The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-06-17
BUT FEW WILL BID HERE.
sAVANNAHIANs NOT APT TO APPLY
FOR SMALL LOTS OF BONDS.

! What Local Bankers Have to say
AbOut bonds as Investments for
the PeOpIe-BanIx Directors to
Consider Investing I'm Them.
Some subscriptions have gone from sa-
| vannah to the treasury department at
] Washington for the new issue Of war
bonds. 1t is not believed. though. that
I they are large in number, or that the ag-
/ gregate amount represented by them will
cut very deep hole in the $2O00O0O00
which Is the total par value of the new
issue.
A few anxious investors forwarded sub
! scriptions as soon as the bond announce
ment was made. but as they were not
supplied with the regular official blanks
and used their ordinary business paper
their bids will have no consideration.
Such applications are regarded as irreg-
ular and the announcement is made from
Washington that they will be returned to
their senders with proper blanks to be
filed out and returned.
Yesterday large lots of blanks were re-
ceived here by the Oglethorpe Savings and
Trust Company. and doubtless by other
financial Institutions, with posters an
nouncing that subscriptions to the bond
issue would be received by the banks dis
PLAYING them.
Officials of two or three banks stated
that they would willingly oblge their Gus
TONERS by receiving their subscriptions in
the event that they desired to apply for
bonds. The banks as usual will aid the
government if it desires their assistance
in this way.
Of . y lie, hos
taken any action in regard to subscribing
for the new bonds The directors of all
of them will probably give the matter con-
sideration within the next few days.
Judging from conversations with officers
of some Of the banks yesterday. though,
there is small likelihood of most of the
banks taking any of the bonds. The gen
eral feeling among the bankers seems to
be that they can use their money TO bet
ter advantage than investing it In govern
ment per cent bonds. Tt Is possible that
the National Bank Of Savannah may offer
for $4,000 of the bonds, using them as a
basis for issuing currency It was stated
yesterday that the directors of the bank
would consider the matter from that
STANDPOINT. State banks seem to regard
the buying of the bonds as more favora-
bic to the national banks than to them.
The board of the Merchants National
Bank will doubtless also discuss the mat
ter of Bidding for some of the bonds from
the same standpoint. Vice President
Guckenhemer was inclined to believe
though, that his bank was amply supplied
with government bonds.
The impression among the local bankers
appears to be that the popular loan fea-
ture of the new issue Will not be produc-
tive of any great results in this immediate
section. Money, as a rule, has a better
earning capacity than three per cent. here
abouts. AT the same time the knowledge of
u r. .. ~
ed States bonds and the fact that such
bonds are non-taxable may induce invest
mcnts from persons Of limited means
Men will view The matter of investing
in the new bonds from a personal stand
/ point" said President p. A. Denmark of
| the Citizens Bank 1T will mainly
resolve Itself into question as to
/ whether the investment Is more profitable
than the use of the money In some other
way. Our local savings banks are now
| paying 3la 10 per cent. As a matter of law
/ all deposits In such banks are subject to
! full taxation as monies I'm hand. ! do not
/ mean 10 say though, that such returns are
| made or that the law is enforced In regard
! to them. The new issue of bonds will draw
| 3 per cent. interest the bonds win not be
! subject to taxation OF any character, and
/ 1t Is to be presumed that after a time they
/ will appreciate in value and command
! premium. These are considera-
! tons that may induce in
vestments by people who have
/ some money at their disposal. Under or
! binary conditions, such a bond Is readily
/ sold al its full market value and Is prac-
| tcally as good as cash. In a time of
money strngency. though. to secure cash
! 1t might be necessary to sacrifice their
value There is that difference between
! bonds and money n bank The tendency
! of interest on deposits in savings institu-
lions appears TO be downward here as
ole fhsarn hot 1,e,s 4
| vestments In the bonds they giving an
! absolute per cent. income for a period of
| years, the bonds running for twenty years
subject 10 the governments option to re-
| deem them at any time. Our Georsia 3I5
per cent. bonds are a favorite investment
and command premium. They are large
| ly held 1 believe. by estates, etc The
/ safety and long life of an investment ara
offsets TO comparatively low rate Of in
terest"
Would you recommend the general pub
lie 70 invest small savings in the new
| bonds?"
The public knows the safety of the
| bonds as well as / do. II is aware of the
interest paid and of the probable increase
| in value of The bonds. Any man can read
| lily figure out for himself whether he can
| do better with his savings or not"
Vice President Guckenheimer of the
Merchants National Bank does not look
for any great rush for the new
bonds on the part of Savannahiaus of linn
| tied means for Investment. Neither does
he believe that the financial institutions
| VIII endeavor to secure much, IL any. or
the issue. II appeared TO be his impress
sion that the banks could use money TO
better advantage. If the government were
In stress and appealed TO the banks gem
orally it would be a different matter. There
| is no doubt of the issue being much more
thon subscribed for and the matter Of in
| vesting can be considered from a strictly
! business standpoint without displaying
| any lack of patriotism
President Herman Myers Of the National
| Bank Of Savannah, also does not look for
any especial desire on the part Of the gen
| eral public here to subscribe for small
amounts of the issue The savings banks.
| paying more Interest than the bonds, being
safe custodians of the funds entrusted 10
them and the deposits being within reach
of the depositors any day they may need
! money, offer Inducements that appeal TO
the average man of small savings. The
fact that any amount needed from 81 up.
| can be drawn at any time, is an advantage
that depositors in savings banks appre-
ciate. MIR. Myers said