Internal War Loans Belligerent Countries

of previous war loans and Treasury Certificates of the First,
Second, Fourth and Fifth War Loans for 4^2% Treasury-
Certificates of this loan. However, such subscribers could
only exchange bonds and certificates of previous war loans
to a nominal amount not exceeding twice the amount of
their cash subscription to Treasury Certificates of this loan.
Those exchanging bonds and certificates were obliged to
present them not later than June 29, 1918 and received
upon request Temporary Certificates. Five per cent bonds
of all previous war loans were exchangeable par for par
for Treasury Certificates of this loan. Those exchanging
5% Treasury Certificates received two marks per 100 marks
par value. Those exchanging 4j4% Treasury Certificates
of the Fourth and Fifth War Loans paid three marks per
100 marks par value. Bonds and Certificates upon presentation
for exchange were required to have coupon attached
maturing January 2, 1919, and if interest dates were April
1 and October 1, the coupon maturing October 1, 1918. In
the latter case the holder received three months' interest
at the old coupon rate. The exchange becomes effective
July 1, 1918. Owners desiring to exchange registered bonds
were obliged to so advise the Empire Debt Administration
not later than May 6, 1918, and at the time of notification
received, without charge, bonds bearing no coupons, issued
only for this purpose which had to be presented not later
than June 29, 1918.
Four Per Cent Treasury Certificates of 1914, Series 1, for
80,000,000 marks, maturing August I, 1918, were accepted
without coupons in payment of subscriptions at par on or
after March 28, 1918 with a deduction of interest from
date of payment to July 31, 1918. Non-interest bearing
Treasury Certificates were accepted in payment on or after
March 28, 1918, under 5% discount to maturity.
Deposit Privilege—Both bonds and certificates of this and
previous loans could be deposited by subscribers at the
Securities Department of the Reichsbank which would collect
and forward interest to depositors without charge until
October 1, 1919. Such deposits could be withdrawn at
any time without restriction.
Note—"Unkundbar" can be literally translated "unannounceable." This has been
interpreted by the German press to mean that the Government cannot announce any
change in terms to take effect before dates mentioned, nor are the bonds or treasury
certificates redeemable or convertible before such dates. The prospectus of the loan
states that the Government cannot reduce the interest rate on bonds of this loan
without offering redemption at par.
IO8