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Show SECOND ISSUE OF ' LIBERTY BONDS i i Half Subscriptions in Excess of, Three Billion to Be I Absorbed. i t WASHINGTON. Sept. 28. Secretary ' McAdoo last night announced the de-, talis of the second liberty loan which ! will bo offered to the public October 1. The chief features are: 1 Amount $3,000,000,000 or more, the excess not to exceed one-haJf of the i amount of over-subscrptlon. Term of bonds Maturity twenty-flvo year; redeemable at the option of tho i secretary of tho treasury in ten years. Denominations of bonds $50 and multiples of $50. ) Interest rate Four per cent, pay-1 awe semi-annually on November 15 and May 15. Terms of payment Two per cent upon application, eighteen per cent on November 15; forty por centDocember! 11 and forty per cent January 15, 1918. The privilege of converting bonds of this issuo into bonds of any succeeding suc-ceeding issue bearing a higher interest inter-est rate than four per cent during tho period of the war is extended, and through an arrnngemont under which bonds will be printed with only four coupons Instead of fifty (to be exchanged ex-changed at the end of two years for tho bonds containing the full number of coupons), deliveries will be prompt In this manner tho Issuo of interim certificates will be avoided. Secretary McAdoo's announcement reads as follows: I "With tho annrnvnl nf Min nrnaUnnl I have determined to offer on October 1. 1917, threo billion or more dollars of United States of America four por cent convertible gold bonds, duo on November 15, 1912, and subject to redemption re-demption at the option of tho United States at par and accrued Interest on nnd aftor November 15, 1927. The bonds will bear Interest from November Novem-ber 15 In each year, and the Interest will bo pnyablo on May 15 and November No-vember 15 in each year, "Tho exact nmount of bonds to bo issued under this offering will depend on tho amount of subscriptions recolv-ed. recolv-ed. It is, of course, to bo expected that subscriptions considerably in excess ex-cess of three billion dollsra will be received, re-ceived, nnd In that event tho right is reserved to allot bonds In excess of three billion dollars to the extent of not over ono-half of the sum by which the subscriptions received exceed throe billion dollars. In other words, if subscriptions sub-scriptions to tho extent of five billion dollars are filed, four billion dolara of bonds may be allotted. "Tho bonds will bo offered as before at par and accrued Interest and will be In denominations of fifty dollars and multiples thereof. "The bonds shall bo exempt, both as to principal and Interest, from nil taxation taxa-tion now or hereaftor imposed by tho United States, any Btato or any of the possessions of tho United States, or by any local taxing authority, except (a) estate or Inheritance taxes, and (b) graduated nddlllonal incorao taxos, commonly known ns surtaxes and excess ex-cess profits nnd wnr profits taxes, now or hereafter Imposed by the United States upon tho Income or profits of Individuals, In-dividuals, partnerships, associations or corporations. Tho interest on an amount of bonds and certificates authorized auth-orized by said act, the principal of which does not exceed in tho aggregate aggre-gate $5000, owned by any individual, partnership, association or corporation shall bo exempt from the taxos provided pro-vided for in clause (b) above. "If a subsequent sorios of bonds (not including United States ccrtlfl-L'ate ccrtlfl-L'ate of indebtedness, war saving certificates certi-ficates and other obligations, maturing matur-ing not moro than flvo ycara from the Issue of such obligations, respectively) bearing interest at a higher rate than four per cent per annum shall, under the authority of said act approved on Soptember 21, 1917, or any other act, bo Issued by the United States before the tcnnlnatipn of the war botwoon the United Spates and tho imperial German Ger-man government (the date of such termination ter-mination be fixed by proclamation of the president of tho United States) then the holders of-bonds of tho present pres-ent series shall havo tho privilege at tho option of tho several holders, of converting their bonds, at par, Into bonds bearing such higher rate of Interest In-terest at the issuo price of bonds of such subsequont sories. not loss than par, with an adjustment of accrued Interest. |