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the right to accept any over-subscriptions. The loan was offered to the public on April 6 1918, the first anniversary of the declaration of war by the United States, and the campaign closed May 4. These bonds were authorized under the Third Liberty Loan Act of April 4 1918, which made them available for use in the payment of estate and inheritance taxes and authorized the Secretary of the Treasury to purchase each year 5 % of each outstanding issue of Liberty bonds, with the exception of the First. This provision was designed to stabilize the price of Liberty bonds in the market. The amount subscribed and issued was $4,176,516,850.

The Fourth Liberty Loan consisted of 2O-year 4! % bonds, dated Oct. 24 1918, maturing Oct. 15 1938, but redeemable after the end of 15 years. These bonds were not convertible into future issues and the exemptions from taxation were similar to those provided for the Second and Third loans, although it was provided that $30,000 of these bonds were to be exempt from surtaxes for two years after the end of the war, while an original subscriber holding this amount would also be entitled for the same period to an additional exemp- tion as to any previous issue of 4 % and 4 J % bonds to the extent of $45,000. Subscriptions to this issue, for which $6,000,000,000 was asked, began Sept. 28 and ended Oct. 19 1918. The Secretary of the Treasury accepted all over-subscriptions. The total subscription was $6,992,927,100, due to later adjustments the amount actually issued was $6,964,524,650. " The success of this largest of all loans," the Secretary said in his annual report for 1918, " was the greatest financial achievement in all history and a wonderful manifestation of the strength and purpose of the American people." The Fourth Liberty Loan Act of July 9 1918 had increased the authorization for Liberty loans from $12,000,000,000 to $20,000,000,- ooo; it also increased the authorization for the purchase of Allied Government securities from $5,500,000,000 to $7,000,000,000.

The Victory Liberty Loan was an issue of 3- and 4-year interchange- able 3}% and 4}% notes dated May 20 1919 and maturing May 20 1923, but redeemable June 15 and Dec. 15 1922. The 3!% notes were exempt from all except estate and inheritance taxes ; the 4! % notes from all except inheritance taxes, surtaxes and excess-profits taxes. The amount of the issue was $4,500,000,000 and the Secretary of the Treasury, Carter Glass, who had succeeded Mr. McAdoo, announced that over-subscriptions would not be accepted. Sub- scriptions began April 21 and ended May 10 1919. The amount offered was $4,498,312,650 and the subscription $5,249,908,300.

The Victory Liberty Loan Act (March 3 1919) under which the loan was floated, provided certain additional tax exemptions for holders of various issues of Liberty loans. It was calculated that the total possible exemption under these and earlier provisions was $160,000 in Liberty bonds and notes, not including the first 3J% bonds and the 3! % Victory notes which were always exempt.

The following tables show with respect to the five U.S. war loans the quotas, subscriptions and allotments for the twelve Federal Reserve Districts of which the cities named are the Reserve bank- ing centres. For the Third loan certain additional data are given.

First Liberty Loan (191?)

District

Quota

Subscription

Allotment

Boston

$240,000,000

$ 332,447,600

$265,017,900

New York

600,000,000

1,186,788,400

593,987,000

Philadelphia.

140,000,000

232,309,250

164,759,750

Cleveland

180,000,000

286,148,700

201,976,850

Richmond

80,000,000

i9,737,ioo

88,593,650

Atlanta.

60,000,000

57,878,550

46,283,150

Chicago.

260,000,000

357,195,950

272,702,100

St. Louis

80,000,000

86,134,700

65,029,450

Minneapolis.

80,000,000

70,255,500

53,759,250

Kansas City.

100,000,000

91,758,850

62,182,900

Dallas

40,000,000

48,948,350

36,663,550

San Francisco

140,000,000

175,623,900

149,044,450

Total.

$2,000,000,000

$3,035,226,850

$2,000,000,000

More than 4,000,000 persons subscribed to this loan, and 99 % of the subscriptions were from $50 to $10,000. There were 21 subscribers for $5,000,000 and over, aggregating $188,789,900. Second Liberty Loan

District

Quota

Subscription

Allotment

Boston

$300,000,000

$ 476,950,050

$ 407,713,700

New York

900,000,000

1,550,453450

1,151,184,900

Philadelphia.

250,000,000

380,350,250

295,127,000

Cleveland

300,000,000

486,106,800

409,787,200

Richmond

120,000,000

201,212,500

182,581,700

Atlanta.

80,000,000

90,695,750

82,943,050

Chicago.

420,000,000

585,853,350

525,955,600

St. Louis

120,000,000

184,280,750

150,122,200

Minneapolis.

105,000,000

140,932,650

131,972,450

Kansas City.

