Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-10-23
Why Liberty Loan Rate Wa Reduced.

rf,irp Is a worthwhile accomplish
usrt Americans are learning rapidly
and. in the requirement, are enjoying
tho casting aside OF numberiess in
c"uigenccs that were a part OF the
pyerauc household. hecause-well, be
cause everybody else was doing 1t.
MANY communities are finding their
civic soul" ae 2 pastor has strikingly
Iut IL. We must give, ard subscribe,
ana invest until we enjoy the sensa-
ton - heing an active part of a great
tct..-al whole that is pooling its com
nor Interests for a great cause
We mus, conserve in our home life,
r. our business expenditures, in our
civic affairs. We must work for the
success Of the Liberty Loan for that
means national success in the war,
tho saving Of life among our soldiers,
and 4 doing away with autocratic war
riottcrs. we must provide hospitals
and nurses for our wounded. and we
must-vhy. we must do our part.
When your purchase a Liberty Loan
Bonds you do your country good, you
do the cause Of liberty and justice
over the whole world good. you do
yourself good. you do harm to the enc
niles Of liberty and Justice and civili-
2atlon. and harm to the enemies OF
Your country.
The first issue Of Liberty Loan Bonds
bears 9 I-2 per cent interest and are
exempt from all taxes Of every kind
except estate and inheritance taxes.
Liberty Loan Bonds Of the second is
sue bear 4 per cent interest and have
the same tax exemptions as the first.
except that they are liable to super
income taxes. They are not subject
to the normal income tax. The rea-
IONS for the change Of interest and
taxibiliy are stated by Secretary Nc
Adoo In his speech before the Ameri-
can Bankers' Association as follows:
we IAN not sell bonds in billions on
the basis Of what they may be worth
TO the very rich. They must be Of
fered to all the people alike at one
price and should appeal to all alike
and upon equal terms. The result OF
selling a bond which bears a low rate
OF interest and carries exemption from
graduated and superincome taxes will
he this: The poor and the people OF
modest means will buy them for pa
triotic reasons bu will be unable &c
hold them because the return is toe
email. The tendency will be all the
time for these bonds to be purchased
from them and accumulated by the
very rich without n adequate con-
alteration Of moving them from them
either to the United States or to the
original subscriber. In these circum
stances the value Of the tax exemp'
ton depends not upon the bonds them
selves but upon a wholly ~extraneous
fact-the extent Of the wealth Of the
holder.
The principle is now firmly ground
ID In our national policy that gradu-
ated taxes shall be laid upon wealth in
order that the burden Of taxation may
he equitahlv distributed and made to
hear more heavily upon the rich than
The poor. Government bonds. there
fore should he issued upon a basis
which will he equally Just to the poor
man and the rich man, so that each
may purchase these bonds upon prac-
ticsllv the same interest basis after
allowing for the different scales OF
taxation.
The second issue Of Liberty Loan
Bonds arc offered upon terms fair and
equitable to all alike and will make
the widest possible appeal to all the
people without regard to the extra
neous fact that the purchaser be poor
or rich The Government car not Fl.
nance this war by making an appeal
alone TO the rich. nor to the man o,
moderate means, nor 10 the poor. Its
appeal must he TO ali the people. and
AL OF the people must respond and
hv united efforts sustain the Govern-
mert in its great credit operations"
controller Of the Currency Williams
says
Tho national banks to-day are
stronger cleaner. ard have great
sr resources than ever before: !
know that they are fred with a pa
triotic determination TO do their ut
most urder The leadership OF Secretary
Nctdoo and In cooperation with the
Federal reserve banks and the State
hanks 10 make the Liberty Loan a
great success. They have already beer
and will surely continue to be of in.
.stimable value in securing from in
vestors, large and small. the many
millions OF dollars we must now pro-
vide TO win victory.
Our supply Of sold. the basis OF on,
credit structure, is now not only the
greatest Of n nation on earth. bu,
we have modified an amount OF gold
here which is more than this or any
other nation ever held before. The
Federal reserve banks alone hold ap.
rrcx.mateiy a billion and a hall
dollars.
THE combined Of our ma
.Ionai banks. savings banks. and trust
companies nov exceed the vast sur
~ 81. 900. co., 600 dollars. more thar
twice ss great as the u Of al
our hanks II years g o and approx.
mateiy So. 900. ooo. 900 more thar their
IN the early part OF 1918.
Our forty-two million workers and
wage Farmers will in,rease our nation
81 wealth In 1917 by more than $4,000.
100000. h products Of the farm and
Kindred industries contributing seven.
teen billion to this sum-
asvSvevv de1iar enlisted in Liberty