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
