New-York tribune., 1919-04-14
Clas S Lin1i S
Victory Loan to
s., ,5OO,000,00O
Continued from page l

be done. l anticipate the requirements
s. the government. In excess of the
amount of taxes and other income, can,
in view Of the decreasing scale of cX-
pendlture. be readily financed by the
issue Of Treasury certificates from time
to time as heretofore, which may be
notes or bonds without the aid of an
other great popular campaign such as
mas characterized the Liberty loans.
Il am sure the people of America
Will subscribe to TINS Victory Loan in
the same spirit of patriotism which
they have shown in the past, to the
end that the notes may be as widely
distributed as possible, and that our
banking institutions may be left free
to supply the credit necessary for the
purposes of industry and commerce
and full employment of labor"
Terms of Loan Defined
Terms of the loan were explained as
follows
"The Victory Liberty Loan, which
will be offered for popular subscrip-
ton on April 2l. viii take the form
of AZ per cent three-four year con-
vertible gold notes of the United
States, exempt from state and local
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$t per
cent three-four year convertible gold
notes of the United States, exempt
from all Federal, state and local
taxes, except estate and inheritance
taxes. Ir like manner the 80. per
cent notes viii be convertible into
the ~ per cent notes.
The amount of the issue will be
S45O0,000 000, which, with the de-
ferIad instalments Of income and
profits taxes payable in respect TO
last y-ar's 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 $4,000 600 600, except as il
may be necessary to increase or de-
crease the amount to facilitate allot-
ment. Oversubscriptions Will be re-
jected and allotments made on a
graduated scale similar in It's general
plan to that adopted in connection
with the first Liberty Loan. Allot-
ment VIII be made in full on sub
scripNons up to and including S1O,-
00O
The notes of both series will be
dated and bear interest from May 20,
: 1919, and Will mature on May 20,
lsz3. Interest viii be payable on
December -. 1919, and thereafter
semi-annually on june Is and De-
c9m0er 10, and at maturity. All or
any Of the notes may be redeemed
netofe maturity at the option of the
united States on June Is or Decem-
Der 10, 1922, at par and accrued in
teregt"
The intereA rate of "A per cent is
the highest borne by any of the war
issues financial interests have urged
per cent rate, but Secretary Glass
nd,cated recently that he regarded
soch rate as excessive. The 3M per
ceot rate Of the tax exempt notes, into
"nlcn the a. : are convertible, is u
per cent higher than the tax exempt
.o' ~ LIBERTY bonds, which mature in
Miriy years
secretary Glass has announced re-
peatee r the terms Of the Victory Loan
"pbid he snch that it might be regard
80 NOR on d commercial basis than
past issues. In all his speeches. how
yer ne has emphasized that the pa
.Ioti sm Of tho American people must
os os reiled on to make the loan a com
lhe coming loan is the only loan
s,hce me first On which ovcrsubscrtp-
t'ons nave not been accepted in whole
~, W IN part. Compared with the $685.
L'>'VVo subscrip iptions Of the fourth
.|an, The aggregate of the Victory Issue
w he nearly 81 800 900 900 less.
,@}ready s5,215, 900 300 in certificates
= ,ndeotedncss have been issued. in
.s]p'ilE ne current iseuc, in anticipa
ss~1 s'yn ~ ine Victory Liberty Loan, bat
e/'y'VVVVOD of tncse have been called
- fof Immediate redemption There
IN remain outstanding $500 900 900
ss,pis ceftihcates than proceeds Of the
.rtofJ Loan 70 be met from tax re-
ssIpts pr from proceeds from future
s.ges Ut certifcafcz.
fof tome time tho Treasury had
TpheFnpiated terms for the Victory
.n1'ah Which would have II direct in
- nsence ~ keeping up the market price
~ past iSsues, but apparently these
pans ~efc abandoned.
'efms III the Victory isnnc NAV be
synspared with the following tcrns Of
pazf issues
first loan, s20oo 900. 900, sM per
~ 80 faz exempt. maturity thirty
Eeeepd loan, 3s,00o 900 900 offered.
~ aes1yfy y3ptoD09 saksHri0ed. 43a0g .000.
lxp accepted, per cent partiallY tax
mp, maturity Twenty-Five years,
~ assrd loan $1,000 300 900 offered.
~ ~ ppf1Do,DeD subgcrjbed and accented
,c.. pfr cent partially tax exempt,
'asirtH ter yearg.
~ .eaftn as.in loan, sgO0O ,001, 900 offered.
F1S"~,'1DDDD subscribed and acGHptsd.