The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1918-10-16
BUSINESS ACUMEN
PROMPTS HOLDING
TO LIBERTY BONDS
VALUE AS COLLATERAL Is
GREATER THAN ANY KNOWN
TO FINANCE.
WATCH OUT FOR SHARPERS
Beware OF Men Who Offer "Some-
thing Better" in Exchange,
Financier Advises.

The value as collateral Of United
States Liberty Bonds, according to
the president of one of the largest st.
Louis national banks, is greater than
any evidence of wealth known to fl
nance.
Next to gold coin and specie they
represent the most stable medium Of
exchange within the power of our gov
eminent to issue, and there is nothing
on which banks the world over would
rather lend money.
| This Is pointed out as one of the
numerous material reasons for hold
ing tight to the bonds when once they
are purchased. The patriotic and SEN
timental reasons for not disposing of
them are quite as strong. but the
arguments in that field are less con-
crete and more difficult to present in
language than those dealing with the
Investment.
Never Good Reason to Sell.
There is never good reason for
selling ones Liberty Bonds. The main
cause for doing so in SO per cent of
cases is to get money. 1t is easily
possible to get the money and still
retain title to your bonds, as any
bank in your city will lend you close
to their market value, and for a long
period Of time at inside interest rates.
Then you are still drawing your bond
interest, so that IL you pay the bank
6 per cent your net rate is only ~
per cent with AN per cent bond as
collateral.
Since the first Liberty Bonds
reached the hands of the public they
have been the detectives of an endless
class of sharpers and INSCRIPTIONS
business men who have schemed I'M
tiringly to get the holdings of their
less keen neighbors. These gentlemen
come with propositions "just as safe
end yielding far greater returns"
Against such proposals all holders Of
United States bonds, large and small,
are doubly warned.
There is nothing nearly as safe and
yielding better returns which anyone
would want to dispose Of. Russell
Sage, than whom no financier has
ever had better understanding of
Investments, once remarked that
there was no such thing as a safe 6
per cent investment. He died leaving
Q marketable estate of upward of
e76, 100000, so that his opinion Ia
worth considering.
The per cent or ~ per cent re-
kv.rp Il will
continue to come to you as regularly
as the succession of dawn and dark
ness through your life and the dura-
ton Of the bond. and to your descend
, ants after you. And Just as sure as
the United States government en-
dures you will receive the principal in
full at the expiration of the loan Pc
Rod. 1t is impossible to conceive.
. therefore. Of a more entirely safe and
comfortable investment to hold al
ways than Liberty Bonds.
; A Permanent Investment.
Thus far no one has been able to
come forward with logical argument
against Liberty Bonds as permanent
Investment. The only circumstance
presenting the semblance Of sound
ness Is that Of the persons who point
out the small interest return, In view
of income on other investments of a
standard variety. Changing condi-
tons. however, rapidly demolish and
; upset standards, and with a return to
normal times and plentiful money the
~ per cent rate will be considered
large.
II takes no effort of memory to re-
call the time when banks were loaning
vast sums ut 4 per cent, and even a
shade under that figure. Then mu-
picipal bonds bearing 4 per cent we're
selling as high as $102 to $106. the
premium bringing the interest basis
we'll under 3H per cent. On basis
Of their market price. railroad stocks
and other standard securities were
} yielding little II any better than 4 to
} 5 per cent.
Government bonds brought enor-
> nous premiums. especially those bear.
!. Ing 8 per cent and better. Certainly
r the credit of the United States gov
D eminent. and the values back o II
now, are immeasurably greater than
!. At any preceding period in our his.
tory, so that II Is safe to predict that
those who hold on to their Liberty
Bonds will in after-war years realize
3 substantial profits on the holdings
! should they feel disposed to sell when
peace has been restored.