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Show WM IHTEREST BATE EXPECTfflJOR HUN : Bankers Think Next Lib-j Lib-j crty I.Mue Will Be Made . M ore Attractive. l.i'e tlvrc is nothnie resemblinc; ! unaiii'iHtv el expert opinion on the nub-Jjcct. nub-Jjcct. binders uho have been c..-ly ie.en!;tu-d ,),,, t'lor.uioii of the per cent ,( 4 pr c,.t Liberty ; K'.uis K ok for a ,-ent rate on ;ihe i,et !.,. One thine; that can be ! -t.ited with a coiiM leiabie decree of conlidence is that a per cent bend 1 at pa- to be p.-i'd off at maturity at a oreiviiim will not be attempted. That i-ueeestion has come from responsible or.arters, but treasury officials have no thought of .-.'.ei'tin the plan. It has been accepted as almost an inevitable eoucmitaut of a 4 1 . per cent loan ihet t'ue v'eueral bond market will uniereo further readjustment downward. down-ward. This Mew may" be entirely erroneous. er-roneous. With the i 'per cent Liberty bonds under !d the credit of the I'nued ' ijes government is establisiu-.t on a be - per cent basts for a twenty-five-year maturity, while the basis is -boo per c-'nt if the bonds are called at the end of ton years. lu ether words, the bon i market already is a.ijnstel al-mo..t al-mo..t to a 4'-. per cent basis for ;i'v-ern-n.-i-.t ered.it. If there were substantial assurance that the next lean would be i-: per cent and that the pre scat 4s would be convertible into it.' there is no doubt that the 4s would i;;.ve :( Letter account j of -theuisclv es uiarketvv ise. This ruav ep!ni: yesterday's rise in the 4s from f'L70 to i'ri.l'J. 1-ut even if the rate is p., per cent the 4s are convertible into the new issue only in the event I that it runs more than five year-. In j a sense the covercnieut is under a i moral oblpation. if it issues a 4l-j per j cent bond, to ti the maturity so that i the 4s n-.av be converted, ' ertainty. I however, is lackinj:. The maturity of ! r.ir.ety-day leans made to finance sub-i sub-i scripfions to the 4s partly explains re-' re-' cent P'-ess-i-o on this issue, which ! touched 94.70 Thursday. It is easy to believe thst a per 1 cent j.over:r"out bond will have au un-I un-I favorable effect upon the war-savinirs ! certificate campaign unless the ir.ter-; ir.ter-; es; rvtu-u ou the war stamps is iu-: iu-: creased., lu Kn.eland the interest rate ! on the war-savings certificates was I purposely fixed at ! per cent hieher ( than the war bon is. but the rate of interest in-terest on the r-.,','1''',.'--1 issue now beiu- placed in the United States, in a campaign to last throughout WIS, is 4 per cent, or the same as the last Liberty loan and probably less than the I ra-e of t'ue nest one. Boston News i1 : |