Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-04-14
VICTORY LOAN
Continued from PAGE One)


from normal federal income taxes.
The notes will be convertible at the
option of the holder. throughout
their life into three and three-quar-
tiers per cent. three-four year con-
vertible gold notes of the United
States, exempt from all federal. state
and local taxes. except estate and
inheritance taxes. In like manner
the three and three-quarters per
cent. notes will be convertible into
the four and three-quarters per
cent. notes. The amount of the is
sue will be 1850, 600, 600. which with
the deferred installments of income
and profits taxes payable in respect
to last years income and profits.
during the period covered by the
maturity dates of treasury certifi-
Gates of indebtedness now outstand-
ing. will fully provide for the retire.
ment of such certificates. The is
sue will be limited to $500, 600. 600
except as it may be necessary to in
crease or decrease the amount to
facilitate allotment. Over-subscrip-
tons will be rejected and allotments
made on a graduated scale similar
in it's general plan to that adopted
in connection with the first Liberty
Loan. Allotment will be made in
full on subscriptions up to and in
Guiding $4,000.
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
December Is. 1919. and thereafter
semi-annually on June Is and De-
cember Is, and at maturity. All or
any of the notes may be redeemed
before maturity at the option of the
United States on June Is or Deem
Der Is. 1922. at par and accrued in
terest"
The interest rate of 3-4 per cent.
is the highest borne by any of the
war issues. Financial interests have
urged five per cent. rate. but Sec
rotary Glass indicated recently that
he regarded such rate as excessive,
and speculation as to the rate recent
ly has revolved about 4 IL per cent.
The ) :;-4 per cent. rate of the tax
exemption notes into which the 4 "a
per cent. notes are convertible. is a
quarter per cent. higher than the tax
exempt first Liberty Loan bonds,
which mature in so years.
Secretary Glass has announced re-
peatedly that the terms of the Victory
Loan would be such that it might be
than past issues. In all his speeches,
however. he has emphasized that the
patriotism of the American people
must be relied on TO make the loan
complete success.
The coming loan is IN, only loan
since the first on which oveI-subscrip-
tons have not been accepted in whole
or in part. Compared with the 50. 993.-
$4,000 subscriptions of the fourth
loan the aggregate OF the victory is
sue will be nearly $2.500.00O.O 900 less.
Already $685., 100000 certificates of
Indebtedness have been issled. includ-
ing the current issue. in anticipate
of the Victory Liberty Loan, but $780,
100000 of these have been called in for
imemdiate redemption. There will re-
main $200.00O,O0O more certificates
than proceeds of the Victory Liberty
Loan, to be met from tax receipts or |
from proceeds from future issues of !
certificates.
For some time the Treasury had
contemplated terms for the Victory
Loan which would have a direct in |
fiuence in keeping up the market price |
of past issues, but apparently these
plans were abandoned.
Terms of the Victory Liberty Loan
issue may be compared with the fol- |
lowing terms Of past issues:
First loan. $4,000, zoo. 900. ; IL per
cent. tax exempt maturity 80 years.
Second loan. $4,000. 100000 offered, |
$4.S17,000.oo0 subscribed. s3.SOS, oO0.- !
900 accepted. 4 per cent. partially tax
exempt. maturity 25 years.
Third loan. $4,000, 600, 900 offered. |
s4.176.000.000 subscribed and accepted. |
4 II per cent partially tax exempt, |
maturity 10 years.
Fourth loan. $4,000. 900, 900 offered. |
s6.9s3. 100000 subscribed and accepted. |
1-2 per cent. partially tax exempt. |
with special conditions for exemption |
for past issues. maturity 90 years.
War Savings Stamps bear the equiv
alent of four per cent interest and ma
ture in five years.
90 0a,,os TIL