Omaha daily bee., 1919-03-13
VICT OF Y.
CAMPAIGN
WILL OPEN
APRIL 21
Three Weeks to Be Devoted to
Receiving Subscriptions to
Five Billion Issue of
Short Term Notes.

Washington, March 12.-The Vic
tory Liberty Loan campaign will
open Monday, April 2l, and close
three weeks later-Saturday, May TO-
Secretary Glass announced the
dates tonight, together with the fact
that short term notes maturing in
not over five years would be issued
instead of longer term bonds. The
amount of notes to be offered was
not disclosed, but it has been gen.
orally understood that the loan
would be for minimum of $5,000,-
100000 with the treasury reserving
the right to accept all over subcrip-
tions.
Mr.. Glass said the interest rate
on the notes and the amounts to
be exempted from taxatio. would
not be determined until a week or
two before the campaign as they
would be based upon financial con-
ditions at that time. 1t was intimat-
ed, however, that the notes might
bear interest in excess of 4A per
cent, the interest rate on the third
and fourth loans.
Secretary's Statement.
"After studying financial condi-
tions in al 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 "A 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
issue. These notes will be, as were
the Liberty loan bonds, the direct
promise to pay of the United
States, will be issued both in regis
tered and coupon form, and the cou-
pom notes will be in final form and
will have attached the interest cou-
pons covering the entire life of the
notes. l am hopeful that the notes
in fral engraved form will be
ready for delivery by the opening
of the campaign, on April Il.
Il am led to adopt, the plan of
issuing short-term notes rather than
long-term bonds largely, because of
the fact that believe that a short
term issue will maintain a price at
about par after the campaign is
concluded far more readily than
would longer term issue.
Il have not yet reached a con-
clusion as to the rate of interest
and exemptions from taxation
which those notes will bear because
this decision must be based on ex-
listing conditions prior to the open
ing of the campaign.
Asks Popular Subscriptions.
81 take this opportunity to repeat
what / have already stated, that it
is the intention of the Treasury de-
partment to carry on the same kind
of intensive campaign for distribu-
ton as heretofore. 1t would be a
most unfortunate occurrence if 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 for
credit wherewith to carry on its
operations and if this credit is alb
sorbed to large extent by the pur-
chase of government securities there
will be many limitations placed upon
supply of credit for business pur-
poses.
Our merchants and manufactu-
rers need ample credit for setting
the wheels of industry in motion for
peace-time production and distribu-
ton and the wage Garner is directly
interested in seeing that these
wheels are kept moving at a nor
NAL rate in order that full employ
ment at good wages may continue
and where adjustment conditions
have necessitated a slowing down
of industry it is vitality important
that activity be resumed and labor
re-employed at the earliest possible
moment.
Il therefore ask the American
people once again to give their sup
port to their government in order
that this great loan may be made
an overwhelming success by the
widest possible distribution.