Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1898-06-24
BUYING WAR BONDS.
SMALL INVESTORS SUBSCRIBE
10 THE POPULAR LOAN.
Result. Of First Application. Indicate
that sraall Investors Will Take En-
tire Issue of s2OO,OOO,OOO-Regard-
ed az First.class Securities.
Loan Ia n

Loan IL n Success.
The Government has taken every posi-
BILE step to make the new bond issue in
every sense u popular loan. While the
great banking syndicates of this country
and Europe are ready and willing to sub
scribe for the entire bond issue, the Treas
.ury Department has decided that individ-
ual subscriptions will receive attention
first and that the smallest amounts asked
for will be allotted before the larger ones.
This means that any private citizen who
desires to invest II little money in the new
government bonds will he accommodated
before the millionaires and the banking
institutions nay purchase these desirable
securities.
Small investors regard the new bonds
as first-class securities, and unless all
present Indications are misleading the en-
tire issue will be placed before the larger
banking institutions will be permitted to
subscribe. The people want the bonds
and are not n whit backward about asking
for them. The sub-treasury, the banks,
postoffice stations and express Offices in
New York, Chicago, Philadelphia, Bos-
ton, st. Louis. Cincinnati and other large
cities, as well us many Of the smaller
ones, were bcsieged the first day with
requests for information and for the ap-
plication blanks prescribing the form in
which subscriptions must be made. Con-
sentative estimates place the first days
''small subscription" totals at S., 900.
In Chicago the days subscription reach
ed $6S5,S6O. Experts shy more than $1O,-
100000 will be subscribed in small sums
in New York alone.
These bonds bear interest ut 3 per cent,
payable quarterly. The denominations Of
the coupon bonds are $50. 800, $500 and
$1,000; of registered bonds. $50. 500,
$500, $1,000. $1,000 and $4,000. In terms
they are precisely like all other United
States bonds outstanding-thnt is, they
are payable in coin.
Secretary Cages letter of instructions
reveals the precautions taken by the adj
ministration and the Treasury Depart
ment to make this Il popular loan in the
strictest sense-to insure the small invest
ors getting the bonds if they want them.
Until 3 O'Clock p. III. July IA, no subscrip-
ton will be honorcd that calls for more
than $500. All others will be pigeon
hOled. If the subscriptions for $500 or
less exhaust the entire issue of $2OO,OOO.-
600 the others will stay pigeon-holed.
Whatever of the total issue. If any re-
main, will be allotted after July Il, and
again the small banks and the man Of
money. The allotment of what remains
will commence with the smallest subscrib-
cr-that is, the man who wants 5000 or
$1,000 worth of bonds will have his appli-
cation honorcd before that of the man
who asks for $1,000 OF $4,000, and so on.
1t is therefore practically impossible for
the banks and wealthy men who would
bid for blocks of 100000 or 81, OOO,O 600
to get any of these bonds if the people
of modest e take advantage of this
month of time. Marshaling of ''dummies''
by the banks, which some have appeared
to fear. is out of the question, since two
dummies" would he needed for every ST.
NW of bonds, and to get n block of $780,
QUO the bond seekers would need q whole
regiment of dummies"
The bonds are all to be sold to the peo-
pie Mt a fixed price or ut par value. This
is another safeguard for the popular fen
ture Of the loan. No fear is entertained
of n too rapid absorption Of the nations
currency by the bond purchasers. 1t is
figured that most of the money to be nut
into bonds will be idle capital. When the
small investors have had their fill, if
there be anything left for the big bidders
and banks. they will be permitted to re-
ceive their allotments in installments of
20 per cent Mt intervals of forty days to
guard against rapid absorption of the cur
rency. II the national banks were able to
get hold of large blocks, there might be
an initiation of the currency by an issue
of national bank notes against the new
bonds, but this is not Il real danger OH ac-
count Of the restrictions against the banks
already noticed.