Evening star., 1927-05-09
SECOND L|BERTYS
CALLED BY MELLON
Interest viii Expire Novem.
Der IS on ST, 700, ,0o0, 900
Bonds Outstanding.

Secretary of the Treasury Mellon TO-
day called the great Second Liberty
Loan to mature next November 10, in.
stead of allowing ii TO run its tuii
course for 25 years from 1917, when
it was issued.
Under provision OF the law authoriz-
ing a call within 10 years, the Secre'
tary ordered interest on all these
bonds to cease on November IS, and
has orga nized a Nationwide campaign
of an unusual nature to bring from
their places Of hiding outstanding
bonds worth nearly $l.700 900, 900.
These include all Second Liberty Loan
! per cent bonds and Second Liberty
Loan convertible Az bonds.
Extensive advertising. post offices,
banks and even the radio will be re.
sorted to in an effort TO bring TO all
holders of this war issue the message
Of the call One of the rea sons for the
special campaign is that the Treasury
has had experience in the past show
ing that many persons fail to cash
their bonds. There novels outstand-
ing in the hands Of the public about
$50. goo. 600 in Government securities
on which interest has ceased.
Exchange Offer Planned.
While the bonds will be paid on No
vember 15,. the Secretary said. in his
formal announcement, it was quite
probable that some time prior to that
date the Treasury will extend to the
holders Of Second Liberty Loan bonds
an opportunity to exchange them for
other Government scurities.
The enormous extent of the Second
Liberty Loan and its wide dissemina-
ton among the American people are
shown by Treasury figures.
OF the original issue of $3,S07. .S65 900,
1t is reported that $3.50. .361 900 have
been redeemed on various accounts
and $1,360,l66, $50 have been refunded
into 31a per cent Treasury notes of
1e3O-32. A balance of $1,697, 1897 ,050
now is outstanding, and called Novem-
ber Is. Originally 14,938.073 bonds
were delivered on full-paid subscrip-
tions, 1891 ,102 bonds have since
been delivered on conversion, ex-
change, etc, against the cancellation
of like par amount of other bonds.
Altogether. 34.739,175 bonds have
been delivered to owners. These bonds
would weigh 222 tons, and If spread
out would cover almost exactly one
square mile of the earth's surface.
Billion in Interest.
During this time 31,114,759 bonds
have been cancelled on all accounts,
leaving now outstanding 3,624,416
bonds. Since 1917 interest aggrega-
ting S1,327 .006,ss5 will have accrued
and become payable on this loan to
May Is, 1927, involving the issue and
payment OF more than 7,750,000 in
terest checks and the payment of
more than 13o 900, 900 interest coupons.
A theoretical saving of $1,O18,402,-
$50 in the interest on Second Libertys
during the additional Is years, when
they would otherwise have carried in.
terest, is figured, but actually many
Of the bonds probably win be ex-
changed for other Government securi-
ties. This will turn the transaction
into a refunding, so that the total
calculated saving cannot be quite ef-
fected. The interest rates on recent
Treasury issues, however, have been
lower than the rates Of either the
or Az per cent bonds called, so some
saving will probably be made in the
future exchanges.
Notice Given Holders.
Secretary Mellon explained that this
calisdoes not mean that the flpnds will
be paid at the present time, but mere.
ly places the holders on notice that
their bonds will be redeemed on No
venber Is and will cease to bear In
terest on that date.
'If holders of Second Liberty Loan
bonds desire to have their bonds re-
deemed" said the Secretary's state
ment, they should present them for
payment any time after October Is
and prior TO November Is, 1927, but
II they desire other Government obli-
cations in place of their Seconds, they
should await further announcement
ana notify their bank to keep them
Informed Of any exchange offering
that may later be made by the
Treasury.
Banks and trust conpani through.
out the country have been asked to
cooperate with the Government in
spreading the news of this call for
redemption and in advising the hold.
ers or bonds that the Treasury NAV
ofter new securities in exchange.
In addition, a placard setting
forth, the call for redemption will be
displayed in every post Office station
and branch, including all contract sta
tions. throughout the United States.
rhe announcement in the form Of
an advertisement will be carried on
Monday, May 8, in every daily paper
printed in the American language
throughout the United States, and in
many of the foreign-language newspa-
pers. This same announcement will
be carried during the week beginning
May in every weekly and semi
weekly newspaper throughout the
United States.
For the first time the radio will
be used by the Treasury Depart.
ment as a means Of reaching mil
lions of bondholders. On Tuesday
next, through the courtesy Of the
National Broadcasting Co.. Assistant
Secretary of the Treasury Dewey will
broadcast the announcement of the
call from Station WEAF and asso.
ciated stations"