The Republican. [volume] (Oakland, Md.) 1877-current, 1927-05-12
SECOND LIBERTY BONDS
TO Be PAID OR EXCHANGED
Mellon Calls Second Liberty
Loan Bonds for Payment
November Is, 1927

washington, u. u, May o.-'oeCAS-
tary Mellon has called for payment |
on November Is, 1927, all outstanding
Second Liberty Loan bonds. Interest
on these bonds will cease on Novem-
Der Is, 1927. Approximately S1,70O,-
100000 of these bonds are now out !
standing.
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 bonds an
opportunity to exchange them for
other Government securities. No an
nouncements has as yet been made as
to the type Of security to be offered
in exchange, or the date on which the
exchange offer may be expected. The
Treasury explains that the terms of
the bonds require that notice be
given to the public six months in ad-
vance 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 redeemed on November
| Is, and will cease to bear interest on
that date.
If holders of Second Liberties desire
Ito have their bonds redeemed, they
should present them for payment on
November IS, 1927, but if they desire
other Government obligations in place
of their Seconds, they should watch
! for further announcement and notify
their bank to keep them informed 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, a
nationwide campaign was conducted,
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 or exchange some
of these bonds. While no such elabor-
ate 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
interest on November 18th. Banks
and trust companies throughout the
country 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 an
nouncement will shortly be broadcast
from the large radio stations of the
country.
The Importance of acquainting
bondholders with the fact that their
bonds have been called for payment
is emphasized by the Treasury's rec
ords of previous calls for redemption
or exchange. These records show
that there are still outstanding at the
present time, in the hands of the pub
lie, about S30,00O,00O in Government
securities upon which interest has
ceased. Included in this amount are
S3,600,000 in Victory notes which
ceased to bear interest in 1922 and
1923. There are also outstanding
$14,500,000 in temporary bonds of the
several Liberty Loans, to which were
attached only a limited number of
interest coupons. The last coupons
matured some seven years ago. The
holders Of these temporary bonds
have neglected 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 face of these facts, the
Treasury is especially anxious that
the present announcement reach as
many Second Liberty Loan bondhold-
ers as it is possible to reach through