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Show LIBERTY LOAN TO BE OFFERED NEXTJDNDAY Four Per Cent Bonds to the Amount of $3,000,000,000, Carrying the Conversion Privilege, to Be Placed. ANNOUNCEMENT IS MADE BY SECRETARY Additional Bonds May Be Issued Not to Exceed One-half One-half of the Amount of Oversubscription. WASHINGTON, Sept. 27. Secretary MeAdoo tonight announced the details of the second Liberty loan, which will be offered of-fered to the public October 1. The chief features are: Amount $3,000,000,000 or more, the excess ex-cess not to exceed one-half of the amount of oversubscription. Term of bonds Maturity twenty-five years; redeemable at the option of the secretary of the treasury In ten years. Denominations of bonds $50 and multiples multi-ples of $50. Interest rate Four per cent, payable semi-annually, on November ID and May 15. Terms of payment Two per cent upon application, 18 per cent November 15, 40 per cent December 14 and 40 per cent January 15, 191S. The privilege of converting bonds of this issue into bonds of any succeeding issue bearing a higher Interest rate than 4 per cent during the period of the war Is extended, ex-tended, and through an arrangernent under which bonds will be printed with only four coupons Instead of fifty (to be exchanged at the end oC two years for the bonds containing the full number of coupons),, deliveries, will be prompt. In this manner the issue of Interim certificates certifi-cates will be avoided. McAdoo's Announcement Secretary McAdoo's announcement reads as follows: With the approval of the president, I have determined to offer on October 1, 1917, three billions or more dollars i of United States of America four per j cent convertible gold bonds, due on November 15, 1942, and subject to re- ! demption at the option of the United ! States at par and accrued Interest on and after November 15, 1927. The bonds will bear interest from November Novem-ber 15, 1917, and the Interest will be payable on May 15 and November 15 in each year. The exact amount of bonds to be issued under this offering will depend on the amount of subscriptions received. re-ceived. It is, of course, to be expected that subscriptions considerably in ex-- ex-- cess of three billion dollars will be received, re-ceived, and in that event the right Is reserved to allot bonds In excess of three billion dollars to the extent of not over one-half of the sum by which the subscriptions received exceed three billion dollars. In other words, if subscriptions to the extent of five billion dollars are filed, four billion dollars of bonds may be allotted. Offered at Par. The bonds will be offered as before be-fore at par and accrued interest and will be in denominations of $5U and multiples thereof. The. oontls shall' be exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any state or any of the possessions of the United Siates. or by any local taxing authority, au-thority, except (a) estate or inheritance inheri-tance taxes, and (b graduated additional ad-ditional income taxes, commonly Known as surtaxes, and excess profits and war profits taxes, now or herp-af herp-af tei imposed by the United States upon the Income or profits of Individuals, In-dividuals, partnerships, appociatlons or corporations. The interest on an amount of bonds and certificates authorized au-thorized by said act, the principal of width does not exceed in the aggregate aggre-gate $-.iHM). owned by any individual, p.M tnei ship, association or corporation, corpora-tion, shall be exempt from the taxs provided for in clause (b) above. Privilege of Converpion. If a sub-sequent series of bonds (not including United Statts certificates certifi-cates of indebtedness. war-saving (oitific:i(es and other obligations, ma-tt'ting ma-tt'ting not moip than five vears from the issue of such obligation. respectively), re-spectively), bearing interest at a r.iel.er rate than 4 per cent pr annum, shall, .under the authority of said net apuroved September 4 1917 or any other act. be issued bv the I mted States hefore t he termination termina-tion of the war between the United States And the Imperial CJeTman gov- ! eminent (the date of termination to ! ho fixed by proclamation of the pres- j hlent of the United Stales), then the ' holder of bonds of the present se- 1 rlfi shall have the privilege, at th- 1 option of the several holders of con- ' verting their bonds, at par. Into bond3 bearing suci higher rate oi' Intere--; ' the issue price of bonds of such fruwauent series, not less than par w ; t jn adjustment of accrued interest. in-terest. Same Form and Terms. Such conversion privilege muM