New-York tribune., 1919-03-13
Victory Loan
Campaign TO
Open April =
Continued from page

its taxes, except for the right to
participate in the exemption Of
$1,000 principal amount with other
outstanding issues of Liberty bonds
and certificates.
"Thc 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
$1,000 600, 600 upon such terms and
conditions and at such rate or rates
OF interest as he may prescribe. 1t
is provided in this act that these
notes snail 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 condi-
tons in all parts of the country, |
have determined that the interests
Of the United States will best be
served at this time by the issuance
or short-term notes rather than Of
longer term bonds, which would have
to bear the limited rate of interest
Of IA per cent.
The Victory Liberty Loan will
therefore take the form of notes Of
the United States maturing in not
over five years from the date of is
sue. These notes viii 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 VIII have
ing the entire life Of the notes. I
am hopeful that the notes in final
engraved form VIII be ready for de-
livery by the opening of the cam
paign on April 81.
= am led to adopt the plan of
issuing shOrt-term notes rather
than long-term notes largely be-
cause Of the fact that I believe that
q short-term issue will maintain q
price al about par after the campaign
is concluded far more readily than
longer term issue.
u nave not yet reached cOnclu-
sion as to the rate Of interest and
exemptions from taxation which
these. notes will bear, because this
decision must be based on existing
opening of the campaign.
- take this opportunity to repeat
what | have already stated, that it
is the intention Of the Treasury De-
partment TO carry on the same kind
Of intensive campaign for distribu-
ton as heretofore. 1t would be
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 10 the banking system for
credit Wherewth to carry on its op-
erations. and if this credit is alb
sorbed TO q large extent by the pur-
chase Of government securities 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 distribu-
tion, and the wage Garner is di
rectly Interested in seeing that those
wheels are kept moving at normal
rate in order that full employment
at good wages may continue, and
where readjustment conditions have
necessitated a slowing down Of in
dustry il is vitally important that
activity be resumed and labor re-
employed at the earliest possible
moment.
Il therefore ask the American peo-
pie once again TO give their support
to their government in order that
TINS great loan may be mado an over
whelming success by the widest pos
slble distribution"