Arizona republican., 1919-03-13
FIVE BILLION
 VICTORY JOAN
 OPENS APRIL q
Short Term Notes Instead of Bonds-Five Year Ma turity - May Bear Over A. Per Cent-Will Be Di- rect Promise to Pay By United States

WASHINGTON. March F. The NictOry-Liberty loan campaign will open Monday, April q, and close three weeks ater-Saturday, May 10.
 Secretary Glass announced the dates tonight, together with the fact that short term notes. maturing in not over five years, would be issued in stead Of longer term bonds. The amount Of notes to be offered was not disclosed, but 1t has been generally understood that the loan would be for a minimum of s5,000,000,0O0, with the treasury reserving the right to accept all oversubscriptions.
 Mir. Glass said the interest rate on the notes and the amounts to be eX- Cmpted from taxation would not be determined until a week or two before the campaign, as they would be based on financial conditions at that time. lt was intimated. however, that the notes might bear interest in excess of 4h per cent. the interest rate on the third and fourth loans.
 After studying the financial con ditions in an parts of the country" said Mr. Glass, "I have determined that the interest of the United states wlll best be served at this time by the issuance of short term notes. rather than of long term bonds, which would have Co. bear the limited rate of in- terest Of iA per cent.
 Form of Notes
 "Thc Victory Liberty loan will. therefore take the form Of notes of the United States. maturing in not over five years from the date of issue. These notes will be, as were the Lib 'orty loan bonds. the direct promise Co pay of the United States; will be is- sued both as registered and coupon form, and the coupon notes will be in final form and will have attached the interest coupons covering the entire life Of the notes. I am hopeful that the notes in final engraved form will be ready for delivery by the opening of the campaign April 2l.
 T am led Co adopt the plan of issu- Ing short term notes rather than long term bonds largely because of the fact that I believe that a short term issue will maintain a price at about par after tho campaign. is concluded, 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 those notes will bear. because this decision must be based on existing conditions immediately prior to the opening of the campaign.
 Use Intensive Campaign
 "l take this opportunity to repeat what I have already stated. that it is the intention of the treasury depart ment Co carry on the same kind of in- tensive campaign for distribution as heretofore. It would he q most unfOr- tunate occurrence if the people of the United States failed to take these notes. thus placing the burden of sub scriptions on the banks. The business of the country looks to the banking system for credit with which 10 carry on it's operations, and if this credit IS absorbed to a large extent by the pur- chase of government securities. there will be many limitations placed upor the supply of credit for business pur. poses. our merchants and manurac- turers need ample credit for setting the wheels of industry in motion roi peace time production and distribu. ton. and the wage earner is directly interested in seeing that these wheels are kept moving at normal rate ir order that full employment at goot wages may continue. and where tn, readiustment conditions have uecessi tated slowing down of industry. it vitally important that activity be re sumed and labor re-employed at tn, earliest possible moment.
 q therefore. ask the American peo- pie once again to give their supper 10 their government in order that thi' great loan may be made an over, whelming success by the widest pos. sible distribution"