New Britain herald., 1919-03-13
VICTORY LOAN DRIVE TO BEGIN APRIL q
Shof Term Notes Instead Of
 Long Term Bonds

1 1 announces that the Firth Liberty
 Loan drive, to be known as tne Vc- 1 tory Liberty Loan, will open on Mon- dav Anri1 21. The canvass will last
 for three weeks, It will end satur-
 day, May 1O
 If is understood that this will be the
 last loan campaign undertaken by the ! Government and that Secretary Glass
 has so informed inquirers who have ! seen him in the last few days. The amount of the loan and the rate of 1 interest have not been brought to the ] point where Secretary Glass cares to
 authorize any announcement regard 1 ing them.
 1 The Victory Loan drive will be for 1 the sale by the Governmen of short 1 term notes rather than of long-term bonds. If he so wished Secretary Glass might offer Liberty bonds for sale up to S5,022, 518,000. He has 1 authority for this in the laws under which the last three issues of Liberty 1 bonds were sold. But the rate of in l terest for such Iong-term bonds is l limited by law to 1-4 per cent, and the bonds would be subject to super 1 taxes and profits taxes. so that if Secretary Glass should attempt to f1oa. 1 long-term bonds under these condi- ! tions the drive would probab bly, not l prove great success.
 1 The Bond act of March 3, 1919
 which was passed in the closing days of the Sixty fifth Congress- running the | ] France flibuster, gives Secretary Glass l authority, however. to issue short
 term notes to the extent of not ovef $7,000, 100000, and he may issue
 these on rates of interest and under 1 conditions that would make them faf ] more attractive than 4 1-4 per cent. 1 long-term bonds He has decided that
 this is the wiser way to insure tho l success of the new Notation, and foi
 that reason has decided to make the ] Victory Liberty Loan a campaign fo1 the sale of these short-term notes l maturing in not over five years. Mir | Glass's formal announcem ent of his ] plans for opening the campaign on 1 April 21 follows: The Victory Liberty Loan cam paign ] will open on Monday, April 21, and 1 will close on Saturday, May 10. Under 1 the act of Congress, approved Sept. A, 1917. and am mendments thereto, l the Secretary of the Treasury still has 1 the authority to issue bonds similar ! to those of the Second, Third and 1 Fourth Liberty Loans to the extent of not over s5,022,510 900, but any issue 1 of bonds under authority of this act l is limited to rate of interest to q ! maximum of IA per cent. per an
 mum and would be subject to super taxes and profits taxes except for the 1 right to participate in the exemption of s5,000 principal nount with other i outstanding issues of Liberty bonds 1 and certificates.
 The congress has now passed the 1 Victory Liberty Loan act which was l approved March 8, 1919, under which l the secretafy Of the treasury is au- ] thorized to issue notes of the United l States to the extent of not over ST. 1 00,000,000 upon such terms and
 conditions and at such rate or rates
 of interest as he may prescribe. It is ] provided in this act that these notes
 shall be payable at such time or times l not less than one year nor more than l five years from the date of issue, as { may be prescribed by the secretary After studying financial condi- tions in all parts of the country I
 have determined that the interests of
 the United States will best be served at this time by the issuance of short
 term notes, rather than of longer
 term bonds, which would have to bear
 the limited rate of interest of 4 IA
 per cent.
 l "The Victory Liberty Loan will 1 therefore take the form of notes of ] the United States, maturing in not 1 over five years from the date of ts-
 sue. These notes will be, as were tho
 Liberty Loan bonds, the direct prom
 ise to pay of the United States, will l be issued both in registered and cou- 1 pon form, and the coupon notes will
 be in final form and will have at l tached the interest coupons covering ! the entire life of the notes. am l hopeful that the notes in final en- l graved form will be ready for delivery ! by the opening of the campaign on 1 April 21. .-.-e-,
 "I am led to adopt the plan of is-
 suing short-term notes rather than
 long-term bonds largely because of
 the fact that I believe that a short term issue will maintain price at
 about par after the campaign is con
 cluded far more readily than would a longer term issue.
 'I have not yet reached a conclu-
 sion as to the rate of interest and ex-
 emptions from taxation which these notes will bear because this decision
 must be based on existing conditions
 immediately prior to the opening of , the campaign.
 f Il take this opportunity to repeat [ what | have already stated, that it is
 the intention of the treasury depart f ment to carry on the same kind of in K tcnsive campaign for distribution as y 1 heretofore. It would be Q most un d , 1 fortunate occurrence if the people of l the United States failed to take these