The daily banner. (Cambridge, Md.) 1897-2008, 1917-10-26
Liberty Loan Lessons

When the books close on the over
subscribtion of the Liberty Loan,
Americans will have the smallest
debt and highest credit OF all peo-
pies in their class. This is so mark
edly true that the effort which has
been needed for the placing OF so
small a loan, speaking comparative
". has been imputed as reproach
TO US. That is unjust for reasons
which ought to be borne in mind by
those who are interpreting our pa
triotism and our views on the war
by our reception of Government
loan. Americans are the worlds
best earners. They are better saw
ers than they are usually credited
with being, but they are about the
worst investors. They have been ac-
customed to waste many millions ev-
cry year inEwildcat adventures, part
ly because their temperament likes
big risks and big profits, and partly
because they never have mad access
to such first-class investments as
other nations offer to their citizens.
If a nation does not issue Govern
ment loans, its citizens can hardly
be blamed for not taking them, or
for being unacquainted with their
superiorityf to other investments.
Among nations, the United States
is distinguished by being the only
one which has largely reduced its
debt. ad which issued its loans in
forms not available for general in
yestment. Our loans have been made
specially attractive for banks as the
basis of currency, and the banks have
Il
bonds. Our investors in bonds gen.
orally are numbered only by thou
sands, anSeiA Government bonds oy
hundreds dnfy, outside or the banks.
Foreig nations start with millions OF
educated investors in Government is
sues, and with a greater volume OF
accumulated investment funds. Their
national debts were known to be ma
tional blessings when they yielded
less than 8 per cent. AT per cent.
and more they seem to be an impos-
sibly beautiful dream. To this was
added the attraction of being weap-
ons against enemies.
Less than a half year has suficeG
to teach us to take two Liberty
Loans, and future loans of the same
sort will benefit by the instruction
which is occasion of wonder for its
success. We still have to expect and
to take during the current financial
year as many more bonds as those
in the first two loans, unless Ger
many sooner collapses. 1t is unlike
ly, but it ought to appeal to those in
vestors who like a long chance. II
! Germany should succumb, nothing is
/ surer than that the flow Of bonds
would cease, while the demand for
! investment would increase. Under
such conditions it is sure that the
! present loans would command a
! premium in short order. On the
! other hand, if more loans should be
| necessary, they would offer greater
! inducements to the investor. That Is
! the invariable course in all coun
| tries. The present issues, therefore
| offer the alternative either Of a pre-
MUM because there would be nc
more bonds or of a higher interest
rate by exchange into later issues
| Liberty Loan conversion signifies nc
sacrifice of security; it means &
higher yield. Otherwise there is al
most the assurance Of a premium or
! the issue price equal to the aggre
/ gate returns from several years in
! terest.
Meanwhile there is hardly any use
! for money which the bonds will moi
serve as well as money. A clearer
case of having your cake and eating
! it could hardly be made out. Ameri
cans are learning that what they are
! doing for the Government they are
/ doing for themselves. They both fl
| their pockets and glow with consci
! Gus virtue by one and the same pro
cess. When the education sink;
down into the generality of us there
| will be subscriptions dwarfing the
| oyersubscription now closing. We
hardly know we are at war yet. Be
! fore we are done the Kaiser viii
know how truly the country's wealth
/ and manhood are behind the Presi
dents pledge to maintain the right
and Congress declaratio OF war
The meaning of the loan is thai
! Americans are not capable OF being
taught to be a subject race.-N. Y
Times.