New-York tribune., 1922-10-09
Mellon Sends Letter

and certificates has already been placed
on sale.
Mellon Sends Letter
{ The New York Federal Reserve Bank
last night sent to all hanks in this
district copy OF the loan circular and
a letter by Secretary Mellon. There
is TO be no popular campaign OF dis
! tribution, as III the case OF Che Lib
erty loans. The operation is TO be
conducted purely on business lines, and
the limited amount, the favorable rate
and other features are regarded as
certain to make IL huge success, All
banks have been asked to accept sub
scriptions to the loan and their will
iingness to do SO Is already taken Tor
granted.
The text Of the oficiaI circular de-
scribing the loan and the conditions
Of subscriptions follows:
"The Secretary Of the Treasury in
vitcs subscriptions, at par and accrued 9 !,
interest, from the people Of the United
States, for 4M per cent Treasury bonds
of 1847-'52, OF an issue Of gold bonds
Of the United States authorized by the
act Of Congress, approved September
ID, 1917, as amended. The amount OF
the Offering will be s5oo,O00.00o, or
thereabouts, with the right reserved to
tho Secretary of the Treasury to allot
additional bonds up to q limited
amount to the extent that A per cent
Victory notes or Treasury certificates
Of indebtedness Of Series I'd, or I'D
2-l922 are rendered in payment.
Description of Bonds
"The bonds will be dated October 16,
1922, and will bear interest from that
date at the rate Of AN per cent per
annun,, payable April Is and October
10 in each year on semi-annual basis.
but may be redeemed at the option OF
the United States on and after October
15, 19d7, in whole or in part, at par
and accrued interest, on any interest
day or days, ON four months notice of
redemption given in such manner as
the Secretary Of the Treasury shall
prescribe.
"In case of partial redemption the
bonds to be redeemed will be deter
mined by such method as may be pre-
scribed by the Secretary OF the
Treasury. From the date of redemp-
tion designated in any such notice, in
terest on the bonds called for redemp-
tion shall cease. The principal and
interest of the bonds will be payable
in United States Gold Coin of the pres
ent standard Of value. Bearer bonds
with interest coupons attached will be
issued in denominations of $780, $500,
$1,000. $4,000 and $4,000. Bonds
registered as to principal and interest
will be issued in denominations Of $t0o,
$500. $1,000, $4,000, $4,000, $50 ,oGo
and 100000.
provision will be made for the in
ter-change Of bonds of different
denominations 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 Secre-
tafy of the Treasury.
Tax Exemptions
"The bonds shall be exempt. both az
to principal and interest, from ali
taxation now or hereafter imposed Nv
the United States, any state, or any OF
the possessions of the United States. o.
by any local taxing authority, except
(a) estate or inheritance taxes, and
(b) graduated additional income taxes
commonly known as surtaxes and ex,
cess profits and war profits takes. nov
or hereafter imposed by the United
States upon the income or profits OF
individuals, partnerships, associates o,
corporations. The interest on ar
amount of bonds and certificates
authorized by said act approved Sep.
tember "a, 1917, and amendments there.
to, the principal Of which does not ex.
ceed in the aggregate $4,000 owned By
any individual, partnership, association
or corporation shall be exempt from