Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-10-02
To Liberty Bond Holders

IT HOSE investors in the first Liberty loan
converted bonds, bearing per cent in
terest and second Liberty loan bonds. also
bearing per cent interest have the privi-
lege of converting their holdings into bonds
bearing IA per cent, and it is the desire
OF their government that they take advan-
tage, of that privilege. Secretary Glass has
given second notice to this effect and has
announced that the Treasury Department
will keep the offer open indefinitely.
1t requires no pencil calculation to prove
the financial advantage OF such conversion
and In as much as the holders OF these securi-
ties must either exchange them before the
END OF the year for new per cent bonds or
convert Them into 4 las, it Is easy to see
that no additional personal inconvenience
will be involved. One or the other of these
transactions must take place for the reason
that the last interest coupon on the first
Liberty loan converted bond becomes payable
December ID of this year and the last coupon
on the second Liberty loan As becomes pay
able on November 49, 1919.
In other words, these bonds were issued
as temporary securities. In fact, all the war
loans OF the government except the first Lib
erty loan were made on temporary issues,
each with just enough coupons attached 10
tide the government over until the war
should end little later the Treasury De-
partment will make an announcement con-
corning the exchange of the third loan, the
March 10, 1920; the fourth Liberty loan, the
last coupon on which becomes payable Octo-
Der 10, 1920, and the Victory Liberty loan,
the last coupon which becomes payable
on May 15 1923.
Meantime, however, the first converted
bonds and the second As are matter OF i'm
mediate concern and their holders should
give attention 10 them without delay. II
such holders wish to convert their securities
into las all they need to do is to dctach
the remaining coupon, holding it until it
becomes payable, then turn the bond over
TO any bank for conversion. In its place will
be issued another temporary bond bearing
Ia per cent, which will have a coupon
payable on May ., in the of the second
As and June / ) in the case of the first con-
verified as. On or after these coupons be-
come payable, the government will issue per-
manent bonds with all coupons attached,
which will bear IA per cent to maturity.
IL the holder OF present As insist, however,
upon having more As instead of the more
valuable bond, the government, after Novcm-
Der ID or December IS, as the case may be-
Will issnc a permanent 4 per cent bond with
all coupons attached 1t is not regarded
as likely that many bond owners will prefer
the less valuable bond and for that reason
the Treasury has made no arrangement for
this exchange until after the 1emnorarv
bonds have maturcd.
Approximately $3.50, 100000 OF 4 per cent
Liberty loan bonds are still outstanding The
conversion privilege has been in effect for
many months and when Congress authorized
TINS exchange, it was assumed that the in
veStors in the less valuable securities would
lose no time in availng themselves of the
new issues For some reason many hundreds
or thousands OF these investors have held
back The only reason the government can
assign Tor this singular fact is the lack OF
general information as to the privilege which
is offered and as to the means OF cffecting
the conversion