The Washington herald., 1919-04-14
VICTORY LOAN
IN COLD NOTES
Secretary Glass Announces
434 Per Cent Will Be
Paid On Certificates.

The Victory Liberty Loan, which
will be offered for popular subscrin-
ton April q. will take the form of
4 3-4 per cent three-four year con-
vertible gold notes of the United
States, exempt from State and local
taxes, except estate and inheritancs
taxes, and from normal Federal in
come taxes. The notes will be con-
vertible, at the option OF he holder.
throughout their life into Ga per cent
three-four year convertible gold notes
OF the United States, exempt from all
Federal State and local taxes. ex-
cept estate and inheritance taxes. In
like manner the S-I per cent notes
will be convertible into the 3-4 per
cent notes.
The amount OF the issue will be
S4,5oo0op 600. which, with the deferred
iastsllments of income and profits
taxes payable. In respect to last years
income and Fronts, iur:ng the period
covered by the maturity dates OF
Treasury certificates of indebtedness
now outstanding. will fully provide
for the retirement OF such certificates"
said Secretary Glass last night The
issue will be limited 10 "a, 800 900 600
except as 1t may be necessary to in
crease or decrease the amount to
facilitate allotment. oversubscrip-
tions will be rejected and ailotments
made On a graduated scale similar in
its general plan to that adopted in
connection with the First Liberty
Loan. Allotment will b. mada in full
On subscriptions up 10 and includ ing
slo.O 200.
Interest From May. 1913.
The notes of botr series will be
dated and bear interest from May 30
1919. and will ma thre on May 20. 1923.
Interest will be pava ole On December
l., 1912 end thereafter semi-annually
on June Is and Decembe- Is and at
maturity. All or any OF the notes may
be redeemed before maturity at the
option Of the United States ~ June
Is or December Is, 1872. at pa and
accrued interest.
In fixing the terms Of the issue
the Treasury has been guided largely
by the desire to devise a security
which will not only prove attractive
to the people OF the country in the
first instance. but the terms of which
should insure good market for the
notes after the campaign Is over and
iaentical prices for the two series,
and should not affect injuriously the
market for the existing 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 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
financed by the issue Of Treasury
certificates from time to time as here
tofore. which may be ultimately re-
funded by the issue of notes or bonds
without the aid OF another great
popular campaign such as has char
acterized the liberty loans.
Appeals to People.
Il am sure that the. people OF
America will subscribe to this victory
loan in the same spirit of ps triotism
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 neces-
sary for the purpose of industry and
commerce and the full employment OF
labor. Let the worH see that the
patriots of America, out OF their
boundless resources, and with the
same enthusiasm and devotion to
country with which they prosecuted
the war to a victorious conclusion,
are determined to finish the Job"