New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-03

The report from Washington fix
ing a definite date for the next Of
fering of Liberty bonds caused re-
newed discussion of the interest rate
It is argued that such large part
of the money available for invest
ment was absorbed by the first In
stalment that more attractive rate
will be required to insure success Of
the Forthcoming issue. This view
finds little support among those who
are best qualified to express an opin-
ion on the subject. The fact Is that,
far from being seriously impaired,
the investment power of the coun-
try was not even strained by the
operation. It is the consensus of
opinion that an overwhelming re-
Spouse will be assured if the cam
paign for the distribution Of the
S2,000,000,000 is efficiently organ
lied and intelligently conducted,
whether the rate be fixed at 81 or
per cent. It is true that 31a per
cent might well be considered low
Il the loan were to be regarded
strictly as a business proposition,
but it isn't. For that matter, there
are many places where the prevail
ing rate of interest is so high that
per cent or Az per cent would be
low in comparison. But, as the
American Bankers Association
points out in the forthcoming issre
Of "The Journal" there are much
more impressive things than that
to be taken into account. It says:
To the man who says he can get 10
per cent for his money, the answer
is that the certainty of his 10 per
cent or any other rate depends en-
tirely on the success Of the govern
ment in securing funds at 32 per
cent or whatever rate Congress sees
fit TO fix. If bonds cannot be sold,
nothing Is secure. This statement is
for general application. Individuals
may say that it does not apply par
ticularly. That is very true. There
are always individuals who will hang
back and hold out for the 10 per cent,
but their safety in this respect lies
in having some one else supply the
funds at the lower rate. There will
always be such persons, just as there
will be dealers in moonshine whls-
kew and ghouls who will follow the
army and rob the dead. Just now the
subject for consideration is the sta
bility and safety of the government
of the United States. 1t doesn't mat
ter that we don't like the war; we
have the war whether we like 1t or
not. There are members Of Congress
who advance the weak plea, in at
tempted explanation of their dila-
toriness, that their constituents do
not approve the war. They may not
approve Of rain, but they make their
homes waterproof and carry um-
brellas. So il doesn't matter whether
we like the war or not. We've got it,
and il is rather necessary that We see
that II doesn't get us.
AS for sales of Liberty bonds or
the Stock Exchange below par, they
should have no effect whatever or
future loans, not even psychology
cal effect. "The Journal" continues
The people are not asked TO in
vest in war loan securities so that
they may be equipped with something
in which they can trade and make or
lose money. They are asked to in
vest that the government may have
the resources with which 10 pay the
cost Of setting the world Alright and
smashing autocracy and securing
J freedom at sea. Presumably the
bonds are designed TO be held until
that end il attained. Their value is
to be determined not by what they
can be sold at now, but what they
will be worth when the safety OF the
world has been restored.
Similarly the security back of the