The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-10-17
BUY LIBERTY BONDS.
Mr.. McLaurin's Advice to The Cotton
Growers.

To the Editor of The News and
Courier: Many seem to regard the
purchase of liberty bond as a con-
tributiOn to the war. 1t is an invest
ment and a wise investment in a cold
blooded money sense. The bonds of
the first liberty loan are selling now
at a small premium. There can be no
no doubt. that by next January when
the entire loan is subscribed, that
these bonds will show the same pre-
miums as the first British bonds is
sued in 1896 at "a per cent. are now
selling at 113. and the wealth and re-
resources of the United States is far
greater than England, therefore these
bonds at per cent. should finally sell
higher than british bonds at "a per
cent. This is the richest nation on
earth, the moment peace is in sight,
these bonds should go higher than 113.
suppose, though, that the war contin-
ues and further bond issues become
necessary, this absolutely insures
these bonds being at a premium be-
cause the government could not sell
q new issue at par. unless previous is
sues were above par. When you buy
a government bond, you buy that
much OF the United States, just as
much as a railroad has back of it the
rolling stock, roadbed and assets of
the railroad. These bonds have behind
them your land. bonds and stocks and
in addition the life of every man in the
nation for their protection. Thev are
good as. long as the United States is
good, and when the United States is
not good, then you and have no fur
ther use for property, except enough
dirt to bury us.
These bonds should be largely sub
scribed to by the cotton planters. The
price of our products depends upon
easy credits and abundant money
No government price has been fixed,
or Is likely to-De fixed, for cotton.
AS long as credits are expanding,
money cheap and easy to get, the
price Of cotton will continue to ad-
vance. have heard bankers argue
that the sale of these bonds will con-
tract credit and tighten money, and
that therefore prices must fall. They
are mistaken. The money is spent at
once for supplies and goes to increase
the volume in circulation and enor-
Imously expand credits. They are paid
for on the instalment plan, and the
first instalment is put back into cir
culation before the second is taken
out. and SO on. THIS is imitation If
YOU choose to so call it, but I think
1t is a perfectly natural result of
the government being compelled by
war demands to convert fixed and
stable assets like land, ETC., into fluid
assets in order to meet extraordinary
expenditure. The immense sums bor-
rowed by the government simply
means that much property turned int
liquid asset so that it can be used.
Of course this means cheap money and
high products. The dollar buys less
and the products bring more. The man
on a salary or fixed income gets poor
er, the man with cotton, corn and
wheat gets richer. 1t works automati-
cally. If the war lasts another year
at the same rate Of expenditure soc
a pound cotton is not only possible.
but probable. If the surplus money
from the present crop were put into
bonds 1t would be the best invest
ment the cotton planters ever made
The more bonds issued the higher
cotton will go.
John L. McIaurin.
Bennettsville, Oct. s.