Chapter 176. To supplement the Second Liberty Bond Act, as amended, and for other purposes
1,398 words·~6 min read·
/statutes-at-large/vol-40/chapter-176-4038890·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 176.— An Act To supplement the Second Liberty Bond Act, as amended, and for other purposes. September 24, 1918.[[H. R. 12923](/us/bill/65/hr/12923).][[Public, No. 217](/us/pl/65/217).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That until the expiration of Supplement to Second Liberty Bond Act.*Ante*, p. 288.two years after the date of the termination of the war between the United States and the Imperial German Government, as fixed by proclamation of the President—
(1)The interest on an amount of bonds of the Fourth Liberty Loan Tax exemptions.On interest of not exceeding $30,000 Fourth Liberty Bonds.*Ante*, p. 844.sidenote>the principal of which does not exceed $30,000, owned by any individual, partnership, association, or corporation, shall be exempt from graduated additional income taxes, commonly known as surtaxes, and excess profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of individuals, partnerships, associations, or corporations;
(2)The interest received after January 1, 1918, on an amount of On interest of prior issues not exceeding $45,000.*Ante*, pp. 35, 288, 503.bonds of the First Liberty Loan Converted, dated either November 15, 1917, or May 9, 1918, the Second Liberty Loan, converted and unconverted, and the Third Liberty Loan, the principal of which does not exceed $45,000 in the aggregate, owned by any individual, partnership, association, or corporation, shall be exempt from such taxes: *Provided, however*, That no owner of such bonds shall be entitled to *Proviso*.Subscription to Fourth Loan required.such exemption in respect to the interest on an aggregate principal 966amount of such bonds exceeding one and one-half times the principal amount of bonds of the Fourth Liberty Loan originally subscribed for by such owner and still owned by him at the date of his tax return; and
(3)On Interest of not exceeding 430,000, First Liberty Bonds which may be converted. The interest on an amount of bonds, the principal of which does not exceed $30,000, owned by any individual, partnership, association, or corporation, issued upon conversion of 312 per centum bonds of the First Liberty Loan in the exercise of any privilege arising as a consequence of the issue of bonds of the Fourth Liberty Loan, shall be exempt from such taxes. Additional to prior exemptions.*Ante*, p. 291.The exemptions provided in this section shall be in addition to the exemption provided in section 7 of the Second Liberty Bond Act in respect to the interest on an amount of bonds and certificates, authorized by such Act and amendments thereto, the principal of which does not exceed in the aggregate $5,000, and in addition to all other exemptions provided in the Second Liberty Bond Act. Sec. 2. War saving certificates.Amount increased to $4,000,000,000.*Ante*, p. 291, amended.Limitations modified. That section 6 of the Second Liberty Bond Act is hereby amended by striking out the figures “$2,000,000,000,” and inserting in lieu thereof the figures “$4,000,000,000.” Such section is further amended by striking out the words “The amount of war savings certificates sold to any one person at any one time shall not exceed $100, and it shall not be lawful for any one person at any one time to hold war savings certificates to an aggregate amount exceeding $1,000,” Aggregate allowed to one person of anyseries.and inserting in lieu thereof the words “ It shall not be lawful for any one person at any one time to hold war savings certificates of any one series to an aggregate amount exceeding $1,000.” Sec. 3. Deposit of proceeds.*Ante*, p. 504, amended.War profits taxes added. That the provisions of section S of the Second Liberty Bond Act, as amended by the Third Liberty Bond Act, shall apply to the proceeds arising from the payment of war-profits taxes as well as income and excess profits taxes. Sec. 4. Foreign exchange.Arrangements for foreign currencies and credits to stabilize. That the Secretary of the Treasury may, during the war and for two years after its termination, make arrangements m or with foreign countries to stabilize the foreign exchanges and to obtain foreign currencies and credits in such currencies, and he may use any such credits and foreign currencies for the purpose of stabilizing or Depositaries to be designated.rectifying the foreign exchanges, and he may designate depositaries in foreign countries with which may be deposited as he may determine all or any part of the avails of any foreign credits or foreign currencies. Sec. 5. Trading with the enemy.*Ante*, p. 415, amended.Regulation, etc., of foreign exchange, coin exports, property transfers, etc. That subdivision
(b)of section 5 of the Trading with the Enemy Act be, and hereby is, amended to read as follows: "
(b)That the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or ear markings of gold or silver coin or bullion or currency, transfers of credit in any form (other than credits relating solely to transactions to be executed wholly within the United States), and transfers of evidences of indebtedness or of the ownership of property between the United States and any foreign country, whether United States securities.Regulation of any transactions in, by license or otherwise.enemy, ally of enemy, or otherwise, or between residents of one or more foreign countries, by any person within the United States; and, for the purpose of strengthening, sustaining and broadening the market for bonds and certificates of indebtedness of the United States, of preventing frauds upon the holders thereof, and of protecting such holders, he may investigate and regulate, by moans of licenses or otherwise (until the expiration of two years after the date of the termination of the present war with the Imperial German Government, as fixed by his proclamation), any transactions in such bonds *Proviso*.Cash sales, etc., not affected.or certificates by or between any person or persons: *Provided*, That nothing contained in this subdivision
(b)shall be construed to confer any power to prohibit the purchase or sale for cash, or for notes eligible for discount at any Federal Reserve Bank, of bonds or cer967tificates of indebtedness of the United States; and he may require Compulsory testimony.any person engaged in any transaction referred to in this subdivision to furnish, under oath, complete information relative thereto, including the production of any books of account, contracts, letters or other papers, in connection therewith in the custody or control of such person, either before or after such transaction is completed.” " Sec. 6. That section 5200 of the Revised Statutes, as amended, be, National banks.[R. S., sec. 5200, p. 1005, amended](/us/rs/s5200/p100).Limit of loans to any person, etc.Vol. 34, p. 451, amended.and hereby is, amended to read as follows: " “Sec. 5200. The total liabilities to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed 10 per centum of the amount of the capital stock of such association, actually paid in and unimpaired, and 10 per centum of its unimpaired surplus fund: *Provided, however*, *Proviso*.Commercial discounts not included.That
(1)the discount of bills of exchange drawn in good faith against actually existing values,
(2)the discount of commercial or business paper actually owned by the person, company, corporation, or firm, negotiating the same, and
(3)the purchase or discount of any Nor paper with Liberty bonds, etc., as collateral.note or notes secured by not less than a like face amount of bonds of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as money borrowed Maximum permitted.within the meaning of this section; but the total liabilities to any association, of any person or of any company, corporation, or firm, upon any note or notes purchased or discounted by such association and secured by such bonds or certificates of indebtedness, shall not exceed (except to the extent permitted by rules and regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) 10 per centum of such capital stock and surplus fund of such association,” " Sec. 7. That the short title of this Act shall be “Supplement to Title of this Act.Second Liberty Bond Act.” Approved, September 24, 1918.