Evening star., 1922-07-26
CALL FOR billion 4 4;
IN VICTORY NOTES.
New Issue Of 4 Ia Per Cent
United States Notes Will
Be Offered.

Taking an important forward step,
American war debt to the public, the
Treasury announced last night two
operations: The calling for redemp-
tion on December Is. 1922. ~ per
cent victory notes bearing the dis
tinguishing letters A. B. c. d. e. or
F, and the Offering. in exchange for.
the victory notes, IL desired, of q new
series of Az per cent short-term
Treasury notes. dated August 1, 1922.
due September Is. 1925.
The call for the partial redemption
Of Victory notes affects about $1,000,
100000 face amount of notes, and pro-
vides for the redemption before ma
turity Of about half OF the victory
notes outstanding, leaving the bal
ance of the victory liberty loan TO
mature on May 20. 1923.
New Note Offering.
The notes offered for subscription
Will be in the amount of 100000. .00e
"or thereabouts." Secretary Mellon
announced, and will not be subject to
call for redemption before maturity.
The Treasury, however, 1t was said
reserves the right to allot addition
the extent that ~ per cent victory
notes are rendered in payment" The.
Treasury reserved the right to close
the subscription books at any time
without notice.
Such progress will have been made
in the refunding of the debt by jan
uary 1. 1928. Secretary Mellon said in
his letter to banks and trust compa-
nies. made public last night. that the
victory notes outstanding at that time
will have been reduced to about ST.
600, ,000. 900. or. in other words, a man.
ageable maturity, which can be dealt
with as opportunity offers without
spectacular refunding operations that
would upset the security markets and
disturb the course Of business and in
dustry."
Certain Series Unaffected. ..
The call for redemption in December
of part of the victory notes will not
affect. IL was said. victory notes with
series designated G. H. l. j. X or L..
which will become payable on May
20. 1928. according to their terms.
The new Treasury notes will bear
interest from August /, 1922. at the
rate Of ~ per cent. payable March
Is, 1923, and thereafter semi-annually
on September s and March Is in each
year. Applications will be received
at the federal reserve banks.
Bearer notes. with interest coupons
dtlACuSu, VIII Uc losucQ III ucuoHi-
nations Of 500. $500, $1,000. $4,000.
$4,000 and 100000. The notes will
not be issued in registered form. They
will be exempt both as to principal,
and interest from all taxation. except
estate or Inheritance taxes. graduated
additional income taxes. commonly.
known as surtaxes and excess-profte
as war profits taxes.
Ceremony Marks Action.
Selection Of the victory notes to be
called for redemption was made at
"a little ceremony performed in the
Secretary's Office at the Treasury at
tended by Undersecretary Gilbert,
W. G. Platt. chief clerk of the depart
ment; Gov. Strong of the Federal Re
serve Bank Of New York, and a group
of newspaper men. Two unsigned
orders calling for the redemption Of
a s., 200. 100000 of victory notes were
placed in a wastepaper basket Mr..
Platt drew out the order retiring the
to + notes. which was signed by
Mr.. Mellon.
The Treasury Secretary explained
that when it was determined to call
for redemption half of the outst2nd
ing victory notes under the refund.
ing plan he thought it would be only,
fair that the notes to be retired
should be chosen by lot, as interest
upon them would cease December 49,