The Republican journal. [volume] (Belfast, Me.) 1829-current, 1917-07-05
bUYINC OUR BONDS
Registered and Coupon Securi-
ties of the United States.
HOW THE TWO ISSUES DIFFER.

A REGISTERED Bond Lost or Stolen Is
Still Absolutely Safe For Its Legiti-
mate Owner, While Losing a Coupon
Bond Is Like Losing Money.
When an investor buys United
States bond he buys what Is called
either a registered or coupon secu-
rity. The "bloated" capitalist is usual
ly pictured as occupying much of his
time in cutting coupons" task the
very notion of which intrigues the i'm
agination of the poor chap who writes
about the doings Of multimillionaires
And yet-and though 1t be to destroy
so well accepted a tradition-the fact
Is that the predatory plute'' rarely
clips a coupon. He prefers registered
bonds for the commonplace reason that
they are safer.
The government issues, let us say,
bond bearing coupons. 1t Is forwarded
to John Smith, the purchaser, who
signs a receipt for it. But suppose that
Smith mislays or loses the bond or sup
pose that it is stolen from him, 1t is
just as negotiable as a $500 note and
he is that much money "out.''
But if the bond is registered the case
is quite different Suppose that it is
lost or stolen. The thief or the finder
cannot sell it or collect the interest on
it when interest is due. That bond is
recorded in book in the treasury de-
partment as the property of John
Smith. To him alone can principal or
interest be paid unless he transfers the
bond to somebody else, in which case
the transfer is recorded In the book.
Hence, obviously, 1t is much safer for
any one who subscribes to a govern
ment loan to ask for registered bonds.
He will then have a separate account
kept for him at the treasury, in which
every payment made to him will be
set down. Ii his bonds are mislaid or
lost he need only notify the treasury In
order to be sure that nobody else shall
collect the money to which he is en-
titled. The missing securities will be
replaced when he has fulfilled certain
formalites.
Interest checks for bonds are mailed
quarterly. On being returned through
the banks Cancelled they are not de-
stroyed, but are carefully preserved in
the treasury So excellent is the sys-
TEN adopted that reference can be made
to any such check in case of dispute as
to payment no matter how ancient its
date, at minutes notice. The sigma
ture Of the payee on the back settles
the question. All bonds issued since
1880 are likewise kept in storage Heirs
to estates in litigation sometimes wish
to refer to them.
The patriotic person who decides to
help Uncle Sam by lending him money
may have the additional satisfaction Of
knowing that there Is no security in
the world so absolutely safe as our
government bonds. Nothing short Of the
disruption of this great republic could
cause them to lose even a fraction of
their negotiable value If you have
such a bond you can convert it into
cash offhand at any bank
One can hardly conceive of a more
comfortable form Of wealth than Unit
ed States registered bonds. You have
your name down in the treasury books
with, let US say, the magic figures
100000 attached to it. Every quarter
(if the interest is per cent? you re-
ceive a check for $3.50. Il is enough
to live on, modestly. Hard times may
bother other folks, but they do not dis
turb you. The II. G. Of L. becomes to a
great extent an academic proposition.
Very rich people own the bulk of the
registered bonds, which run up as high
as $4,000 each. A piece of printed
paper two feet long will represent that
sum. 1t is a fortune which may be
folded up and put away in your card
case. You cannot possibly lose it. II
anybody steals it Uncle Sam will re-
place it.
The paper used for bonds is Of spe-
cial and distinctive kind, with two
bands Of red and blue fiber running
through every sheet. 1t Is almost all
linen, but contains some cotton, SO as
not to be too hard. The linen rags used
for "stock" are carefully selected,
cleaned, boiled and pulped-even the
water for the pulp being filtered to in
sure its purity.
Uncle Sam owes lot of money to
holders of bonds long ago called in
people, that is to say. who through
negligence or for other reasons have
never asked for what was due them.
Every now and then some Of these old
bonds turn up; likewise back number
interest checks, which folks have a
way Of boarding. People are constant
ly changing their addresses, and Of
ten it happens that track is lost for
awhile of an individual bondholder.
Under such circumstances the interest
checks are retained by the treasury,
and in the course of time they pile up.
They are kept for an indefinite period
and, like the unpaid bonds, are good
forever-Philadelph Ledger.