The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-03-15
Secretary Glass Announces that
Campaign Begins April
Twenty-frst.
DRIVE WILL CONTINUE
THREE WEEKS
Victory Loan Will Have the
form of Short Term, Five year
Notes.

Washington. March 12.-The Vic
tory Liberty Loan campaign Will
open Monday, April q and close
three weeks later. Saturday, May ~
Secretary Glass announced the
dates together with the tact tha1
short term notes, maturing in not
over five years would be issued IN
stead of longer term bonds. The
amount of notes to be offered was not
disclosed but it has been generally
understood that the loan would be for
a minimum of s5.000,o0O,O0O with
treasury reserving the right to accept
all oversubscriptions.
Mr. Glass said the interest rate and
the amounts to be exempted from
taxation would not be determined un-
til q week or two before the cam
naign as they would be based upon
financial conditions at that time. 1t
was estimated, however, that the
notes might bear interest in excess OF
IA. per cent, the interest rate on
the third and fourth loans.
After studying financial condl-
ticns in all parts Of the country said
~. Glass, 81 have determined that
the interest Of the United, States VIII
best be served at this time by the IS
suance of short term notes rather
than of longer term bonds which
would have to bear the limited rate
of interest of IA per cent.
1.-The victory loan will therefore
take the form Of notes of the United
States, maturing in not over five years
from the date Of issue.
Those notes which will be as the
Liberty Loan bonds the direct prom
ise to pay of the United States, Will
be issued both in registered ana
coupon form. and the coupon notes
will be in final form and will have at
tached the interest coupons covering
the entire life of the notes I am
hopeful that the notes in final en-
sraved form will be ready for dcilv-
ary by the opening Of the campaign
On April q.
81 am led to adopt the plan OF IS
suing short term notes rather than
ong term bonds largely because OIL
he fact that I believe that short
erm issue will maintain price at
about par after the campaign is con-
,l1cted far more readily than would a.
ong term issue. !
IT have not yet reached declslonI
IS to the rate of interest and exemp-!
ions from taxation which those notes
will bear because this decision must
,e based on existing conditions i'm
nediately prior to the opening of the
81 take this opportunity to repeat
what Is:have already stated that II IS
he intention of the treasury depart
ment to carry on the same kind ot;
intensive campaign for distribution
as heretofore. It would be most.
unfortunate occurrence if the people.
of the United States failed to axe
these notes, thus placing the burden
of subscriptions on the banks. the
business Of the country looks to the
banking system for credit wncre-
with to carry on its operations
and if this credit is absorbed TO
large extent by the purchase Of SOY
ernment securities there will be many
limitations placed upon the supply OF
credit for business purposes. Our
and manufacturers need
ample credit for setting the wheels OF
industry in motion for peace tine
production and distribution anil the
wage earning is directly interested III
seeing that these wheels are Kept
moving at a normal rate in order that
full employment at good wages may
continue and where readJustment
conditions have necessitated slow
ing down of industry, it is vitally m
portant that activity be resumed ant.
labor reemployed at the earliest pos
sible moment.
81 therefore ask the American pso-
pei once again to give their support
to their government III order that lhls
great loan may be made an over
whelming success by the widest pos
sible distribution.