Salt Lake Tribune | 1917-11-21 | Page 9 | M'adoo Plans Another Issue of Certificates

- iioo puis 1 ANOTHER ISSUE OFCERTIFIGATES Treasury Offering Is Announced An-nounced in Anticipation of Heavy Income Tax Returns. WASHINGTON, Nov. 20. In anticipa-' anticipa-' tion of huge returns next June from income in-come taxes under the war revenue law, Secretary McAdoo tonight announced an issue of 4 per cent treasury certificates of Indebtedness of indefinite amounts, due June 2o, 1918, the final day for payment pay-ment of income taxes. This was the first action taken by the secretary to prepare the way for the Agreat volume of receipts under the war revenue act. and Is in accordance with the policy adopted for Liberty loan financing of issuing treasury certificates in advance of a loan. In this way the redemption of the certificates on June -5 will tend to counteract the big flow of money into the treasury and prevent the unsettling of financial conditions. The seven-months term of the new issue is the longest of any certificates yet put out, mosUothers having been for ninety days. The interest rate is Lhe same as for recent Issues of certificates. The last issue of an indefinite amount was subscribed sub-scribed to the sum of $6S5, 000,000 before being closed. McAdoo's Statement. "As a means of avoiding concentration of tax payments on one date," said Secretary Sec-retary McAdoo's statement, ''the secretary secre-tary of the treasury, through the federal fed-eral reserve banks, will receive subscriptions subscrip-tions at par and accrued interest for a limited amount of treasury certificates of indebtedness, payable June 25, 191S, with interest at the rate of 4 per cent per annum from November SO, 1917. Subscriptions Sub-scriptions will be received at federal reserve re-serve banks. Certificates will be issued in denominations of $.00, $1000, $5000. $10,000 md $100,000. Payment must be made upon allotment, but not before November Novem-ber 30. "Any treasury certificates of indebtedness indebted-ness now outstanding will be accepted in payment at par with adjustment of accrued ac-crued interest. "All allotments will be made in the order that subscriptions are received. The right is reserved to reject any subscription subscrip-tion and to allot less than the amount "f certificates applied for. and to close 'he subscriptions at any time without notice. no-tice. "As authorized by section 10 of the war revenue act approved October 3. 1017, collectors of internal revenue wljl receive certificates of this issue at par and accrued ac-crued interest, under rules and regulations regula-tions to be prescribed by the secretary of the treasury, in payment of income "and excess profit taxes when payable at or before maturity of certificates. These cert i float es will not be accepted in pay-r pay-r ment of or on account of bond subscrip- lions. Exempt From Taxation. "These certificates will be exempt, both fls to principal and interest, from all taxation now or hereafter imposed by the United States, any state or any of the possession of the United States, or by any local taxing authority, except (a) estate or inheritance taxes, and (b graduated additional income taxes, commonly com-monly known as surtaxes, and excess profits and war profits taxes, now or hereafter imposed by the United Slates upon the income or profits of individuals, partnerships, associations or corporations. The interest on an amount of bonds and certificates authorized in said act approved ap-proved September 24, 191 7, the prlcipal of which does not exceed in the aggregate aggre-gate $5000. owned by any individual, partnership, part-nership, associa tion or corporation, shall be exempt from the taxes provided for in clause fh) above. "After allotment and upon payment federal reserve banks will issue interim receipts, pending delivery of definitive v certificates. Qualified depositaries will he permitted to make payment hv credit for certificates allotted to them for themselves them-selves or their customers up to amount, for which each shall have qualified in excess of existing deposits when so noti- tied by federal reserve bank."