Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1927-05-13
Second Liberty Loan Bonds To Be
Paid Or Exchanged.

Secretary Mellon has called for payment
on November is. 1927. all outstanding
Second Liberty Loan Bonds. Interest on
these bonds will cease on November is,
1927. Approximately $i.700,000.000 Of
these bonds are now outstanding.
While the bonds will be paid on Novem-
Der IS, 1927. it is quite probable that
during the next six months the Treasury
will extend TO the holders Of the Second
Loan Bonds an opportunity to exchange
them for other Government securities. No
announcement has as yet been made as
to the type of security to be offered in ex-
change. or the date on which the exchange
offer may be expected. The Treasury ex-
plains 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 notice that their bonds will be
hCoOChCu vi NONCAuDCi lOs anu Will CCd5C
to bear interest on that date.
II holders Of Second Liberties desire to
have their bonds redeemed, they should
present them for payment on November
is, 1927, but il they desire other Govern
ment obligations in place of their Seconds.
they should watch for further announce
mani and nnfifv thar hanL 70 Laar ,har,
informed Of any exchange Offering that may
later be made by the Treasury
10 1917 and 1918. it will be recalled,
when the Government was selling bonds
Of the several Liberty Loans. nation
wide campaign was conducted. every avail
able facility being used to reach the public
and sell the bonds. The situation is now
practically reversed and the Government
is preparing TO redeem or exchange some
OF these bonds. While no such elaborate
canvass is contemplated for the redemp-
tion notice as was undertaken in 1917, the
Treasury nevertheless is making a special
effort to inform the holders of Second
Liberty Bonds that their bonds will cease
to bear interest 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. and in advising the
holders of bonds that the Treasury will
probably offer new securities in exchange.
For the first time the radio will be used
by the Government as a means of reaching
millions Of bondholders. An announce
ment 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 empha-
sized by the Treasury's records of previous
calls for redemption or exchange. These
records show that there are still outstand-
ing at the present time, in the hands Of the
public. about 100000 in Government
securities upon which interest has ceased
Included in this amount are $3,600,00O
in Victory notes which ceased to bear inter
est in 1922 and 1928. There are also
outstanding $l4.500.000 in temporary
bonds Of the several Liberty Loans, to
which were attached only a limited num-
Der Of interest coupons. The last coupons
matured some seven years ago. The hold
ers of these temporary bonds have neglect.
ed TO exchange them for permanent bonds
having the full number of interest coupons
attached. and until such exchange is made
they have no means Of collecting the in.
terest. In the face Of these facts. the
Treasury is especially anxious that the
present announcement reach as many
Second Liberty Loan bondholders as it i:
possible to reach through the press, the
radio and the banks of the country.
The Second Liberty Loan, which wa.
issued In November. 1917. was the seconC
large loan floated by the Government dur
ing the World War. and while this loar
does not mature until 1912. the condition
of the money market and of the Govern
ments finances makes il possible and ad
visable to call the bonds for redemption il
November.