New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1917-06-08
LIBERTY LOAN
DRAWS INTEREST
FROM JUNE 18TH
1T IS. TIME TO GET YOUR
BOND NOW IF YOU HAVE
NOT. YET DONE s0-FULL
INFORMATION ABOUT THE
BONDS

Tor '. lhc supreme test of tn
Nation has come. We must a
speak, act, and serve together
Woodrow Wilson, President of tn
United States.
They also serve their country
Who buy Liberty Loan Bond.
The French Bond Buyers.
The French people are the great
est investors in Government bond
in the world. At the close of tn
Franco-Prussian War in 1870 Ger
many demanded and collected fror
France $l,OO0000,00O indemnity. Th
French peop'e, who were as loya
then in responding to their coun
tly's need as their soldiers are to
day, hastened to loan this tremen
dous sum to their country.
Their patriotism turned grea
misfortune into great benefit
Thrift in thus saving their none.
and investing it in Government
bonds not only brought great pros
perity to France but the bonds ros'
in value all over the world and mad
the French national credit goot
wherever civilization existed. Tel
years after the bonds were issuet
they commanded a premium of 2!
per cent.
q What the American Nation i.
called upon to do in lending ths
American Government $sO00,O00,0O
and taking its bonds therefor is lit
tie compared with the loan of ST.,
0O0,O0O,OOO to France after the Fran.
co-Prussian War by the French peo.
pie. Called upon to do much less
thar their present allies, the French
and the American people will DEM
onstrate that they are second to nc
people in the world in patriotic sup
poit of their Government.
The Terms Of the Liberty Loan.
The act authorizing the Liberty
Loan Bonds of 1917 was passed April
"a, 1917. 1t provides for the issuance
of $5OOOOO0OO0 of 8 IL per cent
bonds, the interest payable semi
annually on December IS and June
IS of each year. The principal is
repayable on or after the 18th day
Of June. 1882, at the option Of the
Government, and if rhis option is not
exercised the bends will run full 50
years and become due June IS, l947.
The bonds are exempt both as to
principal and interest from all tax
alton, national, State, county, or
municipal, except the inheritance
tax, which is really not a tax on the
property, but on the transfer of pro-
perty by will or inheritance.
The bonds are to be sold At par |;
Ahoe &. ANt1oe Coz do01ae Nea-
r.ium and no discount. They are to
be sold by the Treasurer of the Unit
ed States, post offices and express
companies have been designated as
agents Of the Government to receive
applications for these bonds. 1t is
almost as easy to purchase one of
these bonds as it IS to get q post
office money order.
II is not necessary to pay cash in
full for a bond. One can pay down
2 per cent of the purchase price on
application-that is, 81 for $50
bond, g for a 500 bond, etc-l8 per
cent on July Is, 1917; 20 per cent
July so, iol7; so per cent August Is,
1917; and the balance, 80 per cent,
August 80, 1917.
What . Government Bond 10.
The Government Of the United
States has two methods of raising
One is by taxation. The
other is by the sale of bonds, which
Is a method of borrowing money.
The Government bond is the print
ed promise of the Government to
pay back the borrowed sum of mo-
n axr - . ~aetasn <ss.o anA ~ oa,, ss, l.,
eerest on it at regular intervals until
il Is paid.
The Government borrows money
in this way only after it has been
given the right to do so by act of
Congress approved by the Presid-
ent, and the terms of the loan are
set out Ia the act.
Back of the promise of the Gov
ernment stands the honor Of the
and all its taxing re-
Really the whole wealth of
he nation stands behind this So
lemn promise of the Government to
pay:
This makes q United States Cow !
ernment bond the safest investment
IN the world. If the bond Of the
United States Is not safe, no prop
erty in the United States b safe. II
he United States can not pay its
bonds, Il Is hardly probable that Il
viii be able to protect the citizens
n their other rights.
The Liberty Loan Bonds Of 1917
ire especially attractive invest
nents. Not only have they this ab-
loiute safety characteristics Of an
United States bonds but they are
Ak free not only from al existing
axes but from any war tax that
nay subsequently be levied. No
State, city or county may tax them.
The inheritance tax of the United
states and Of some States may af-
eet them, or rather, affect their trans
er after death of the owner BY will
" BY inheritance.
Another advantage these Liberty
.oan Bonds possess is that IL the
Government issues bonds later on
Turing this war at . higher rate of
interest the holders Of Liberty Loan
3onds will he allowed to exchanGe
{ par their bonds for bonds bearing |,
he higher rate Of interest.
War Leans.
Great Britain's estimated wealth IL
8sMQmM0: she has made three
reat loans since the commence
rent Of the war, aggregating so |
000ooQ0Q Her last loan vas the
Fssse's 49, loan ever f'eased ial