Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1917-10-11
+ibbeyty +ol41n Bonds Good
Investment for Everyone

war successfully are goods, which must
be spared from the general consumption,
and services. which 10 obtain. dispensible
services must be curtailed. III the popula-
tion as q whole does not save in its ex-
penditure 20 a To set free goods and serv-
ices for the needs OF the government and
our allies, nj the same time investing its
~unexpsnded funds in the Liberty Loans, it
will leave no other way open but to fl
nance the war by extreme taxation and
by initiation of currency and credits.
1t would thus become necessary TO ron
script and gather in, not only the possess
sions of the well-to-do, hut alike the saw
ines of those Of moderate means. Infla-
iion would inevitably raise prices and
lcosts against the people: which would
completely u~nsettle economic conditions
and really make the people pay the cost
Of the war greatly in excess Of what it
should be.
Let Us save and invest in Liberty Bonds
and We shall help 10 keep conditions
sound for our own benefit. The true
spirit Of democracy requires that oil forces
pull together in tn seame direction. The
man who unnecessarily draws upon goods
or services which are needed for war work
lacks just as truly in patriotism a. he who
onriches himself on the sufferings Of his
countrymen.
TO PEOPLES ADVANTAGE.
Whatever self RI restraint both the rich as
well as those Of small and moderate in
comes will now impose upon themselves by
curtailing consumption, they will accumu-
late 10 much advantage for the period
after the war, if invested in the most Sc
cure way in Liberty Bonds. Ii We should
not follow this course We could not, taking
the people as a whole, obtain larger guam
titles Of what we might wish Ia obtain.
because the supply il limited, hut we
would have solely to pay more for the
same acquisitions. which would leave ns
both without goods and without money.
The higher rate now offered by the gov
ernment on the new Liberty Bonds. 4 in
stead of J IL per cent, j. a considerable
ln~dueement for people of more moderate
means and incomes. In fact. the clause
Subiecting the 4 per cent bonds to the sur
tax on Incomes begins 10 affect their yield.
a compared with that Of the first 3 l-1
per cent Issue which was fully tax exempt,
only where the income reaches a rather
large amount. On incomes below 500, 900
the ! per cent bond will WELD up to one
half per cent in excess II the 3 IL per
cent bond. But this illustration does not
exhaust the advantages Of the new 4 per
cent issue. Being exempt If the normal
tax Of 4 per cent. it, Weld will work out
10 be- the same a. that ri a 4 is per rent
non-exempt investment. In the case of
corporations which will !. subject 10 the
q per cent corporation tax on incomes, this
WELD will improve Ia 4.4i per cent. Those
who are further subject "a the 2 per cent
state income tax on mercantile and manu-
featuring corporations. will save in all IT
per cent in taxes. bringing the yield Of the
bonds up to i.59 per cent.
Tax Exemption Aids Much.
All this goes to show thar the bonds are
an ideal investment for the people in gen.
eral and Tor corporation reserves-beth
Tor small companies and for large cor
porations; this the more so a. the bonds
will be "a most liquid asset. being not only
really salable al all times, but forming at
the same time a collateral on which money
can be borrowed everywhere and at lower
rate, than upon any other security.
Such opportunities a the new 4 per cent
Liberty Loan offers. both for the exer-
else Of patriotism and good Judgment in
investment Of savings and funds Of every
character. are rare and exceptional in
deed.