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Show I . The New U. S. Bond Iue I) . o THE manner in which investors, large and small, and the citizens generally of the country reiponicd ti th" "f 3 rnvernmeilt bond issue not only offers proof of the continued con-tinued plentifulness of money for investment purposes, pur-poses, but an abiding faith in the ability of the government to repay its obligations when they become due. Although the actual offering was $500,000,-ooo, $500,000,-ooo, which is very small as compared with the fourth Liberty bond issue of more than $6,000,-ooo.ooo, $6,000,-ooo.ooo, the subscriptions have totaled more than J 1,000,000,000. The popularity of the issue, aside from the amount of the oversubscription, is the fact that the subscriptions came from every section of the country and in amounts as low as the smallest bond to be issued J too. There is a possibility that the new bond issue may total $ 1,000,000,000 or more, as the secretary secre-tary of the treasury has expressed a willingness to accept in payment for the new issue either the matured treasury certificates of December 15 or the Victory 4f4s, and which will be redeemable next year , The long term of the new bonds, which are noncallable for twenty-five years and are redeemable in thirty years, renders them most attractive to holders of short-term treasury certifi- cates and of the Victory issues. : That the new Issue carries an interest rate of 4 per cent was something, of a surprise, but belief is entertained that the fraction was added by the treasury department in order to insure a great popular success for the bonds and thereby pave the way for another loan bearing a 4 per cent rate during the early part of the coming year. The new bonds may not be redeemed by" the government prior. to October 15, 1947, or four months after the last of the Liberty bonds ' will have matured and fourteen years after all the Libertys will have been retired, providing the redemption privilege is promptly exercised in each instance. Such an early retirement of the Liberty bonds, however, is not expected, as it will undoubtedly be necessary for the government .to. Issue new series of bonds, but in an ever decreasing amount, to redeem the outstanding issues as they mature, and thus spreading the burden of the cost of the World war oyer an addit'onal number of years. |