The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-03-19
THE VICTORY LOAN.

The victory loan, winch Will De OIL
fered next month, is expected to be the
last of the big war loans. and will be
in the form of United States notes, run
ming not less than one year nor more
than five years, the terms of which
In other respects will be largely fixed
by the secretary of the treasury in his
discretion. The total amount of notes
Authorized is s7,0O0,000,0OO. The
minimum amount is placed at $5,-
900, 100000. The time of offerings.
amount in any series, maturity with
in the above limitations, and interest
rates, will be determined by the sec
rotary, but any series may be redeem
able before maturity, at the option of
the United States, in whole or in part.
upon not more than one year or less
than four months notice.
The feature of the offering will be
the varietJ of choice afforded the pub
lie as regards exemption from taxa
ton. There will be an opportunity
for the individual of large income to
buy notes similar in this respect to
the first liberty bonds, which were
completely exempt except as to inher-
itance or death taxes, and there will
be opportunity for the individual who
does not value exemption from the
surtaxes or excess profits taxes to
buy notes which are subject to these
but exempt from the normal INCOME
tax. Interest rates will vary with
these exemptions. and the subscriber
will pay his money and take his
choice. Secretary Glass argues that
with the great amount of municipal
securities and federal land bank
bonds, all exempt from federal taxa
, ton, now being offered, the federal
government itself should offer some
thing to the class of buyers who seek
tax-exempt securities.
The four classes defined in the law
| are briefly described as follows
| Exempt, both as to principal and
| interest. from all taxation, except in
heritance or estate taxes, now or here
after imposed by the United States,
state or city.
Exempt, except estate or inheri-
lance taxes. and graduated income
tknown as surtaxes, and excess and war
profits.
! Exempt from inheritance taxes
graduated income taxes, excess prof
it's and war profits, when holdings dc
not exceed 100000.
Exempt both as to principal and
interest from all the above taxes, ex-
cept inheritance taxes and all incomes
excess profits, and war profits, upor
the incomes or profits of individuals
partnerships or corporations.
The law also extends the policy
adopted in the act authorizing the
. h.
exemptions UPON bonds of the earlier
loans, with limits as follows:
Bonds absolutely tax free in add
ton to the 312 per cent first liberty
bonds, $4,000.
Fourth liberty bonds, tax free unit
two years after the termination of the
war, 100000.
First liberty bonds. converted; sec
ond liberty bonds, converted or un
converted; and third liberty bonds. I'm
til two years after the termination o
the present war, $4,000.
First liberty bonds, converted; sec
ond liberty bonds, converted or un
converted; third and fourth libert.
! bonds, until five years after the ter
mination of the present war, $4,000
First liberty bonds, converted; sec
ond liberty bonds, converted or I'm
converted; third and fourth libert
bonds. so long as the owner hold
5000 Ol uOl6S OElSIIldlly SupSCi q
for by him, $4,000.
t The law also reopens the CONVEX
' sion privilege on the first and secon
= liberty As into first and second lib
erty converted Az S upon terms to
hereafter prescribed by the secretar
: of the treasury.
r These provisions offer an induce
l
= subscribe for the notes, and are ca
e culated to improve the market pos
e ton of the old issues.
S cumulative sinking fund of p
S per cent is created to become opera
0 tive July 1, 1920, at which time, al
= proximately, the present per Gel
e sinking fund purchases will expire.