The Daily Missoulian., 1917-05-30

M|SSOULA NOT HELPING
NATIONS LIBERTY LOAN
Missoula Banks Report Slow
Response to Appeal of
Uncle Sam.
HALF NOT YET GIVEN
Only $4,000 Of &24o,oo0
Assigned This District
Yet Subscribed.
HALF NOT YET GIVEN

With only a little more than two
weeks left within which to invest in
the Liberty Loan. Missoula has to
date subscribed only $4,000 of the
$4,000 expected from this city. In
quiries concerning the bonds are coming
In more numerously to the city banks,
however. and the smaller Investors are
beginning to put up their bit into the
new government bonds. 40 that al
though most of the locel bankers are
disappointed m the present subscrip-
tion to the loan they feel confident
that with u more general knowledge of
the need of money ny the government
and the advantages Of the bonds as an
investment. p.ssoula will easily take
care Of her share of the issue.
Mass Meeting Monday.
To aid in advertising the bonds the
County Council Of Defense is planning
mass meeting at the Missoula the
ater next Monday night at which
several speakers will explain the
features OF the bonds. A parade for the
same purpose will be held on the
morning of June 5, the day for regis
tration under the draft law.
The council, which was recently
appointed by Governor Stewart, con-
sists of G. II. Mcleod, :. J. Coffee
and J M. Lucy.
Special Inducements Made.
Special Inducements have been made
by the local banks to encourage the
investment in the bonds. To anyone
who Wishes to subscribe for portion
of the loan the banks will lend at 4
per cent interest, four.fifths of the
amount needed to buy bond, holding
it as collateral until the subscriber
has paid in full for it. This he can do
in a series Of monthly or even semi
monthly payments. Thus the man who
has $50 can Immediately subscribe for
500 bond, by borrowing the other
$50 from one of the banks and pay
Ing IL back on the installment plan
while the bond is meanwhile bringing
him interest at three and one-half per
cent. The First National bank has
worked out a method whereby it will
lcnd the investor enough at six per
cent to purchase a $50 bond to be re-
paid in a series of weekly payments
of $3.50 each. None of the banks are
receiving any commission for their
work in handling the bonds.
Bond. Good Investment.
All of the four banks point out the
advantages of the bonds as an invest
ment. Not only are they absolutely
safe. being backed by the taxable
wealth of the United States, but they
will probably go above par as soon as
the war is over, especially if it be a
short n inn IL 10
pointed out in financial circles that
Spanish war bonds rose to 11Oa two
years after the war ended and that the
present issue bears interest at &; rate
fro mone-half of one per cent to one
and one half per cent higher than the
former issues. a point which should
make them especially valuable during
peace times. The First National bank
has converted $4,000 of it's two per
cent government bonds into the new
three and one-half per cent Liberty
Loan.
One of the chief objections brought
against the new bonds by AIissoula
citizens is the fear that later issue
will bear an even higher rate of in
terest. II this should occur, holders of
the present bonds will have the privi-
ledge. expressly provided them in the
announcement of the Liberty Loan
sent out by the treasury department,
Of converting their three and one half
per cent bonds at par into the bonds
bearing IA higher rate of interest. The
bankers also point out that the present
Liberty Loan Is free from all tax
alton, except estate and inheritance
taxes, and they doubt whether this
provision will be included in any later
issues, even though they might bear
higher rates of interest. The tax cX-
emptiOn clause includes the income ia n
and those levied by federal, state and
local authorities.
Many Reasons Given.
Various reasons are given at the
banks for Missollas failure to re-
spond more readily to the Liberty
Loan. Chief among them Is the fact
that Montana people are not OF the in
vcsting class, but. as in most pioneer
states. are borrowers of capital. The
number Of savings depositors in Mis-
soula is smaller proportionately than
in eastern cities. T.. S. Lusk, president
Of the First National bank, points out
He believes that Missoula people lack
the habit of thrift but that when they
are educated to the desirability of tho
bonds, they will readily purchase them
J. II. r. Ryman, cashier of the West
ern Montana National bank holds the
same opinion and adds that this is one
of the first bond issues ever put OF
sale in the city, as most of them are
disposed of in the east in norma
times.
Publicity Badly Done.
Bad handling of the publicity con
cerning the Liberty Loan has hat
much to do with the failure of it's sal'
proceeding up to the first expectation:
OF bankers. is the view held by J. NJ
Keith. president of the Missoula Trus
and Savings bank. Shortly after th'
loan was announced, Secretary Me
Adoo stated that it had been over
subscribed. This kept investors from
attempting to buy the bonds. When i
was found that the loan had reall.
been under subscribed the treasur,
department than announced that i
might be necessary to raise the in