Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-04-14
Issue to Take Form of
Convertible Notes Ma
turing in 4 Years.

Washington. April IA. - An
nouncement last night by Secre-
tary of the Treasury Glass that the
amount of the forthcoming Victory
Liberty loan would be $4,000, ,000,-
600 came as surprise in financial
circles as it generally had been
expected the amount would be con-
siderably larger. In announcing
the terms of the loan Secretary
Glass stated that the loan would
wake the form of 4 y per cent con-
vertible notes maturing in four
years with the treasury reserving
the privilege of redeeming them in
three years. The notes which will
be exempt from state and local
taxes, except estate and inheri-
tance, and from normal federal
taxes, will be convertible into 3A
per cent notes exempt from all fed
eral, state and local taxation ex-
cept estate and inheritance taxes.
Highest Interest Rate.
Over-subscriptiOns will be re-
jected and allotments made on a
graduated scale similar to that
used in the first Liberty loan. The
interest rate of Az per cent is the
highest borne by any of the war
loan issues but is lower by one
quarter per cent than the rate said
to have been urged by financial in
terests. The selling campaign
opens April II and will continue
to May 10.
The loan will consist of two
classes of short term notes bear
ing 4a4 and 324 per cent interest,
respectively. and issued in the to-
tai amount of s4,50O,OOO 900.
Two Glasses OF Securities.
The two classes of securities to
be offered are:
Four and three-fourths per cent
convertible gold notes of the Unit
ed States. exempt from state and
local taxes, except estate and in
heritance taxes, and exempt from
FORMAL federal income taxes, but
not exempt from federal income
surtaxes. These notes will mature
in four years. be redeemable in
three years. and will be convertible
into the following class at any
time during their life at the option
of the holder.
Three and three-quarters per
cent convertible gold notes of the
United States exempt from all fed
eral. state and local taxes, except
estate and inheritance taxes. These
notes will mature in four years, be
redeemable in three years and will
be convertible into notes of the
foregoing class at any time during
their life at the option of the
holder.
Special Appeal to Public.
The AZ per cent series will be
the one generally subscribed to by
the majority of the people. The
81 series will appeal to persons
with larger incomes who would be
required to pay surtaxes on the
AZ per cent notes.
"The amount of the issue will be
S4,50O.000, 900, which. with the de-
ferred installment of income and
profits taxes payable in respect to
last years income and profits, dur
ing the period covered by the ma
turity dates of treasury certificates
of Indebtedness now outstanding,
will fully provide for the retire
ment of such certificates" said Sec
retary Glass. The issue will be
limited to $4,000, 5000 except as
it may be necessary to increase or
decrease the amount to facilitate
allotment
Get All Up to $4,000.
"OversubscriptionS will be re-
jected and allotments made on a
graduated scale similar in its gen
70 in,
ton with the first Liberty loan AL
lotment will be made in full on
subscriptions up to and including
$4,000.
1.-The notes on both series will be
dated and bear interest from May
20. 1919. and will mature on May
20. 1928. Interest will be payable
on Dec. Is, 1919, and thereafter
semi-annually on June Is and Dec. |
Is, and at maturity. All or any of
the notes may be redeemed before
maturity at the option of the Unit |
ed States on June or Dec. Is, 1922, |
at par and accrued interest.
This will be the last Liberty |
loan" he continued. Although, |
as the remaining war bills are pre- |
sented further borrowing must be /
done, l anticipate that the re-
ouirements of the government, in |
excess 4of the amount of taxes and /
other income can, in view of the /
decreasing scale of expenditure, |
readily be financed by the issue of
treasury certificates from time to
time. as heretofore, which may |
ultimately be refunded by the issue /
of notes or bonds without the aid of !
another great popular campaign J
such as has characterized the Lib
erty loans.
Confident People viii Reply. .
81 am sure that the people of