Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1927-05-12
SECOND LIBERTY
LOAN BONDS TO BE
PAID OR EXCHANGED
Mellon Calls Second Liberty Loan
Bonds for Payment November
10, 1927. Steps Taken. to In
form ALI Holders.

form ALI Holders.
Washington, D. c., May 9.-Secre-
tary Mellon has called for payment
on November Is, 1927, all outstand-
ing Second Liberty Loan bonds. In
terest on these bonds will cease on
November Is, 1927. Approximately
81, zoo, 100000 of these bonds are now
outstanding.
While the bonds will be paid on
November Is, 1927, it is quite prob
able that during the next six months
the treasury will extend to the hold
ers of the Second Liberty Loan bonds
an opportunity to exchange them for
other government securities No an
nouncement has as yet been made
as to the type of security to be Of
fered in exchange, or the date on
which the exchange offer may be ex-
pected. The treasury explains that
the terms of the bonds require that
a notice be given to the public six
months in advance of the redemption
date. The secretary's announcement
therefore, does not mean that the
bonds will be paid at the present time
but merely places the holders on no.
tice that their bonds will be redeemed
on November Is, and will cease to
bear interest on that date.
If holders of Second Liberties de-
sire to have their bonds redeemed,
they should present them for payment
on November Is, 1927, but if they de-
sire other government obligations in
place of their Seconds, they should
watch for further announcement and
notify their bank to keep them in
formed of any exchange offering that
may later be made by the treasury.
In 1917 and 1918, it will be recalled,
when the government was selling
bonds of the several Liberty Loans.
nationwide campaign was conduct
ed every available facility being used
to reach the public and sell the bonds.
The situation is now practically re-
versed, and the government is pre-
pairing to redeem oriexchange some Of
these bonds. While no such elabo-
rate canvass is contemplated for the
redemption notice as was undertaken
in 1917, the treasury nevertheless is
making a special effort to inform the
holders of Second Liberty Loan bonds
| that their bonds will cease to bear in
terest on November 18th. Banks and
trust companies throughout the cOun-
try will be asked to cooperate with
| the government in spreading the news
of this call for redemption, ana in adj
treasury will probably offer new Sc
curities in exchange. For the first
time the radio will be used by the
government as a means of reaching
millions of bondholders. An an
nouncement will shortly be broadcast
from the larger radio stations of the
country.
The Importance of acquainting bond
holders with the fact that their bonds
have been called for payment is en-
phasized by the treasury's records Of
previous calls for redemption or ex-
change. These records show that
there are still outstanding at the pres
ent time, in the hands of the public,
about $3O,O00OOO in government secu-
rites upon which interest has ceased.
Included in this amount are $780,
900 in Victory notes which ceased to
bear interest in 1922 and 1923. There
are also outstanding 14,50O,000 in
temporary bonds of the several Liber-
ty Loans, to which were attached only
limited number of interest coupons.
The last coupons matured some seven
years ago. The holders of these tenn
porary bonds have neglected to ex-
change them for permanent bonds
having the full number of interest
coupons attached, and until such ex-
change is made they have no means
of collecting the interest. In the face
of these facts, the treasury is especi-
ally anxious that the present an
nouncement reach as many Second
Liberty Loan bond holders as it is
possible to reach through the press,
the radio, and the banks of the coun-
try.
The Second Liberty Loan, which
was issued in November, 1917, was the
second large loan floated by the gov
eminent during the World War, and
while this loan does not mature until
1912, the condition of the money mar
ket and of the governments finances
makes it possible and advisable to
call the bonds for redemption in No
vember.
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