The midland journal. (Rising Sun, Md.) 1885-1947, 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
ceases on November Is, 1927. APP
proximately $1,70O, 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
holders of the Second Liberty Loan
Bonds an opportunity to exchange
them for other Government securi-
ties. No announcement has as yet
been made as to the type OF security
to be offered in exchange, or the
date on which the exchange may be
expected. The Treasury explains
the terms of the bonds require that
a notice be given to the public SIX
months in advance of the redemp-
ton date. The Secretary's an
nouncement, 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 Novem-
Der is, and will cease to bear inter-
est on that date.
If holders of Second Liberties de-
sire to have their bonds redemmed,
they should present them for pay
ment on November Is, 1927, but II
they desire other Government OBJ
legations in place of their Seconds,
they should watch for further an
nouncement and notify their bank
to keep them informed of any ex-
change offering that may be made
by the Treasury.
In 1917 and 1918, it will be re-
called, when the Government was
selling bonds of the several Liber-
ty Loans, a nationwide campaign
was conducted, every available
facility being used to reach the
public and sell the bonds. The sit
uation 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 rel
demption notice as was undertaken
in 1917, the Treasury nevertheless
is making a special effort to inform
the holders of Seemed Liberty Loan
bonds that their bonds will cease to
bear interest on November 18th.
Banks and trust companies through
out the country will be asked to CO.
operate 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 Govern
ment as a means of reaching mil
lions of bondholders. An announce
the larger 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 redemp-
tion or exchange. These records
show that there are still outstanding
at the present time, in the hands of
the public, about $30,0O0,00O in
Government securities upon which
interest has ceased. Included in
i,,
tory notes which ceased to bear in
terest in 1922 and 1928. There are
also outstanding $14,0O0,OO0 in
temporary bonds of the several Lib
erty Loans, to which were attached
only limited number of interest
coupons. The last coupon matured
some seven years ago. The holders
of these temporary bonds have ne
elected to exchange them for perma-
nent 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 is possible to reach
through the press, the radio, and the
banks of the country.
The Second Liberty Loan, which
was issued in November, 1917, was
the second large loan fioated by the
Government during the World War,
and while this loan does not mature
until 1912, the condition of the
money market and of the Govern
ment's finances makes it possible
and advisable to call the bonds for
redemption in November.