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the bonds were not made convertible into

later issues. The date of maturity was

fixed at September 15, 1928. The campaign

corresponded with the dark days of the

German drive in Picardy and Flanders

and the result was again a tremendous

success. There were 18,376,815 subscriptions for a total of $4,176,516,850, an

over-subscription of 38.61 per cent.

The Fourth Liberty Loan was floated

in the fall of 1918 in the midst of the Allied

victories. The offering was for $6,000,000,000 of 4-1/4 per cent bonds and the

date of maturity was set at October 15,

1938, but redeemable five years earlier.

The patriotic spirit of the nation was now

fully aroused and there were 22,000,000

subscriptions totaling $6,989,047,000. This

made it the greatest financial operation

of the kind in the world's history. A

feature of this loan was that in order to

stimulate its sale, interest on $30,000 of

these bonds was made exempt from surtaxes, excess profits, and war profit taxes

until two years after the end of the war.

Furthermore, the taxpayer who subscribed

for $30,000 of this issue and still held the

bonds when he made his income tax return

was entitled to a similar exemption upon the

interest on $45,000 of the second and third

loans. Holders of less than $30,000 of the

fourth loan were entitled in like proportion to exemption on earlier bonds.

Soon after the Fourth Liberty Loan

was closed the Teutons sued for peace

but expenses were so enormous that a

fifth loan was necessary. It was called

the Victory Loan. The sum asked for

was $4,500,000,000. The bonds were for

the short term of four years, with the

privilege to pay in three, and the interest

rate was fixed at 4-3/4 per cent. By this

time war enthusiasm had considerably

abated but there were about twelve

million subscriptions for a total of $5,249,908,300. The great success of these loans

was in large measure due to the patriotism

of the people. While it was generally