The labor journal. [volume] (Everett, Wash.) 1909-1976, 1917-06-01
The French Bond Buyers

est investors in government bonds in
the world. At the close of the
Franco-Prussian War in 1870 Ger
many demanded and collected from
France $1,000,000,000 indemnity. The
French people, who were as loyal
then in responding to their country's
need as their soldiers are today,
FASTENED to loan this tremendous
sum to their country.
Their patriotism turned a great
misfortune into great benefit.
Their thrift in thus saving their
money and investing it in govern
ment bonds not only brought great
prosperity to 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 is
sued they commanded premium of
25 per cent.
What the American Nation is
called upon to do in lending the
American government $5,000,000,0
and taking it's bonds therefor is little
compared with the loan of $1,000,-
100000 to France after the Franco
Prussian 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
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 issu-
ance of $5,OOO,OOO,00O of 31a per cent
bonds, the interest payable semi-an-
nually on December Is and June Is
Of each year. The principal is re-
payable on or after the 18th day
Of June, 1882, at the option of the
government, and if this option is
not exercised the bonds will run full
80 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 mu-
nicipal, except the inheritance tax,
which is really not tax on the
property, but on the transfer. of
property by will or inheritance.
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 COM
panies have been designated as
agents of the government to receive
for these bonds. 1t is
almost as easy to purchase one of
these bonds as it is to get a post
office money order.
1t is not necessary to pay cash
Ill IUll loI Dolu' Vic can pay
down 2 per cent of the purchase price
on application-that is, 81 for a
$50 bond, 50 for 500 bond, etc.
is per cent on July 25, 1917; 20
per cent July 80, 1917; 80 per cent
August Is, 1917; and the balance,
80 per cent, August 80, 1917
What Government Bond Is
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 method of borrowing money.
The government bond is the print
ed promise of the government to
pay back the borrowed sum of money
at certain time, and to pay in
terest on it at regular intervals until
it 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 presi-
dent, and the terms of the loan are
set out in the act.
Back of the promise of the gov
eminent stands the honor of the
government and all it's taxing re-
sources. Really the whole wealth
of the nation stands behind this
solemn promise of the government
to pay.
This makes a United State govern
ment 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 its bonds, it is hardly
probable that it will be able to
protect the citizens in their other
rights.
The Liberty Loan Bonds of 1917 |
are especially attractive investments. !
Not only have they this absolute