Richmond Palladium (Daily), Volume 42, Number 294, 22 October 1917 — Page 12

THE RICHMOND PALLADIUM AND SUN-TELEGRAM. MONDAY, OCT. 22, 1917.

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Q. What is the Second Liberty Loan of 1917? A. It is a loan of money by the people of the United States to their Government. Q. Why does the United States Government borrow money? A. Because we are forced to defend ourselves against the attacks on American honor and American rights by the German Government, and therefore must have money to equip and maintain our Army and Navy. We need money also in order to lend to those nations with whom we are making common cause in this war. Q. Are not the ordinary receipts of our Government from taxes, etc. sufficient to do this? A. No; the ordinary receipts of the Government are about one and a quarter billion dollars a year, while our expenses of the war for the fiscal year ending July 1, 1918, will be over $10,000,000,000, not including the money which we will lend to our allies. Q. How is the Government going to raise this large amount of money? A. By borrowing from the people and by increasing taxes. WHAT IS A UNITED STATES GOVERNMENT BOND? Q. When I lend my money to the United States Government, what do I get in return? A. You get a promissory note given by the United States Government and bearing interest. This note is called a "bond." Q. What, then, is a United States Government bond? A. It is the direct and unconditional promise of the United States of America to pay upon a certain date a specified sum of money in gold, together with interest at a specific rate, payable at specific dates until the bond matures, or is called for redemption. Q. In what form is this promise? A. It is engraved upon a sheet of distinctive paper used only for the money and securities of the United States, and is executed by the Secretory of the Treasury and by the Registrar of the Treasury and sealed with the Treasury Department seal. Q. When are bonds of the Second Liberty Loan dated ? A. November 15, 1917, is the date they will bear, because that is the date on which they will be issued by the Government arid the date on which interest begins. Q. When will these bonds be paid by the Government; that is, when will they become due? A. November 15, 1942; but the Government has the right to pay them any time after 10 years from date of the bond. Q. Do I have to hold my bond until the date it is. due before I get my money back? A. No ; you can sell your bond any time you desire. There is alwavs a ready market for United States Government Bonds. Q. How can such a sale be made? A. Any bank, trust company, reliable bond dealer, or broker will be glad to sell your bond for you at any time. Tradesmen will accept them as cash on purchases. Q. If necessary, could I borrow money on these bonds? A. Yes, United States Government Bonds are the best security which can be offered in borrowing money. They will obtain for you the best terms possible. Ask any bank if you desire to borrow money on your liberty bonds. Q. Do I get any interest on my money while it is loaned to my Government? A. Yes; the Government will pay you interest at the rate of 4 per cent, a year.

Q. How do I collect the interest?

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uii iiib iiiu'it-M Luupun ui ifuit aai.e ana taKe it to any bank, where it may be cashed or deposited. Q. How often do I get this interest? A Every six months. This interest will be paid to vou every Mav 15 and every November 15 during the life of the bond. Q. Is there any way I can collect my interest without having to cut the coupons? . you can get the Government to give you a "registered" bond ; that is, a bond without any coupon attached and with your name

v. Juni uu . unci. L u:u Illicit?:-) I ; A. Attached to each bond is an engraved sheet of interest coupons for each six months' period. When the interest date arrives, you cut

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written on the bond; and each six months, as the interest falls due, the Treasury Department will send you a check in payment of the interest. WHAT IS THE SECURITY? Q. A United States Government bond is frequently spoken of as "best security in the world." Why, is this true? A. Because the promise to pay Government bond Is backed by the faith and honor of the United States of America and by the taxing power of this whole country, which i3 the richest Nation in the world. Q. Has the United States issued bonds before ; and, if so, has it ever failed to pay all of its bonds when they became due? A. This Government has issued bonds before, and has never failed to pay every bond when it became due with all the interest on same. Even after the Civil War, when the country was suffering from a heavy debt and was not nearly so rich as it is today, all of the Government bonds were paid when they became due. HOW FAR ARE THESE BONDS EXEMPT FROM TAXES? Q. Are Liberty Bonds exempt from taxation? A. The bonds are exempt both as to principal and interest from all taxes imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except: (a) Estate or inheritance taxes. (b) Graduated additional income taxes, commonly known as surtaxes and excess profits -or war-profits taxes now or hereafter imposed by the United States upon the income or profits of corporation, individuals, partnerships, or associations. The interest on an amount of bonds and certificates, not in excess of S5,000 in one ownership, is exempt from the taxes provided for in Clause (b) above. Q. Does this mean that the bonds are free from all local taxation? A. Yes ; the local assessor or tax collector cannot assess these bonds as personal property. THE FIRST LIBERTY LOAN Q. Has our country sold any Liberty Bonds before? A. Yes; 82,000,000,000, bearing 3V per cent, interest, were sold in June, 1917. r Q. Did the people generally subscribe for these bonds? A. Yes; more than 4,000,000 persons bought all of these bonds and offered to buy a billion more than were offered. Q. Suppose the Government offers bonds in the future which will pay a higher rate of interest than 4 per cent? A. If so, the holder of a Liberty Bond will have the right to exchange this bond for one bearing the higher rate of interest. AMOUNT OF PRESENT LOAN. Q. What is the amount of the Second Liberty Loan? A. The Secretary of the Treasury is inviting subscriptions for $3,000,000,000 and reserves the right to allot additional bonds up to onehalf the amount of any oversubscription. Q. II'uv was this bond issue created? A. It was authorized by an act of Congress and approved by the President of the United States. HOW TO BUY. Q. How much do bonds of the Second Liberty Loan cost? A. From $50 to S100,000, whatever their, face value calls for. The law states that these bonds must be sold at not less than "par"; that in, their face value 100 cents on the dollar. Q. How can I buy the bonds of the Second Liberty Loan? A. By filling out an application blank and handing it to any bank or trust company, or any solicitor of Wayne County's Flying Squadron. Q. When can this application for bonds be made? A. At any time from the 1st day of October to the close of business on the 27th day of October, 1917. Q. ... In what form, must applications to buy a Liberty Bond be made? A. All applications must be in the form prescribed by the Secretary of the Treasury, obtainable at any bank or from a Liberty Loan Committee. Q. Must the full price of bonds be paid on application? A. No; only 2 per cent, of the amount you want to buy is required when application is made.

