The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-10-06
By JAMES b. MORROW.

By JAMES b. MORROW.
Any man, any woman-married or sim
gle, and neither her husband nor her
relatives could touch her investment-or
any child ten years of age, having de-
posted $50 at the nearest post-office, may
become a registered bondholder of the
United States. The annual interest on
such a bond would be 50 cents. A bond
of 800. accordingly, would earn $50.
which Is the equivalent of days work
in plenty of occupations throughout the
United States.
Stating the matter in another way, 800.
in the course of a year, earns day
wages for q $50 man. 1t would require
800 bonds of 500 each-face value, ,0oO
to earn $50 year, or as much as a
man would earn who has steady employ
ment at SIS a week, allowing him half a
month for holidays, illness, and time lost
through other causes.
$50 man, consequently, though he
may often think himself an Insignificant
unit in his community as a whole, rep
resents by his labor a solid cash invest
ment of $4,000 in 211 per cent United
States securities. Grumble as he will,
discount himself as heavily as he pleases.
he is worth that much to those who de-
pend on him for their support The happy
university of such men has made this
country the richest and actually the hap
piest nation in the world The building
associations of America have $500 600
members. whose savings exceed s., 00o, 900, :
900, and whose loans for the getting of
homes of their own reached the sum of
s2s3,0o0,o00 last year. The large projects
and profits of street railroads. 1t should
always be remembered, are bottomed on
f1ve-cent pieces. Chewing gum sold in
penny sticks has turned several human
failures into millionaires.
There are billions Of sound and obtain
able bonds that pay per cent. On the
basis of such bonds. 80 workman could
$4,000. Nevertheless many a man prefers
the low income bonds of the national gov
eminent. He may be of cautious or
skeptical turn of mind. or he may want
to diversity his investments. It Is said
that great bankers and capitalists like
J. Pierpont Morgan and John d. Rookie
Teller are large owners Of the bonds Of
the United States.
How to Join the Capitalists.
The government now gives every one
in the country, women and children who
are ten years old included, the opportunity
of purchasing bonds at the Treasury in
Washington, and joining the capital!stic
class. To qualify for the privilege, how
ever, one must become a depositor Of the
Postal Savings System. which was estab-
lished by law of Congress a year ago
last January.
And the people are buying the bonds, -
Frank H. Hitchcock, the Postmaster Gen
erai and the organizer of the savings
system, said to me. Three offerings have
been made, so far-the first on July /,
1911. when $41 900 of bonds were sold; the
second January l. 1912. when si17.3so of
bonds were sold. and the last on July L.
just past. when 1854. $50 of bonds were
purchased by depositors living in all parts
of the country. Cincinnati led the sub
scription with sf,1a0. The sale to San
Francisco amounted to 81, go. Bonds to
the value of S45,5s0 went to New Eng
land. Applications, each for more than
$1,000 of bonds, were received from 1875
post-offices. The total of the three sales
was s,S14,14o, and poor persons, small saw
ers, were the purchasers in the majority
of cases.
Il said the bonds were sold" Mr.. Hitch
cock continued. Exchanged. however.
would be the right word to use in con-
nection with all of these transactions.
Certificates for deposits made with the
postal savings system were exchanged,
as matter of fact, for the bonds. Any
depositor had the right to surrender his
certificates for bonds and that will be his
privilege twice every year hereafter.
First, you understand, he becomes
government depositor and then a govern
ment bondholder, IL he desires TO enter
into that relation with his country. There
are bonds of $50. $40. $50, $50, $780, and $500
cent interest, payable semi-annually. and
must be redeemed in gold. These bonds,
and it is an important matter. cannot be
taxed by the national government. by any
State, or by any county or municipality.
If They Go Below Par.
Furthermore, they do not add to the
national debt because bonds of other
kinds 10 an equal amount must be called
in and Cancelled. If they should ever go
below par on the general market, the
government will redeem them at their
face. The owners are protected, there
fore. against all contingencies of events
and quotations.
There are coupon bonds and registered
bonds. The former are more convenient
for those persons who do not intend to
keep them for any length of time. The
bonds and the interest coupons are pay
able to the bearer-that is, to any one
having them in his possession-and. con-
sequently, are practically the same as
money and should be kept in a safe place.
The coupons are cashed at post-offices.
Registered bonds are really bonds of
record. The names of the owners are
written into the bonds. the government
keeps an accurate account of them and
checks toimeet the interest are sent by
mail from the Office of the Secretary of
the Treasury, and can be cashed at banks
or post-offices- Such bonds, If stolen,
would not be salable and so they are
usually preferred by persons who regard
their investments as being permanent.
ANY depositor of the postal savings
system who has a certificate for $40 or
the other sums / have mentioned, is en-
titled to buy a bond, but he must apply
for 1t in writing fifteen days before Janu-
receives his mail. / have good reason to
believe that the American people will
purchase several hundred millions of
these postal savings bonds-not rich peo-
pie, but the Industrious and economical
people on whom the country must rely for
a good share Of its virtue, vitality, and
common sense. / believe our deposits
in time will amout to billion dollars.
Italy. a poor country compared with the
United States. has S2900o00 900 in its postal
banks; Russia has s12s, 100000, according
to its latest reports.
About 1900 post-offlces are now re-
ceiving savings deposits" Mr.. Hitchcock
went on to say. Deposits will yet be
made in 81, 900 offices ranging in size from
those in The largest cities to those situat-
ed in small and Isolated villages. The
growth of the system, which was estab-
lished, you must recollect, in a very mod
est way less than two years ago, has been
constant and little short of remarkable.
Banks Now Favor the System.