Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1919-03-27
Statement by Secretary Glass.

The Victory Liberty Loan campaign
will open on Monday, April 21st, and
will close on Saturday, May 10th. Un-
der the Act of Congress as approved
September 24th,' 1917, and amend
ments thereto, the Secretary of the
Treasury still has the authority to is
sue bonds similar to those of the
Second, Third and Fourth Liberty
Loans othe extent of not over $5,-
022, ,51S, 900, but any issue of bonds un-
der authority of this Act is limited as
to rate of interest to maximum of
Az per annum and would be subject
to supertaxes and profits taxes except
for the right to participate in the ex-
emption of $4,000 principal amount
with other outstanding issues of Lii
berty Bonds and Certificates.
The Congress has now passed the
Victory Liberty loan Act which was
approved March 3, 1919, under which
the Secretary of the Treasury is au-
thorized to issue notes Of the United
States to the extent of not over ST.
600, 900, 900 upon such terms and con-
ditions and at such rate or rates of
interest as he may prescribe. 1t is
provided in this act that these notes
shall be payable at such time or times
not less than one year or more than
five years from the date of issue as
may be prescribed by the Secretary.
After studying financial conditions
in all parts of the country, I have
determined that the interests of the
United States will best be served at
this time by the issuance ofshort term
notes rather than of longer term bonds
which would have to bear the limited
rate of interest of AZ.
The Victory Liberty Loan will there
fore 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 Liberty
Loan Bonds, the direct promise to pay
of the United States, will be issued
both in registered and coupon form,
and the coupon notes will be in final
form and will have attached the in
terest 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 on April 21st.
/ am led to adopt the plan of issu-
ing short-term notes rather than long
term bonds largely because of the
fact that believe that short-term
issue will maintain price at about
par after the campaign is concluded
far more readily than would a longer
term issue.
I have not yet reached conclusion
as to the rate of interest and exemp-
tions from taxation which these notes
will bear because this decision must
be based on existing conditions i'm
mediately prior to the opening of the
campaign.
! take this opportunity to repeat
what have already stated that 1t is
the intention of the Treasury Depart
ment to carry on the same kind of in
tensive campaign for distribution
as heretofore. 1t would be a most
unfortunate occurrence if the people
Of the United States failed to take
these notes, thus placing the burden
of subscriptions on the banks. The
business of the country looks to the
banking system for credit wherewith |
to carry on its operations, and if this
credit is absorbed to a large extent
by the purchase of Government Sc
curities, there will be many limitations
placed upon the supply of credit for
business purposes. Our merchants
and manufacturers need ample credit |
for setting the wheels OF industry in
motion for peace time production |
and distribution, and the wage Garner
is directly interested in seeing that
these wheels are kept moving at
normal rate in order that full en-
ployment at good wages may CON
tinue, and where readjustment con-
ditions have necessitated a Glowing
down of industry, 1t Is vitality impor-
tant that activity be resumed and |
labor re-employed at the earliest pos
sible moment.
l therefore ask the American people
once again to give their support to
their Government in order that this
great Loan may be made an over
whelming success by the widest pos
sible distribution.
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