Q. When must the remainder be paid? A. Four plans are offered one as low as $1.00 per week. Q. When will the subscribers know how many bonds they will receive on their subscriptions ? A. The Secretary of the Treasury will announce this about the 6th of November, 1917. This is known as making the "allotment." Q. Must all subscribers to liberty bonds wait until the allotment is made to know whether or not they will receive their bonds? A. No; a subscriber for bonds up to $1,000 is certain to receive his bond. Q. If I desire to pay for the bonds at the time I make my subscription, may I do so? A. Yes; you can pay in full for any bonds you buy up to and including $1,000; but subscribers for more than this amount must wait until the allotment is made. WHAT YOU GET. Q. If I pay in full for a $50, $100, $500, or $1,000 bond, do I receive the bond? A. Yes ; you will receive a bond dated November 15, 1917, and bearing interest from that date. You will receive it, within a short time after your payment has been made. Q. What provision is made for the interest accruing on the bonds from November 15, 1917, to May 15, 1918. a six months' period, when final payment on the bonds is not made until January 15, 1918? A. Interest from November 15, 1917, to date of final or full payment must be made added to the last payment. Credit will be given the subscriber for interest at the same rate upon all the payments. Tables showing the amount of accrued interest payable on January 15, 1918, and on various interest days after payment has been made, will be distributed through the banks by the Treasury Department. Q. As a practical matter, will I have any difficulty in attending to these details? A. None at all. Any bank, trust company, bond house, or broker will gladly give you full instructions at any time without charge. HOW WOMEN MAY AID.

Q. How may women aid the Liberty Loan . A. First: By the purchase of Liberty Bonds

to sell Liberty Bonds to others. Q. Can a woman own a Liberty Bond as her personal property ? A. A Liberty Bond is the personal property of the purchaser or of the person to whom the purchaser may sell or assign it. If it is a registered bond, the record of its ownership is a matter of governmental record. A Liberty Bond is therefore the property of the woman v. ho buy? it until she disposes of it. Q. Why should women buy Liberty Bonds? A. Because Liberty Bonds are the method adopted by the Government of the United States to take care of the soldiers, sailors and marines who ae fighting America's war. The success of our men in this war will benefit women no less than men. Women may not fight; but women may aid men in providing the sinews of war for the fighters. To women, even more poignantly than to men, come the words of the Secretary of the Treasury, "Shall we be more tender with our dollars than with the lives of our sons?" Q. What may women's organizations do to promote the Liberty Loan? , . - , . , A. Every organization of women has a f und of some sort which may be used to aid the Liberty Loan. The money of this fund may be invested in Liberty Bonds. There is no better investment for the funds of an institution, a community, or of an organization. Every women's organization in the country should be represented by investment m the Liberty Bonds. ' ' , , ' . . Q. How does the purchase of Liberty Bonds express the patriotism of the American people? A. Every citizen of the United States who buys a Lioerty Bond registers his approval of our defending ourseives against Germany. Every citizen who buys a Liberty Bond testifies to his love of country. Every citizen who buys a Liberty Bond contributes toward victory.

Second: By helping

he First Nation

This

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pace Is Paid Fop By The The Uoion National Bank The Second National Bank

7th and Main

S. E. Cor. 8th and Main

N. W. Cor. 8th and Main

German-American Trust & Savings Co.

The Dickinson Trust Company

9th and Main

N. E. Cor. 8th and Main

So That Everyone Will Realize the Importance of Buying Liberty Bonds at Once