Arizona republican., 1917-05-27

William c. McAdOo, secretary Of the treasury. has prepared the follow Ing article in relation 70 the two bil- lion -tol!-r Liberty Loan:
 rhiG var bond issue, which 1 have called the Liberty Loan, is an issue ot United States government bonds, bearing 31a Der cent interest, which a1e to he sold to the people of the United States for the purpose O. rais- ing in part the necessary money to carry on the war with Germany. These bonds will te issued in de- nominations of S50 to $100000 each, with interest payable semi annually, and are exempt from all taxation by federal, state and municipal author lty, except Of course, the inheritance taxes These bonds are seh absolutely safe investment and offer q happy medium through which high and low, ricE and poor, can render indispens- able aid to the government in carry ing on the present war"
 Why the Liberty Loan:'
 Wars cannot he conducted without money, and we not only must finance the needs Of our own government but we must help the allied governments n king common cause with us against Germany and making common cause with us in our effort to establish liberty throughout the world. That is the reason we call it the Liberty Loan. Tie money derived from this loan will ba dedicated to the fight for the establishment of free government among all the peoples Of the earth and tie destruction of the autocratic military system, copSpicuousIy that of Germany. which has always been the most serious menace ta the peace O. the world It Is unquestiOnabiy true th&t the future peace of the world and the security Of liberty throughout {he world rest upon the universal es- tabIishment of the principle that all just government rests upoE the su- prcm1cy O. the democratic principle. Every people must become self-eov- erned We are now engaged in q death struggle between progressive clviliza- tion and the foes of progressive civili- zation. Free and progressive America belongs in a fight of this kind.''
 Distributes Cost of War
 The great Liberty Loan is not gO- ing to bring suffering upon our peo- pie on the contrary, 1t is distribut- ing over q long period di tirle Q par. of the cost Of war, and by that means is justly relieving the present genera UOn ct q part of the burden. These bonds also offer a splendid opportu- nifty for investment of the savings flt the people ol the United States. These savings may be invested in government bonds with absolute se-i curity. The bonds ought to be an in duCensent to every man and woman III the land to save money and make an investment which will not only he secure and return a certain income. bu1 will at the same time be the means of periodically supplying the needs of the government All wars compel sacrifices Our people were never more prosperous and more able 10 make sacrifices, at least the Sacri- fees involved in stopping needless and eXtrav&gant expenditures. We can finance this war out of the savings of he people Of tha United States if they will really economze. That is one thing I should like tG impress. upon the people of the country, the necessity fur econOmy--the prevention of waste"
 Cost of Living Will Fall
 The security of business and the prosperity for the future will be strengthened irnmeasurably # we eco noinize vigorously during this war, and invest our savings i'll war bonds while al the same time paying our just share of essential taxation. If we c0nomiZe all over the land, the cost of liying will be decreased and not increased and we will be in bet ter position to support OUT armies in sha field and our navy urou tke high se5,s. 1t is doubly important that the people of he United States should buy these government bonds out of their own moneys and out ot their own savings
 We must not rely upon the banks alone to buy these bonds There is a limit 10 which banks should put their funds in fixed investments, but there is no limit to which the individual may go in investing his income and savings in safe investments of a fixed character like government bonds Banks must at all times keep their resources reasonably liquid so that they can carry on the essential busi- ness cf the country. Therefor, thG larger the amount of bonds bought by the people themselves, the safer and more prosperoCs we make business in the country and the more useful we make the banks Of the country"
 Taxes Will have Good Effect
 AS to taxation: Of course taxes must be increased, but the very fact that additional tax burdens must be borne will have a wholesome effect upon, the people Taxes will enforce economies and curb waste and ex 7tra vagance. To the extent that the, .3produce ths effect. the burden wi