The New York herald., 1922-10-10
Big SUBSCRIPTIONS
FOR NEW Us. BONDS
Preliminary Figures Indicate
First Loan Since War Will
Be Oversubscribed.

WASHINGTON, Oct. 9.--Prelimnary re-
ports 10 the Treasury indicate that the
Governments $500.000.0 900 bond issue
the first since the war-has had a
very satisfactory reception by the coun-
try
1t Is too early. officials declared to-
night to estimate the probable amount
which will be subscribed by investors
for the ~ per cent. thirty year refund
ing bonds. but the reports from both
the East and West Of the first days
results are regarded with approval by
the Treasury.
Subscriptions to the new $500, 900. 900
United States Government public loan
poured into the Federal Reserve Bank
Of New York and banking institutions
generally yesterday. The new twenty
five to thirty year partially tax exempt
bonds, bearing interest at the rate OF
Az per cent. proved very attractive to
investors of all classes. and indications
were that the loan would be largely
oversubscribed
The announcement Of the new Gov
ernment long term loan was so unex-
pected at this time that only the very
large investors were heard from yester-
day. 1t was estimated that subscrip-
tions from banks. insurance companies
and institutions in this Federal Reserve
district on the first day of the loan
would run we'll above 100000 900. No
figures of subscriptions were forthcom-
ing from official sources at the close OF
business yesterday.
It was learned that one bank put In
subscription of $50.000.o00. another OF
s3o, 100000 and third of $25.0o0,o00.
Indeed, the bulk of the estimated total
of subscriptions came from about six
institutions.
AT the Federal Reserve Bank 1t was
said that the first days showing as
sured the success of the loan and from
other reliable sources 1t was learned
that at the present rate OF subscrip-
tions the new loan would be about three
times oversubscribed.
The result of to-day's subscriptions
probably will show to what extent the
bonds are being taken by the small IN
vestor. Many of the Wall Street banks
| sent out notices to their depositors last
night announcing that they were ready
| to take subscriptions to the new ponds
and the response to those invitations 10
expected to be very heavy.
Most Of yesterdays subscriptions
were for cash, the amount Of Victory
notes and Treasury certificates turned
in for exchange being very small. Banks
putting in large subscriptions do not
expect to be allotted anythring like the
amount of bonds they are asking tor
although they are quite ready to take
| the full amounts. Allotments made by
the Government will not be known until
next Monday.
The United States of America AZ per
cent Treasury bonds due from 1941 10
1852 are entirely exempt from the cor
poration income tax and from the
normal individual income tax. A prin-
cipal amount of $4,000 of all Govern
ment bonds issued under the Act or
September "a. 1917 (under which act
these bonds are issued), is exempt from
surtax to individuals. There is no other
exemption from surtax in the case OF
| this issue.
The tax department Of Brown Broth
ers o Co. calls attention to the present
status of Liberty 4 per cent and 4A
per cent bonds in respect Of the surtax
on individual incomes as follows:
(a) Exempt until July 2, 1928. a
principal amount of $4,000.
CD Exempt from July 8, 1928. to
July ., 1926. principal amount OF
$4,000.
(c) Exempt subsequent to July 2,
1926, a principal amount of $4,000 dn-
Guiding all bonds issued under the Act
of September "a, 1917).