New-York tribune., 1918-02-18
Billions Of New Money
From Liberty Bonds!
Make Them Legal Tender, Says The
lnfationist Why Save, or Taxi
~.l~&s.-ssSA.Al


lNote.-We print this letter inst no a..
printed Mr.. Thomas ". Lanlont's nm
prorat Of the Var Finance CORPORATION
Editorial comment nil be found in m.
other column Of this pagel
To the Editor of The Tribune
oir: Among the forty-eight states oe tho
Union the credit of the United States ,o,..x,,
''SS'l' should be maintained at par Its credi. e.
day. as represented by the Liberty bond,
,r,g sei:'"g at less than 95 cents on the dolla,
ms depreciation of per cent comes 4ron,
me fact that the Liberty bonds do not nos
sess the function Of legal tender in p.avmen. ~
ueo1s. hatever security there NAV be bac, ot
rns national bank notes is also back Of the
LioerIy ponds, and the few mercantile credi+s
tha1 are back Of the Federal Reserve Rant
hotes arc only small part of all the credits
ana resources Of the United States. which
are back of the Liberty bonds.
lhe money issued by the United State.
government IS its financial medium of ey.
cnange and amounts to about S4S por ner-
son or practically $4,000, 100000 for the
loo'ooo,ooo OF population. This sum has
oeen more than subscribed for the two issues
81 Liberty bonds, and a like sun, and SOW
ny The United States before the war is over
This money, s48 per person. EQUALS ool1,
small fraction of the estimated agcroga+s
wealth of the United States-namely. about
SooooVo,oOo,o0o, or $1,000 per person
me purpose OF the Liberty bonds is TO on
ape the government to get into the nos
session Of this s48 per person Of none
so that it may disburse the same none
10 us people Tor ammunition, arms, cloth
ing, guns, shoes and other articles. How
ever. the people do not concern theselves
as 20 whether they are paid in metallic
money, Treasury certificates or notes. Re-
serve Bank notes or Liberty bonds All
they want is that they receive some inan-
clal medium OF exchange which they NAV
pay out and for it be lawfully entitled to
receive the equivalent of what they gave
They don't need or desire the real monev-
gold; but they do require and demand some
token, issued by the government and hv
II decreed to be payable and receivable for
all debts both public and private The tailor
advertises that he ~ill take a Liberty bona
Tor a suit Of clothes; the land owner offers
a mouse and lot in trade for Liberty bonds
and charitable institutions receive them as
donations. If the bonds were in denomi.
nations of IS and $40 the halter and the
shoe dealer would take them in payment for
their goods, and these small bonds would
give the new Liberty bonds an elasticity and
llquidity which the existing 3,zs and Is do
not possess.
Let the government enact law saving
that the Liberty bonds payable in twenty
I'VE or thirty years may be issued in the
same denominations III which national bank
or Treasury notes are issued e., ia $40
ooo) and that they shall be legal tender
the same as are bank notes. When il NAYS
with Liberty bonds the manufacturers Of
munitions, the millions and millions for tbe
supplies furnished to the government. these
same manufacturers pass the bonds on to
pay their officers, servants and employes
and they in turn use the bonds 10 nav the
grocer and merchant; and in their Journey
good part of the bonds will return to the
government in the shape of income taxes.
and then be ready for cancellation or to
start out again to pay the debts OF the gov
ernment.
-. II these bonds are non-interest bearing
they VIII circulate more easilv. because no
one, when bond is offered, will stop TO
compute the interest to see whether or not
ne IS receiving full value
CHARLES l.. KINGSLEY.
New York, Feb. IA, 1918.