The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-06-05
Persons Who Buy These Bits OF Pa
per Are Serving Their Country
In Substantial
Way.
WHAT IT REALLY MEANS
Bonds Are Issued for Certain Period,
Bearing Interest and Backed by
Word of Uncle Sans
Government.

There is not single selfish ele'
ment in the cause we are fighting
for The supreme test OF the
nation has come. We must all speak,
act. and serve together. Woodrow
Wilson, president OF the United
States.
They also serve their country
Who buy a liberty loan bond.
The French people are the greatest
investors in government bonds IN the
world. At the close OF the Franco
Prussian war in 1870 Germany de-
manded and collected from France
81 600, 100000 indemnity. The French
people, who were as loyal then IN re-
spending to their country's need as
their soldiers are today, fastened 10
loan this tremendous sum to their
! country.
lneir patriotism turned a great
misfortune into a great benefit. Their
thrift in thus saving their money ana
investing it in government bonds not
! only brought great prosperity 10
France, but the bonds rose In value
all over the world and made the
French national credit good wherever
civilization existed. Ten years after
the bonds were issued they com
! manded a premium Of 25 percent.
What the American nation is called
upon to do in lending the American
government $5.O0O,000,00O and taking
| its bonds therefor is little compared
with the loan of $1,O00,00O.00O to
| France after the Franco-Prusstan war
by the French people. Called upon
to do much less than their present
allies, the French, the American
| people will demonstrate that they
| are second to no people in the world
| In patriotic support Of their govern
| ment.
The Terms Of the Liberty Loan.
| The act authorizing the liberty loan
/ bonds of 1917 was passed April "a,
1917. It provides for the issuance OF
/ SIS. 900 ,Oe0, 900 Of 81 percent bonds,
| the interest pay1ble 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
| II this option is not exercised the
bonds will run full thirty years and
become due June Is, 1947.
| The bonds are exempt both as to
principal and interest from all taxa
| ton. national, state, county, or NUM-
| cipal. except the inheritance tax,
which is really not tax on the
property, but on the transfer of prop
erty by will or inheritance.
I The bonds are to be sold at par;
that is, dollar for dollar, no premium
and no discount They are to be sold
| by the treasurer of the United States
and by all federal reserve banks. But
all banks, national and state, post
offices, and express companies have
been designated as agents of the gov
/ eminent to receive applications for
these bonds. 1t Is almost as easy to
| purchase one Of these bonds as it is
to get a postofice money order.
It is not necessary to pay cash in
! full for bond. One can pay down
2 percent of the purchase price on
application-that is, 81 for $50
bond, 81 for a 500 bond, etc.-18 per-
cent on July 25, 1917; 20 percent July
30, 1917; 80 percent August Is, 1917;
and the balance, 80 percent, August
80, 1917.
What a Government Bond Is.
The government of the United
States has two methods Of raising
money. One is by taxation. The
other is by the sale Of bonds, which
is method of borrowing money.
| The government bond is the print
| ed promise of the government to pay
! back the borrowed sum of money at
! a certain time, and to pay interest
| on it at regular intervals until 1t Is
repaid.
| 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 president, and the
terms of the loan are set out in the
| act
! Back of the promise Of the govern
ment stands the honor Of the govern
| ment and all its taxing resources.
Really the whole wealth of the nation
| stands behind this solemn promise of
the government to pay.
| This makes a United States gov
eminent bond the safest investment
| in the world. If the bond of the
! United States government is not
| safe no property in the United
States is safe If the United States
can not pay it's bonds, it is hardly
| probable that it will be able to pro-
tect the citizens In their other rights.
The liberty loan bonds of 1917 are
especially attractive investm ents. Not
only have they this absolute safety
characteristic Of all United States
bonds but they are tax free. not only
from all existing taxes but from any
war tax that may subsequently be
/ levied. No state, city. nor county
may tax them. The Inheritance tax
of the United States and of some
states may affect them, or rather.
affect their transfer after death of
the owner by will or by Inheritance.
Another advantage these liberty
loan bonds nossess is that IL the cox,