per cent i:
the highest borne by any Of the wal
issues. Financial interests have urget
a 5 per cent rate, but Secretary Glas!
indicated recently that he regarded
such a rate as excessive.
Previous Issues.
Terms of the Victory loan may bt
compared with the following terms O
past issues
First Loan, $2,OOO.OOOOOO. 3h pc
cent, tax exempt, maturity 80 years.
Second loan, $2.OOO,0OOOOO offered
e4617,0OO,O0O subscribed, $2,SOS,OO0
900 accepted, 4 per cent, partially ia,
exempt, maturity % years.
Third loan $4,000, 100000 offered, ST.
176,OOO,OOO subscribed and accepted
~ per cent, partially tax exempt, ma
turity 10 years.
Fourth loan $6OOO,OOO,OOO, 5000,
100000 subscribed and accepted, ~
per cent partially tax exempt, witt
special conditional exemptions TO
past issues, maturity 20 years.
Debs Enters Prison.
MOundsville, w. Va, April 14.-Eu
gene ". Debs, many times Socialis