The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1919-04-18

Terms of the Victory Liberty Loan
were announced Sunday by Secretary
Glass. They are:
Amount $4,5O0,OOO,0O0; oversub-
scriptions to be rejected.
Interest, Az per cent. for partially
tax exempt notes, convertible into
3% per cent notes wholly tax exempt.
" Maturity, four years, with the
treasury reserving the privilege of
redeeming the notes in three years.
None of the past issue, of Liberty
bonds are convertible into Victory
loan notes, and there are no specific
provisions in the terms of the Victory
issue serving directly to maintain
market prices Of past Issues
The 81 per cent. notes, to be issued
later, also may be converted subse-
quently back into Az per cent. notes.
The Az per cent. securities are to
be exempt from state and local tax
alton excepting estate and inheritance
taxes, and from normal rates of fed
eral income taxes. The 3A per cent.
securities are exempt from all feder-
al, 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 $4,000, 900, 900,
partially 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 govern
nent securities to finance belated
war expenses. These will not be
foated by popular campaign.
In many communities the selling
campaign already has begun actively,
without formal acceptance of sub
scriptions, although the official open
ing date is April 21. The drive will
continue three weeks until May 10.
This will be the fifth time the United
States government has tried to raise
a-large amount Of money through
popular subscriptions of bonds. AL
ready about SIT 000,000,000 has been
subscribed in Liberty bonds and liber-
al amounts have been collected in
war savings stamps.
The necessity of obtaining wide
popular subscription for this issue is
regarded by bankers as even more
urgent than in former loans. This is
due to the fact that banks are now
heavily burdened with certificates of
indebteness and other war time pa
pers and are less able to absoyb the
government offerings without detri-
fnent. to their own condition than has
been the case in previous loans.
Looking into the business future
it is essential that the banks be re-
lieved as much as possible from car
rying this loan in order that they will
be in a position soon after the cam
paign is over to make loans for COM
mercial business and for real estate
purposes. As this is understood to
be the last government loan to be
raised by popular subscription, it is
believed that there will be good deal
of subsequent borrowing that will
have to be arranged at not infrequent
intervals at the banks in order that
the treasury may be provided with
funds to complete the war time needs
y Terms of the loan were explained
as follows:
"The Victory Liberty loan, which
will be offered for popular subscrip'
ton on April 81, will take the form oil
AZ per cent. three-four year con
vertible gold bonds of the United
States,> exempt from state and loca
taxes, except estate and inheritance
taxes, and from normal income taxes
"The notes will be convertible a
the option Of the holder, Throughout
their life into 3&per cent. three
four-year old convertible gold notes o;
the United States, exempt from al
federal, state and localtaxes, excep
estate and inheritance taxes. In lik,
manner the 3A percent. notes will
be converted into the Az per cent
notes.
M "The amount of the issue will b,
@,500, 100000 which, with the de
ferred installments of income ant
profits taxes payable, in respect t,
last years income and profits, during
the period covered by the maturit,
dates Of treasury certificates of in
debtedness outstanding, will fully pro
vide for the retirement Of such Ger
tificates.
.sThe issue will be limited t
/, $4,000, 100000 except as it may be nee
essary to Increase or decrease tn
amount to facilitate the allotmen
0yersubscriptinns will be rejected IN
allotments made on graduated seal
\ similar in its general plan to tina
adopted In connection with the frs
Liberty loan. Allotment win be mad
ia full on subscriptions up to and in
! elnding $4,000.
The notes Of both series will b
dated and bear interest from Nay a