be exercised, if at all. ar any time within with-in the period, niter the public offering offer-ing of bonds of such subsequent series, se-ries, beeitmfr.g at the date of issue of bonds of such subsequent issue ns such d:ite snail be uxd in Vucri public offerin.es. :i nd terminating months Hfter such dute of issue, and under such rules and rptrj'.a t ions as the secretary of the treasury shail have prescribed. The. bonds to" be issued upon such conversion of bonds of the present series shall be suh-staruiallv suh-staruiallv the same in form nrl terms as shall be prescribed by or ! (Continued on page Two.) LIBERTY LOAN TO BE OFFERED Oil MM (Continued frqm Page One.) pursuant to law with respect to the bonds of such subsequent series, not only as to interest rate, but also as to convertibility (if future bonds be issued at a still higher rate of interest), inter-est), or non-convertibility, and as to exemption from taxation, if any, and in all other respects, except that the bonds issued upon such conversion shall have the same dates of maturity of principal, and of interest, and be subject to the same terms of redemption re-demption before maturity, as the bonds converted: and such bonds shall be issued from time to time, if and when, and to the extent that the privileges of conversion- so conferred shall arise and shall be exercised. One Chance Only. If the privilege of 'conversion so conferred shall once arise, and shall not be exercised with respect to any bonds of the present series within the period above prescribed, then such privileges shall terminate as to such bonds and shall not arise again, though thereafter bonds be issued bearing interest at a higher rate or rates than -1 per cent per annum. Subscription for the bonds must reach the treasury department, Washington, Wash-ington, P. C, a federal reserve bank or branch thereof, or some incorporated incor-porated bank or trust company in the United States (not including outlying outly-ing territories and possessions) on or before the close of business October 17, 1 Rl 7. The applications must be accompanied by a payment of 2 per cent of the amount applied for and subsequent installments upon bonds allotted will be due as follows: Eighteen per cent on November 15, 1917. Forty per cent on December 14, 1917. Forty per cent on January lij, On the latter date accrued interest on the deferred installments will also be payable. Only Four' Coupons. T am very glad to be able to announce an-nounce that by authorizing the engraving en-graving of these bonds, with only four coupons attached instead of the full 1 number of fifty coupons, it will be possible to have the actual bonds ready for delivery as soon as full payments are completed, thus avoid-s ing the trouble and delay Incident to the issuance of interim receipts or temporary bonds. On and after November No-vember 15, If' 19, the holders of the bonds will have opportunity to exchange ex-change t'nem for new bonds having attached thereto coupons for the balance bal-ance of the period for which the bonds will run. It is also expected that on or about October 17, 1917. there will be in the hands of the several federal reserve banks a supply of these nevf bonds, ready for immediate delivery to subscribers sub-scribers in amounts not in excess of KHHUj to any one subscriber against payment in full, thereby avoiding in such cases the trouble incident to waiting until after allotment for delivery. de-livery. Plans are also being perfected whereby the banks all over the country coun-try can obtain bonds for the making of prompt delivery against these small subscriptions. As the bonds will bear interest from November 1 5, and as those who pay in full prior to that time will not obtain any interest on their money until that date, this is oi feted as an alternative proposition to those who are anxious to obtain immediat e possession of the bonds for which they subscribe. The reason this offer will bo limited to amounts of not over Sluon to any one subscriber sub-scriber is that all subscriptions in excess ex-cess of this amount will be subject to allotment. The campaign for the sale of these bonds will open Monday, October 1. and close Saturday. October 1 confidently hope thut when the campaign cam-paign is ovfr it will be found that the total number of subscribers is at least tn.Mnu.uOn and that the total subscriptions in excess of -o.(X)i).(jOO.-Oi.Ki. Such a response would be notice to our enemies that tee American people as a whole intend to support wltli all their power their government in the vigorous prosecution of this war and the achievement of an early and lasting peace. |