The Little River news., 1919-04-16
VICTORY LCAN 70 BE
 sa,5oo, ,0coy eco IN BONDS
Tax-Fxempt Notes to Be Issued In- stead of Bonds, as Previously;
 Maturity in Four Years.

l ffoohiiotou, APi II Ci llo Ol tue i Victory Liberty loan were announced
 today by Secretary Glass. They are:
 Amount $4,500,000,00O, oversubscrip- tio,ls 10 be fejected Interest 3-4 per cent LOT partially tax exempt notes. convertible into 3-4 per cent notes
 wholly :ax exempt
 Maturity four years with the treas i,ry reserving the privilege of redeem ing the notes in three years.
 The 3 3-4 per cent notes to be is- l sued later also may be converted sub- sequently back into. 3-4 per cent notes.
 The 34 per cent securities are to be exempt from state and local taxa tion excepting estate and inheritance taxes, and from normal rates of fed eral income taxes. The 3-4 per cent securities are exempt from all federal state and local taxes except state and 1 inheritance taxes.
 l The size of the loan was much small CT than had been anticipated by most l financial observers who looked for an issue of about $6,O0O, 1000, ,OOO, par ] ticularly in view of Secretary Glass past statement that the loan would be five or six billions.
 Last Liberty Loan.
 This will be the last Liberty Loan, Secretary Glass explained although there will be other issues of govern ment securities to finaEce belated war expenses. These will not be floated by popular campaigns @ None of the past issues of Liberty bonds are convertible into Victory loan notes, and there are no specific provisions in the terms of the Victory issue serving directly to maintain mar ket prices of past issues.
 | In many communities the selling campaign already has begun actively, without formal accep;ances of sub scriptions, said reports today to the treasury, although the official open ing date is April 21, one week from to- morrow. The drive will continue three weeks, until May 10.
 "In fixing the terms of the issue" said Secretary Glass announcement, "the treasury has been guided large y by the desire to devise a security winch will not only prove attractive to the people of the country, but the terms of which should insure a good market for the notes after the cam paign is ever and identical prices for the two series, and should not effect injurioasly the market or the exis- ing bonds of the Liberty Loans.
 This will be the last Liberty loan Although as the remaining war bills are presented further borrowing must be done. I anticipate that the requirements of the government, in excess of the amount of taxes and other income can in view of the de- creasing scale of expenditure be read fly financed by the issue of treasury certificates from time to time as here tofore, which may be ultimately re- funded by the issue of notes or bonds without the aid of another great pop u!ar campaign such as has character ized the Liberty loans.
 "I am sure that the people of America will subscribe 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 ln- stitutions may be left free to supply the credit necessary for 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 with the same enthusiasm and devotion to country with which they prosecuted the. war to a victorious conclusion, are determined to finish the job.'' Terms of the Loan.
 Terms of the loan are as follows:
 "The Victory Liberty loan, which will be offered for popular subscrip- tion on April 21, will take the form of 4 3-4 per cent three-four year con- vertible gold notes of the United States, exempt from state and local taxes, except estate and inheritance taxes, and from normal federal in come taxes. The notes will be con- vertible at the option of the holder, throughout their life onto 8 3-4 per cent three-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 3-4 per cent notes will be convertible into the 3-4 per cent notes.
 '"The amount of the issue will be $4 ,5O0, ,OOO,OO0, which, with the de> ferred installments of income and profits taxes. payable in respect to