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Show oo VICTORY LOAN TERMS GIVEN Four Billions, 500 Millions in Convertible Notes to Be Mature in Four Notes. WASHINGTON. April 13. Terms of the vi tory loan wer announced toda by Secretary Glaps. They are: Amount $4,500,00, over :ubscrip- I lions to dc rejected. Interest, 4-74 per ent, for partially tax exempt notes, convertible intu ;j per cent notes wholly lax exi inp" Maturity four year.--, with Ibe treat ury reserving the privilege of redeem-ing redeem-ing the notes in three year? The 3', per cent notes to be Ispucd later, also may be converted subsc-1 fluently back into 43i per cent notf-s. The 4"U, per cent Be unties are to he exempt from state and local taxation excepting cMato and inheritance taxes and from normal rates of federal income in-come taxes, the 2i pr ent securitipr-are securitipr-are exempt from all lederal. slate and local taxes except, estate and inherit ance taxes. The size of the loan was much small-BT small-BT than bad been anticipated by most financial observers who looked for an Issue of about ?6, 000, 000,000. Particularly in view of Secretary Glass' past statements that the loan' would be five or six billions. This will be the lost liberty loan. Secretary Glass explained. thdUgb there will be other issues of government govern-ment securities to finance belated war expenses. None of the past issues of liberty bonds are convertible into victory loan notes, and there are no specific provisions provi-sions in the terras of the victors issue serving directly to maintain market prices on past issues In many communities the Belling campaign already has begun actively, without formal acc-ptanee of subscriptions, subscrip-tions, said reports today to the treasury, treas-ury, although the official opening date Is April 21, one week from tomorrow. The drive will continue three weeks, until May 10. "In fixing the terms of the Issue." said Secretary Glass' announcement of the victory loan, "the treasury has been guided largely by the desire to devise a security which will not only prove attractive to the people of the country in the first instance, but the terms of which should insure a good market for the notes after the campaign cam-paign is over and identical prices for ;the two series, and should not affect injuriously the market for the existing exist-ing bonds of the liberty loans. "This will be the last liberty loan. Although as the remaining war bills arc preaontod further borrowing must be done, I anticipate that the requirements require-ments or the government, in excess of the amount of taxes and other In come can in view of the decreasing certificates from time to time as heretofore, here-tofore, which may be ultimately re. funded by the issue of notes or bonds without the aid of another great popular pop-ular campaign such as has characterized character-ized the liberty loans.'' Text of Terms Terms of the loan are as follows: "The Victory liberty loan, which will be offered feu- popular subscription on April 21. will take the form of four and three quarters per cent three-four three-four year convertible gold notes of the United States, exempt from state- ami local taxes, except estate and inhcri tanco taxes, and from normal federal inromr. taxes. Tho notes will b convertible, con-vertible, at the option of the bolder, throughout their life into thrcp and three quarters per cent three tour if convertible gold notes of the United States exempt from all lederal, state and local taxes, except estate and inheritance in-heritance taxes, in like manner the three and thrr-(. quarters per cent aotoc may be convertible into the four "and three quarters per cent note?. the amount of the iopue will hr . ?t niii.rioo which, with the Off erred Instalments of income and profits ta. es payable, in respect to last year's income and profits, during the period covered by the maturity dates of treas-ury treas-ury certificates Of indebtedness now l outstanding, will fully provide, for the retirement of such certificates. The. issue "ill be limited to J4.5im.00''', ) except as it may be necessary to increase in-crease or decrease (he amount to fa-clliiHic fa-clliiHic allotment Over subscription will be rejected and allotments made on a graduated scale similar in Its Erenernl plnn to that adopted in con nectlon ith the first liberty loan. Allotment Al-lotment will be made in full on subscriptions sub-scriptions up tp and including 10',( . "The notes of both series will ho ! dated j-nd bear Interest from May 80, 1919, and will mature on Ma 29, in?:', j Interact Tvjii i,p payable on December 15, 1919, and thereafter seml-annuHly on June 15 and December 15. and at maturity; All or any of the notes may be redeemed before maturity al tho .option of the United States on June if, or December 16, 1922, at par and ac-i ac-i crued interest." Th Inierest rair of 4 3-4 prr re.nt Is the highest borne by any of the war isr.ues. Financial Interests ba-, ba-, uraed a five per cent rate, but Seen lary Ula&s indicated recently that he regnrded ?uch a rale as excessive and speculation as to the rate recently has revolved about I 1-:' per cent. The .; ,: 1 per cni rate of the tax exempt notes, into which I he 4 3-4S are convertible, con-vertible, la 1-4 per cent higher than Hie tax exempt first liberty bondf.j which mature in thirty years. j Tho coming loan i the only loan; since the first on which over sub- scrlpllons have not been accepted in whole or in part. Compared with the 16,993,073,000 subscriptions of the; Ir.uith lo.-m. the nsrcsate nt the vie-, lory issue will be nearly ?2,500,t"t.UU0 less. Alrcad .".:;.'.' """i"" rrriilicotes of indebtedness have been issued, including includ-ing the current Issue, in anticipat iou Ol the Victory liberty loan, but $600.-000,000 $600.-000,000 of these have been railed in I for immediate redemption. There will remain outstanding $200,000,000 moroj Certificates than proceeds of the i tor loan to h niei ironi tax receipts or from proceeds from future issues of, certificates. 1 For some time the treasury had con- 1 lemplaled terms for the victory loan, which would have a direct Influence in keeping up tho market prices of j past issues, but apparently theso plans) were abandoned. Terms of tho victory issue may bej compared with ihe following terms ofl pn-t issues: First loan $2,000,000,000. 3 1-2 per cent tax exempt, maturlt) thirl y yearn, j Second loan $3,00.000,000 offered. $4,617,000,000 subscribed. $3.808.000,000 1 accepted, lour per cent, partially tax exempt, maturity twenty five years. Third loan. $:'.,000. 000,000 offered,! $4,176,000,000 subscribed, and accepted, I 1 l-t per cent, partially tax exempt. maturity ten cars. Fourth loan. 56.000,000.000 offered.! $6,993,000,000 subscribed and accepted.! 4 1-4 per rent, partially lax exempt, with special conditional exemptions for past issues, maturity twenty years. War savings stamps hear the equiv alent of tour per cent interest and mature ma-ture iu five years. |