Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1919-04-15
NEW VICTORY LOAN
TAKES TWO FORMS
THE PARTIALLY TAX EXEMPT
NOTES BEAR 4s4 PER CENT
Interest.
ONLY FOR s4,5OO,OOO,OOO
Wholly Tax Exempt Notes viii Pay
334 Per Cent.-Belated War Elk
penses VIII Be Financed by
Other Forms of Security.

Washington. d. C-Terms OF the
Victory loan are announced by Sec
rotary Glass. as follows:
Amount, s4.5OO,OOO,OOO. oversubscrip-
lions to be rejected.
Interest, Az per cent, for partially
tax exempt notes, convertible into
81 per cent notes wholly tax ex-
empt
Maturity four years, with the treas
ury reserving the privilege of re-
deeming the notes in three years.
The 81 per cent notes to be issued
later also may be converted subse-
quently back into Az per cent notes.
The Az ped cent securities are to
be exempt from state and local tax
alton, except estate and Inheritance
taxes. and from normal rates of fed
eral income taxes. The 80 per cent
securities are exempt from sll fed
eral, state and local taxes except
estate and inheritance taxes.
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
by popular campaigns.
Former Issues Not Convertible.
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 Vic
tory issue serving directly to main
tain market prices on past issues.
The official opening date is April
21. The drive will continue three
weeks until May TO-
Statement by Glass.
I'm fixing the terms of the issue, -
said Secretary Glass;" announcement
of the Victory loan. ''the treasury has
been guided largely by the desire to
devise a security which will not only
prove attractive to the people of the
country in the first instance, but
terms of which should prove a good
teal prices of the two series; and
should not affect injuriously the mar.
ket for the existing bonds of the Lib.
erty loans.
81 am sure that the people of Amer.
lea will subscribe to this Victory loan
in the same spirit of patriotism that
! they have shown in the past to the
end that the notes may be as widely
distributed as possible, and that our
banking institutions may be left free
to- supply the credit necessary for
the purpose of industry and com
merce and the full employment of
labor.
The Victory Liberty loan will take
the form of Az per cent. three or
| four year convertible gold notes of
the United States, exempt from state
! and local taxes except estate and in
heritance taxes and from normal fed
eral income taxes. The notes will be
convertible, at the option of the hold
er, throughout their life into 81 per
cent three or four year convertible
gold notes of the United States. ex-
empt from all federal, state and local
taxes. In like manner the 81 per
cent notes will be convertible into
the Az per cent notes.
The notes of both series will be
dated and bear interest from May 20,
1919, and will mature on May 20,
1928 Interest will be payable on De-
cember 10, 1919, and thereafter semi
annually on June Is and December
Is, and at maturity All or any of
the notes may be redeemed before
maturity at the option of the United
States on June 10 or December 10,
1922, at par and accrued interest"
The interest rate of Az per cent is
the highest borne by any of the war
issues.
18th District Loan Quota.
San Francisco.-The 18th federal
reserve bank districts quota will be
1901, 100000. San Franciscos quota.