Weekly journal-miner., 1919-04-16
FOUR AIID HALF BILLION !TO BE VICTORY LOAN
 BOND QUOTA

WASHINGTON, April l3.-Terms of the Victory loan were announced today by Secretary Glass They are:
 Amount $4,5OO,OOO,0GO, over-sub- scriptions to be rejected. Interest 434 per cent, for partially tax ex- empts notes, convertible into 334 per cent notes, wholly tax exempt.
 Maturity, four years, with the treasury reserving the privilege of redeeming the notes in three years.
 The 33z per cent notes to be issued later. also may be converted sub sequently back into Al per cent notes.
 The A per cent securities are to be exempted from state and local taxation, excepting estate and in heritance taxes, and from normal rates of federal income taxes, the 334 per cent securities are exempt from all federal, state and local taxes, except estate and inheritance taxes.
 The size of the, loan was much smaller than had been anticipated by most financial observers, who looked for an issue of about $6,000,000,0O0, 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 will be other issues of gov ernment securities to finance belated war expenses. These will not be floated by popular campaigns. None of the past issues of Liberty bonds are convertible into Victory bonds, and there are no specific provisions in the terms of the Victory issue, serving directly to maintain market prices on past issues.
 In many communities, the selling campaign already has begun actively without formal acceptance of sub scriptions, said reports today to the treasury, although the official open ing date IS April 21, one week from tomorrow The drive will continue three weeks, until May 10
 ''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 a security which will not only prove attractive to the people of the oountry;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 loans.
 This will be the last Liberty loan Although, as the remaining war bills are presented, further borrowing must be done, ! anticipate that the of the government in excess of the amount of taxes and other income can, in view of the de- creasing scale of expenditure, be readily financed by the issue of treas. ury certificates from time to time as heretofore, which may be ultimately refunded by the issue of notes or bonds without the aid of another great popular campaign such as has the Liberty loans"
 The interest rate of A per cent is the highest borne by any of the war issues. Financial interests have urg- ed five per cent rate, but Secretary Glass indicated recently that he re. garded such a rate as excessive, and speculation as to the rate recently has -evolved about AZ per cent The 33z' per cent rate of the tax exempt notes. nto which the 4}4s are convertible, is per cent higher than the .ax exempt first Liberty bonds, which nature in 30 years.