The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1917-06-02

LIBERTY BOND cATEcHlsM
An Explanation in Comprehensive
Form.

A. A bond is an lntereSt-DeaflnB
certificate of debt, at once an acknow-
| ledgment of debt and promise to pay
with interest For the purpose of the
war the United States Government
wishes to borrow large sum of money
from its citizens. To each citizen
who makes a loan of fifty dollars or
more the government will issue bond
promising to pay interest for the use
of the money and to pay the principal
on a certain date. Because the war
is being fought in the cause of liberty,
the bonds are called Liberty Bonds
@. How much does a bond cost?
A. Bonds are issued in four styles,
each style for definite amount
There are bonds at $50 500, $500 and
81, 900. If man or woman can only
invest $50 bond can be had for that
sum. If he can invest a million dol
lars, he can secure one thousand OF
the $1,000 bonds.
c. Is ii wise for a man to invest
in these bonds?
A. The foremost authorities agree
that the bonds constitute a first class
Investment. The money is absolutely
safe, for back Of the bonds is all the
wealth OF the United States. In all
probability the bonds will sell at
premium in short time, especially If
the war ends in two years. That is,
they will sell for more than their face
value.
O. Is the rate of interest good?
A. The rate Of interest, three and
a half per cent is not high, but ii is
satisfactory. 1t must be remembered
that the bonds will not be taxed, so
that the real return is better than
would be the income from an ordinary
taxable bond bearing the same inter
est.
O. Ii should buy a bond for fifty
or q hundred dollars and some time
in the future should need the money,
will not the fact that it is tied up in
bond make it impossible for me TO
get it?
A. Government bonds are always
readily saleable. You would practi-
cally be certain to be able to sell II
for its full value (perhaps an enhanced
value) at any local bank. They VIII
be universally acceptable as security
for loans. You will have no difficulty
in turning your bond into cash at any
time.
@. Is it not probable that the gov
ernment will have to issue more bonds
later on and at higher rate of inter
est!
A. It is possible. But that fact
will not in any manner affect holders
Of Liberty Bonds Their bonds will at
once bear the higher rate of interest.
@. Must ! pay cash in full for LIB
erty Bonds?
A. No. You can pay by install
ments A regular schedule has been
arranged For example: On a 500
Liberty Bond you pay down two dol
lars when YOU sign your application.
On June 2Sth. you pay SIS; on July
goth, you pay $50; on August 18th,
you pay 500 and on August goth, you
pay the remaining 500 For a $50
bond the payments will be 81, SO, $40,
SIS and SIS. Arrangements can also
be made to pay dollar or two week.
Q. How is the interest paid?
A. There are coupons, properly
dated printed on each bond, on each
of which the amount OF interest due
on that date is printed. These cou-
pons are torn off and cashed like
check at the bank
@. Must one have a bank account
in order to cash these interest cou'
pons:
A. No. The banks will always
gladly cash the coupons for any per.
son, whether bank customer or not.
The holder will not need to be identi-
fed. Moreover, almost any merchant
win accept the coupons in payment
for merchandise,
Q. What would happen if should
die before the bonds bought expired?
A. They would become part of your
estate, the property of your lawful
heirs It would be exactly as though
there was so much money in your pos
session at the time of decease.
Q. can get as good return on my
money by putting it in the bank. Why
then should | buy bonds with it?
A. For patriotic reasons. if for no
other In a struggle like this, when
the very life of the nation is at stake,
every man aud woman must do his or
her share. If you cannot enlist and
fight in the trenches, or upon the
ocean, you can sacrifice, save and in
vest your savings so that Uncle Sam
may be able to properly equip the
fighting men.
Q. Where can get application
blanks?
A. From any local bank or from
any member of the Liberty Bond Com