The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-05-18


denominations. This question was
raised the other day in St. Paul Louis
w. Hill, fresh from a conference In
Washington, said that the reason for
this was that if smaller bonds were
issued, the clerical work would be
immense and that at present Wash
ington was short about 100000 clerks
It used to be just the other way when
l" was in Washington.
-. Payable 70 Bearer.
"These coupon bonds are payable
to the bearer, can be transferred and
interest coupons can be presented for
payment at nearest bank or post of.
flee.
'Some banks and other corpora.
tons are planning to divide up the
issues among their employees in small
err amounts than the minimum denom-
iaation of $50. These can be held
in trust for the employees. In this
way each can contribute his mite
toward the great liberty loan.
ITO some 31a per cent interest may
seem low, but this is the highest rate
on bond issues since the Civil war.
The government has provided that
in the future if any bonds are au.
thoriZed at a higher rate, the old
ones can be turned in for the new
ones. England and France in their
first war loans issued at a low rate
of interest. Later the rate was raised,
but those who had come forward at
the low rate were allowed to ex.
change their old bonds for the new
ones.
"The question arose II a bank cap
italiZed at $4,000 bought $4,000
worth of the bonds, whether it would
be an over-loan. Officials of the re-
serve banks held not. A ruling is to
be secured from the state bank ex-
aminers so as to facilitate the par
ticipation of these institutions in the
loan.
Must Underwrite Them.
ut is necessary for the banks to
underwrite these bonds, but it is not
necessary to keep them all. They
should pass them out to their pat
rons. One bank recently bought $780,
900 and in a short time disposed of
$4,000 to patriotic citizens who de-
sired to assist their country in this
fight.
These bonds are the best kind Of
collateral. If our bonds are not good,
gentlemen, then your own property is
worthless. Some bankers are over
cautious. l know that because I am
a banker, but | have reformed. In
case of emergency remember the fed
eral reserve bank is prepared to
stand behind you to the limit. 1t has
only loaned out somewhere between
two or three million of an available
thirty-fiye million, ,,I 1t can secure
money up to one hundred million to
finance the northwest. 9sa
Already l have hadstwo so-called
large subscriptions. The first was
from a German and wAlS for $4,000,
and the second was for $4,000 from
an Irishman., IT. .,~
|7"Put them out among the people of
the state. Every man who holds a
liberty bond becomes better citi-
zen. Stg. ~.
Not 4 Money Maker. ...'
!. 1--WE have heard it said that the
distribution of the liberty loan is a
money making scheme. This is not
true. No commissions are paid for
the salesof these bonds. We don't
want any commission4from Uncle
Sam. We, are patriots in this great
moveme nt. ass .:1'.
1T has been figured that North Da.
kota would do it's share if it sub
scribed between $1,150!O0O and ST.
100000. This is about 10 per cent
of the capital and surplus of our state
and national banks"
Here Mr.. Hanna explained the pay
ments on the bond subscriptions,
which are easy and such as to afford
a wide participation in the loan. Con-
tinuing, he, said:
' Wells County Loyal.
Take Wells county for instance.
Its quota is $4,000. l was informed
while in Minot that the county has
already subscribed $4,000.
1--WE hear the argument that the
money is going out of the state and
will not come back. OF course it will
come back. This money is to be
spent in the United States for sup
plies for our Allies. But if it never
did come back, surely we can afford
to- give money to the government in
her hour of need.
II was misQuoted the other day
when some newspaper said l declared
this war must be financed by bonds
or taxation What l did say was
that this war must be financed both
by bonds and taxation"
War Tax Measures.
Mr.. Hanna then commented briefly
upon the war tax bill before the
house calling for war tax Of some
$2,245, 100000, which with other spe-
cial revenue bills, will bring the tax
up to three billion. By comparison
with the national debt of other ma
tons, the tax load was shown to be
very small in the United States and
exceptionally small when the vast in
come and resources are taken into
consideration. ....
Our national debt now is one bill
ion," resumed Mr.. Hanna. 1--WE hold
three billion in gold and during the
war Europe sent back five billion of
American securities in payment Of