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FEDERAL RESERVE BANK OF CH ICAGO
G OVERNMENT BOND DEPART MENT
R OOM 3 61-209 SO. LA S A LLE ST.

ADDRESS ALL COMMUNICATIONS
RELATIVE TO GOVERNMENT BONDS

S . B. CRAMER, ASST. CASHIER
0 . A. JONES, ASST, CASHIER

P. 0 , BOX 805

A . H. VOGT, ACTING ASST. CASHIER

Circular No. 96
August 1, 1918

NOTICE TO HOLDERS OF
FIRST AND SECOND LIBERTY LOAN BONDS

CONVERSION PRIVILEGE
Holders of the 41. bonds of the Fjrst Liberty Loan converted
and of the Second Liberty Loan should PROMPTLY avail themselves of the
privilege of converting into 4 1/41. bonds BY PRESENTI1,G THEIR BONDS FORĀ·
CONVERSION THROUGH THE BANKS WHICH HANDLED THE ORIGINAL SUBSCRIPTIONS.
These bonds are not convertible after November 9, 1918 even
if subsequent series of bonds should be offered at a higher rate.
Therefore; the conversion privilege must be exercised, if at all, on
or before November 9, 1918 and fail~re to convert the 41. bonds described abo ve will result in loss to the bondholders of interest at
the rate of 1/41. per annum for the enti r e unexpired term of the bond,
without compensating advantage.
The bond s to be delivered upon this conversion will bear
interest at the rate of 4 1/41. per ann~m from the last interest date
(May 15, 1918 or June 15, 1918). No payment of accrued interest is
required.
Holders of the 3 1/21. bonds of the First Liberty Loan may
convert their bonds into 4 1/41. bonds on or before November 9, 1918
or may convert i nto any subsP.quent series of long term bonds offered
during Lhe continuation of t be war, bea r ing interest ti t a higher rate
than 3 1/21.. (For detail ed explanation see page 6 of Treasury Department Circular No. 114). If the holdAr of 3 1/21. bonds elects to exercise the pr esent conversion privile ge , accrued interest at the rate of
3/41. per annum from June 15, 1918 to the date the bonds are received
at t he Federal Res8rve Bank of Chicago for conversion, must be paid
to the Unit ed St ates. The bonds to be delivere d upon such conversions
will bear interest at the rate of 4 1/ 4% per annum from june 15, 1918.


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FEDERAL RESERVE BANK OF CHICAGO
Fiscal Agent of the United States.