Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-04-14
INTEREST RATE
Of WAR LOAN To
:: >: s MORE THAN
FORMER ISSUES
Amount to Be -Four and Half
Billions and Interest Fixed
at Four and Three Quarters
Per Cent.
WILL BE LAST ONE
GLASS ANNOUNCES
Notes Are to Be Dated May 20,
and to Bear Interest Until
May 20, 1923, and Payable
Semi annually,

OGllIl dtllludlly,
tsN soEN,na JOURNAL SPECIAL LEAsEo wIstI
Washington. April 13-Terms of
the Victory Loan were announced to-
day by Secretary Glass. They are
Amount S4.500. geo, oversub-
scription to he rejected.
Interest ga per cent for partially
exempt notes. convertible into 3 3-i
per cent notes wholly tax exempt
Maturing, four years, with the trea-
suring the privilege of redeeming the
notes in three years.
! The "a notes to be issued later.
also may be convertible subsequently
| back into 4 3-4 per cent notes.
| The IA per cent securities are
| to he exempt from state and local tax
alton, excepting estate and Inherit
ance taxes and from normal rates of
| federal income taxes, the "a per cent
securities are exempt from all federal,
state and local taxes except estate and
| inheritance taxes
The size of the loan was mucn
| smaller than had been anticipated by
most financial observers who looked
| for an issue of about 81, 900 .000. 900.
! particularly in view of Secretary
Glass past statements that the loan
| would be five or six billions.
This will be the last liberty loan,
| Secretary Glass explained, although
there viii he other issues of govern
! ment securities to finance Delayed
war expenses, There will not be
! floated by popular campaigns.
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 Victory
issue serving directly to maintain
market nrices ON past issues
Campaign Under Way.
In many communities the selling
campaign already has hegun actively
| without formal acceptance of sub
scriptions, said reports today to the
| treasury, although the official open
| ing date is April 81. one week from
| tomorrow The drive will continue
three weeks until May TO-
In 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 security which will not only
prove attractive to the people of the
| country in the first instance. but the
terms of which should insure a good
market for the notes after the cam
paign is over and Identical prices for
the two series, and should not affect
injuriously the market for the exist
ing bonds of the Liberty Loan
This Will be the last Liberty Loan
Although as the remaining war bills
are presented further borrowing must
be done | anticipate that the re-
quirements of the government. in ex-
| cess of the amount of taxes and other
income can, in view of the decreasing
scale of expenditure, be readily IL
nanced by the issue Of treasury GER
tificates from time to time as hereto
fore, which may be ultimately re-
funded by the issue of notes or bonds
without the aid OF another great pop
ular campaign such as has character
lied the Liberty Loans"
Terms of the Loan.
Terms of the loan are as follows:
THE Victory Liberty Loan. which
will be offered for popular subscrip-
tion on April 81, win take the form
of AZ per cent three-four year con-
vertible gold notes of the United
States, exempt from state and local
taxes, except estate and inheritance
taxes, and from normal federal in
come taxes, The notes will be con-
vertible. at the option of the holder
throughout their life into 3 " per cent
convertible gold notes of the United
u
and local taxes, except estate and in
heritance taxes. In like manner the
3& per cent notes will be convertible
into the AZ per cent notes 49,
The amount of the issue will be
81 500, 900 900. which, with the de-
ferred installments of income and
profits taxes payable, in respect 10
last years income and profits, during
the period covered by the maturity
dates of treasury certificates of in
debtedness now outstanding. will fully
provide for the retirement of such
certificates The issue will be limited
to $4,000, 600, 900 except as it may be
necessary to increase or decrease the
amount to facilitate allotment. Over
subscriptions will be rejected and al
lotments made on n graduated scale
similar IN its general plan to thar
adopted in connection with the First
Liberty Loan. Allotment will be made
in full on subscriptions UP to and in
cluding $4,000.
THE notes of both series will be
dated and bear interest from May 20,
1919, and will mature on May 20.
1923, Interest will be payable on
December Is, 1919. and thereafter
semi-annnally on June Ii and De-
Cember Is. and at maturity. All or
fore maturity at the option of the
United States on June Is or Decem-
Der 10. 1922, at par and accrued in
tetrest."
Interest Highest Yet.
The interest rate of ~ per cent is
the highest horne by any of the war
issues. Financial interests have urged
a per cent rate. but Secretary Glass
indicated recently that he regarded
such a rate as excessive, and specuIa-
ton as to the rate recently has re-
volved about az per cent. The 3%
per cent rate of the tax-exempt notes,
into which the 4 q S are convertible. Is
u per cent higher than the tax
exempt First Liberty Bonds which
mature in thirty years.
The coming loan IS the only loan
since the first on which oversubscrip-
tions have not been accented in whole
or in part Compared with the So
993, 073,0 600 subscription of the Fourth
I.oap the nf fha Vtrfn,-y