At a meeting of the undergraduate committee for the purchase of Liberty Bonds last evening, W. G. Taussig '11, outlined the plans for the sale of these bonds to members of the University. Under the arrangements as at present made, the Liberty Bonds are brought within the reach of everyone.
Coupon bonds are issued in denominations as low as $50 and as high as $1000. Registered bonds range from $100 to $100,000. The bonds may be paid for under the following government regulations: 2 percent. with the application, 18 per cent. on June 28, 20 percent. on July 20, 30 percent. on August 15, and 30 percent. and accrued interest on August 30. For a $50 bond it will therefore only be necessary to pay $1 down, $9 in the first instalment, and $10, $15, and $15 in the other three instalments respectively, the last of which is not due till the end of August.
Arrangements With Cambridge Trust Co.
Special arrangements have been made with the Cambridge Trust Company which will make the bonds even more accessible to the undergraduate. By this plan a deposit of $2 must be paid on application or by June 15, and instalments of $2 per week thereafter for 24 weeks, or through November 30. Interest at the rate of at least two percent. will be allowed on the deposits as made, and the bonds will be delivered ex the December 15 coupon.
Maturity of Bonds in 30 Years.
The bonds pay 3 1/2 percent. interest, payable semi-annually June 15 and December 15, and run for 30 years but are redeemable at the option of the government at the end of 15 years. Should bonds of a higher rate of interest be issued prior to the termination of the war with Germany, these 3 1/2 percent. bonds will be convertible into bonds bearing such higher rate. This provision practically protects the holder of these Liberty Bonds against the depreciation of his securities. The bonds are the direct obligation to pay of the United States government whose good faith is pledged to their payment.
Further information in regard to subscribing to the Liberty Loan may be obtained from the committee or at any bank.