The New York herald., 1922-10-09
Persons Seeking $4,000 Or
Less Will Be Favored
in Alloting.
WILL Be PUT OUT AT PAR
Applications Will Be Received
at Banking HoAses-To Be
Dated October 1G.

Dated October 1G.
For the first time since the signing
of the armistice in 1918 the Govern
ment of the United States is requesting
it's people to-day to subscribe for an
issue of long term Treasury bonds.
The Secretary of the Treasury will
receive subscriptions at par and ac-
crued interest for s500,000.000 or
thereabouts of twenty-five year to
thirty year gold bonds of the United
States dated October 16. 1922, and
bearing interest at the rate of Az per
cent. payable semi-annually. They
will fall due on October Is, 1852, but
are redeemable at the option of the
United statesRt par and accrued in
terest on and after October 15. l947.
The offering represents the first step
of the Government in refunding the
country's war debt and the short term
years When Secretary Mellon an
nounced his refunding program on
April 30. 1921, the Government had
approximately $500. 900 outstand-
ing obligations maturing on or before
June 80, 1928. About $4,000 600 900 of
this amount having been retired or re-
funded. maturities aggregating sS,500,
10000 must be met at or before the
end of the current fiscal year.
ObIigations to BE Met,
These obligations consist of $1,100.-
600 900 in Treasury certificates. $685.
100000 in War Savings certificates and
$500. 900. 900 Victory notes.
Applications for the new bonds will be
received at the Federal Reserve banks,
as fiscal agents for the United States.
and at banking institutions generally
Within the limitation on the amount OF
the offering applications from any one
subscriber for bonds not exceeding s10,
900 will be allotted in full and applica-
tions for amounts in excess of that
figure will be received subject to allot-
ment.
Payment may be made in cash or in
Treasury certificates of Indebtedness OF
Series D-1922. maturing October 16.
1922; of Series TD-1922 and I'D 2-1922,
any unmatured coupons attached). and
I'm Victory notes of the 4A per cent.
series whether or not called for redemp-
ton, at par. with an adjustment of ac-
crued interest as of October 49, 1922.
announcement by Mellon.
The announcement made by Andrew
w Mellon, Secretary Of the Treasury.
through the Federal Reserve Bank of
New York. follows:
"The Secretary of the Treasury invites
! subscriptions, at par and accrued in
terest from the people of the United
States, for Az per cent. Treasury bonds
of 1947-52. of an issue OF gold bonds OF
the United States. authorized by the act
OF Congress. approved September "a,
1917, as amend, d. The amount of the
Offering will be $500. 200. 900, or there
abouts. with the right reserved to the
Secretary of the Treasury to allot addi-
tional bonds up to a limited amount to
the extent that Az per cent. Victory
notes or Treasury certificates of in
debtedness of Series I'd or I'D 2-1922
are rendered In payment.
"Thc bonds will be dated October 16.
1922. and will bear interest from that
date at the rate of AZ per cent. per
annum. payable April Is and october Is
IN each year on semi-annual basis.
The bonds will mature October 10. 1852.
mt may be redeemed at the option of
the United States on and after October
Is. 1947, in whole or In part, at par and
accrued interest. on any interest day or
days on four months notice OF redemp-
tion given in such manner as the Secre-
tary OF the Treasury shall prescribe.
Plan for Redemption.
"In case of partial redemption the
honds IN he redeemed will be determined
by such method as may be prescribed by
Tho Secretary Of the Treasury. From
tho date Of redemption designated In any
such notice interest on the bonds called
for redemption shall cease. The princi-
nal and interest of the bonds will be
payabIe in United States gold coin OF
the present standard Of value. Bearer
bonds with interest coupons attached
will be issued In denominations of 500.
$500. $1,000. $4,000 and $4,000. Bonds
registered as TO principal and interest
will be issued In denominations Of 500.
$500. $1,000. $1,000, $4,000. $4,000 and
100000.
Provision will be made for the inter-
change OF bonds OF different denomina-
tions and OF coupon and registered bonds
and for the transfer of registered bonds
without charge by the United States.
under rules and regulations prescribed
by the Secretary OF the Treasury.
THE bonds shall oe exempt both as
60 principal and interest from all taxa
ton now or hereafter imposed by the
United States. any state. or any OF the
possessions Of the United States. or by
any local taxing authority. except (a)
estate or Inheritance taxes. and OBJ
graduated additional income taxes. COM
monty known as surtaxes, and cxccss
profits and war profits taxes. now or
hereafter imposed by the United States
upon the income or profits Of individ-
uals. partnerships, associations or cor
porations.
THE interest on an amount of bonds
Confined on Page Nineteen.
- u-s-s - n~.xn.-~-x