The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-03-14
Issue to Be Short Term Notes
Instead of Long Term Bonds
as Heretofore.
STATEMENT FROM GLASS
Amount to Be Offered is Not
Disclosed But 1t is Under
stood UnOfficially to Be Five
Billion.

washington, March 13.-The vic
tory liberty loan campaign will open
Monday, April 81 and close three
weeks later-Saturday. May 10.
Secretary Glass announced the
dates last night, together with the
fact that short term notes maturing
In not over five years would be is
sued instead of longer term bonds.
The amount OF notes to be offered
was not disclosed, but it has been
generally understood the loan would
be for a minimum of s5,OOO.OOO.-
900 with the treasury reserving the
right to accept all over-subscrip-
tions.
Mr.. Glass said the interest rate on
the notes and the amounts to he
exempted from taxation would not
be determined until week or two
before the campaign as they would
be based upon financial conditions
at that time. 1t was intimated.
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 condi-
tions in all parts of the country"
said Mr.. Glass, II have determined
that the interests of the United
States will best be served at this
time by the issuance OF short-term
notes rather than OF longer term
bonds which would have to bear the
limited rate OF interest OF IA per
cent
The victory liberty loan will
therefore take the form of notes of
the United States maturing in not
over five years from the date OF is
sue. These notes will be. as were
the liberty loan bonds, the direct
promise to pay OF the United States.
Will be issued both i'm registered
and coupon form. and the coupon
notes will be in final form and will
have attached the interest coupons
covering the entire life of the notes
| am hopeful the notes in final en-
graved form will be ready for de-
livery by the opening OF the cam
naign April 21
II am led to adopt the plan OF
issuing short term notes rather than
long term bonds largely because Of
the fact l believe the short term is
sues will maintain a price at about
par after the campaign is concluded
far more readily than would a lon
ger term issue
II have not yet reached con-
clusion as to the rate OF interest and
exemptions from taxation which
those notes will bear because this
decision must be based on existing
conditions Immediately prior to the
opening of the campaign.
II take this opportunity to repeat
what I have already stated. that it
is the intention of the treasury de-
partment to carry on the same kind
OF intensive campaign for distribu-
tion as heretofore. 1t would be a
most unfortunate occurrence IL the
people of the United States failed
to take these notes thus placing the
burden of subscriptions on the
banks. The business of the country
looks to the banking system Of
credit wherewith to carry on its op-
erations, and If this credit is alb
sorbed to a large extent by the pur-
chase OF government securities. there
will be many limitations placed up
on the supply of credit for business
purposes. Our merchants and man
ufacturers need ample credit for
business purposes. Our merchants
and manufacturers need ample
credit for setting the wheels of in
dustry in motion for peace-time pro-
duction and distribution and the
wage Garner is directly interested I'm
seeing that these wheels are kept
moving at normal rate IN order
that full employment at good wages
may continue, and where readiust-
ment conditions have necessitated a
slowing down OF industry, IL is vi
tally important that activity be re-
srmed and labor re-employed at the
earliest possible moment
"I therefore ask the American
people once again to give their sun