Evening Republican, Volume 21, Number 37, Rensselaer, Jasper County, 21 February 1918 — New War Bonds Will Bear 4½ Per Cent [ARTICLE]

New War Bonds Will Bear 4½ Per Cent

Washington, Feb. 20.—Future issues of treasury certificates of indebtedness planned in preparation for the third Liberty loan will bear an interest rate of 4% per cent., or one-half per cent, more than issues of the immediate past. This announcement was made tonight by Secretary McAdoo, together with the statement that the $500,000,000 block of certificates closed last week, was subscribed in full only because banks in New York and other big financial centers took more than their share and offset the scanty subscriptions from the rest of the country. About $2,500,000,000 certificates remain to be issued at the higher rate before the third loan campaign, probably in April, and the rate for all will be 4% per cent. This increase in the rate offers indication of the treasury’s perspective on money market conditions which many affect the next Liberty loan. The second Liberty loan issued at 4 per cent., was preceded by several issues of certificates at 3Ms per cent., but this rate was increased to 4 per cent., for the last blocks before the second loan. A similar situation preceded the first Joan, which was at 3% per cent. In both cases the interest rate of the loan was the same as the rate on the last issue of certificates preceding. Announcement of another issue of certificates, part of the $3,000,000,000 certificates program in which banks have been asked to participate by appropriating 1 per cent, of their total resources weekly for purchase of the certificates is expected, within another week. The last block was announced two weeks ago and it was said then that others would be offered every two weeks.