Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-10-13


w. G. McAdoo of Egypt, kept the ac-
individual income tax at 20 per cent
Of the gross income for old Aphobis
the shepherd king. At tho close Of
this drive the bonds sold for the war
win have brought in more than six
teen billions of money. and the an
nual interest charges upon them will
be In the neighborhood Of seven hundred
million dollars. The bonds are Of more
than half dozen denominations,
ranging in value from $50 UP to $780,.
900. and their holders are millions.
For the first three loans the indi-
vidual purchases were more than 3D.
100000, and 1t is expected that 25.-
100000 more subscriptions will DO
made during this drive. The total
number Of such transactions inside
tho Treasury and out OF 1t thus num-
Der 100000, and the bonds they
represent are of two kinds.regis-
tered and coupon. They belong TO
four different series and some are ex-
changeable one for the other. Keep
ing track Of these enormous sums
scattered among millions OF individ.
uals Ia a part Of the bookkeeping OK
the liberty loans.
The thought makes ones brain DOH.
in the past year the United States has
become a nation Of bookkeepers. un-
Gle Sam now requires every one OF us
10 put down our receipts and expen-
pitures. and II our income amounts
SaTs Of every cent Of the surplus to
help pay for the war. Each OF US
knows the work ana the strain he
nndergoes in striking his balance
knA you have some idea Of what is
foing on In one little branch OF tho
krsasury Department.
: ~
| / say one little branch Of the Treas
hry. The whole department employed
mose than 5000 clerks at Washing
BON before the war began. II has many
Hines that number today. but the great
Increase has not been In the division
which keeps account Of the bank notes
knd has charge Of paying the principal
ind interest on these government loans
The total number Of clerks IN this
10 ali the work and keep the records
khd accounts right to fraction Of q
cent. This has been possible only by
the introduction Of cost efacfency
Ess spHHs Ind inde9 Fl ga ana ' mailing. :.
Take the registered bonds. They
already number hundreds Of thou.
bands, and the government has 70
bavs q record Of each holder. It must
know his address In order to send
BIN his interest every six months,
Ind to be able to tell At glance
where he is and just how his account
&tands. rhis 10 now dona by an IA.
4sx card system, which gives the full
Registered bondholder has his. index
bard which shows when he bought
bis bonds and II from some other
party than the government, the
hame Of the seller: The history OF
Sued until It is paid can be found
&n these cards.
The system is fool-proof, and It has
REPLACED the old method. Down tn
the vaults Of the Treasury Depart
records Of such accounts Of the past.
They consist of eighty-flve great
5edgers each as big as the top OF q
lea table and as thick as an old
family Bible. They contain the story
bonds have been paid. but 1t would
take lifetime or so to get out the
facts concerning each individual
bond. The story OF each OF the reg
tstered bonds of the liberty loans Is
kept upon a card not half as big as
b sheet of note paper. 1t can be found
In q moment, and all the changes and
items concerning it's owner are kept
up to date. BY the old methods 1t
would take at least 5000 clerks to
keep the books. and the conlplexity
Of the issues would bring about end
less delays and confusion.
But before I go further let me ex-
plain the difference between coupon
bonds and registered bonds, the two
classes into which our government
loans are divided. The bookkeeping
division has to keep track of each
kind. but it is only as to the regis
tered bonds that 1t deals direct with
the individual holder. No record Is
kept here Of the owners Of the
coupon bonds. They are payable to
bearer, and to each Is fastened de-
taohable coupons Of about the size
Of special delivery stamp. repre-
senting the semi-annual interest.
Every six months you clip of one OF
these coupons, and cash IL at the
Treasury Of the United States or at
the banks. Any bank in the country
knows what it is worth, and the
value OF the bonds and coupons Is so
money. Any one can cash or sell
them. and II they should be lost. tho
nnder could turn the bonds into
money at any bank or collect the
coupons when they become due. The
burglar who gets hold OF a lot OF
coupon bonds can use then! as easily
aS 80 many greenbacks or gold
eagles.