120,000,000

150,125,750

136,549,500

Dallas

75,000,000

77,899,850

74,567,100

San Francisco

210,000,000

292,671,150

260,261,750

Total.

$3,000,000,000

$4,617,532,300

$3,808,766,150

There were approximately 9,306,000 subscriptions to the Second loan; of this number 99% were for amounts ranging from $50 to $50,000 and aggregating $2,488,469,350.

Third Liberty Loan (iQi8)

District

Quota

Subscription and Allotment

% of Quota

No. of Subscrib- ers

/

/o

of Pop.

Minneapolis

$105,000,000

$ 180,892,100

172-28

1,221,504

23-6

Kansas City

130,000,000

204,092,800

156-99

1,190,193

16-0

St. Louis

130,000,000

199,835,900

I53-72

1,186,377

12-7

Atlanta

90,000,000

137,649,450

I52-94

584,196

5-8

Dallas. .

80,000,000

116,220,650

I45-27

719,210

12-7

Philadelphia

250,000,000

361,963,500

144-79

1,670,229

25-2

Richmond.

130,000,000

186,259,050

143-27

858,358

9-2

Chicago

425,000,000

608,878,600

143-26

3,479,315

24-7

Boston

250,000,000

354,537,250

141-81

1,512,555

22-7

San Francisco

210,000,000

287,975,000

I37-I3

1,402,584

2I-I

Cleveland.

300,000,000

405,051,150

135-02

1,440,681

15-4

New York.

900,000,000

1,115,243,650

123-91

3,043,123

23-2

Treasury

Department

17,917,750

68,490

Total. .

$3,000,000,000

$4,176,516,850

139-21

18,376,815

17-7

It will be noted with respect to this loan that the Treasury De- partment calculated the relative standing of the districts with re- gard to the amounts by which they exceeded their quotas. It should be noted, however, that this rank shifted with various loans; for example the Minneapolis district, which here stands first with a percentage of 172-28, subscribed less than its quota in the First loan, while the New York district's subscription was nearly 200% of its quota in that loan. In the Third loan bonds were allotted to the full extent of the subscriptions.

Fourth Liberty Loan (1918)

District

Quota

Subscription and Allotment

Boston.

$ 500,000,000

$ 632,101,250

New York

1,800,000,000

2,044,901,750

Philadelphia.

500,000,000

598,763,650

Cleveland

600,000,000

701,909,800

Richmond

280,000,000

352,685,200

Atlanta

192,000,000

217,885,200

Chicago

870,000,000

969,209,000

St. Louis

260,000,000

295,34 ,250

Minneapolis

210,000,000

242,046,050

Kansas City

260,000,000

295,951,450

Dallas. _.

126,000,000

145,997,950

San Francisco Other Subscriptions

402,000,000

462,250,000 33-885,550

Total ....

$6,000,000,000

$6,992,927,100

A * J-t- f t TM

i- _. i _ i

. j. . 1, , 1. _ f 11

amount of the subscriptions. The number of subscribers to this loan was 22,777,680.

Victory (Fifth] Liberty Loan (1919)

District

Quota

Subscription

Allotment

Boston

$ 375,ooo,ooo

1 425,159,950

$ 371,910,150

New York. :

i ,350,000,000

1,762,684,900

1,318,041,150

Philadelphia.

375,000,000

422,756,100

376,290,150

Cleveland

450,000,000

496,750,650

443,802,250

Richmond

210,000,000

225,146,850

201,889,300

Atlanta.

144,000,000

143,062,050

133,080,800

Chicago.

652,500,000

772,046,550

694,330,000

St. Louis

195,000,000

210,431,950

201,787,600

Minneapolis.

157,500,000

176,114,850

170,076,650

Kansas City.

195,000,000

197,989,100

192,429,300

Dallas

94,500,000

87,504,250

84,002,500

San Francisco

301,500,000

319,120,800

294,905,050

Other Subscriptions

11,140,308

6,767,800

Total.

$4,500,000,000

$5,249,908,300

$4,498,312,650

The total number of subscribers to this loan was 11,803,895.

In addition to the great war loans, the Treasury Department placed on sale beginning in the autumn of 1917 War Savings Certificate Stamps in two denominations, 25 cents (thrift stamps), and $5 (war savings stamps). The latter were sold at rates beginning at $4.12 each, increasing one cent monthly to $4.23 and matured in 5 years, at the end of which time the Government agreed to redeem them at $5 each, this being equivalent to 4% interest compounded quarterly. The war savings stamps were designed to be attached to a folder called War Savings Certificate, which had spaces for 20 stamps (see SAVINGS MOVEMENT). Treasury Savings Certificates, in de- nominations of $100 and $1,000, were also issued, which increased monthly in value at the same rate as the stamps. Up to June 1919 the net cash receipts from War Savings Certificates amounted to