New-York tribune., 1918-07-21


The Victory bonds were originally
sold at 500 hat, which is equal to
$98.50 and interest. To-day holders
can dispose of any quantity ut the lat
ter price.
Over $40o, 600, 900 Sold
Subscriptions to the Victory loan
accepted by the government amounted
to over $400,0o0,0OO. This was the
largest loan per capita absorbed as yet
by any of the belligercnts. The largest
issue in Canada previous to that was
for s150,0OO00O, and was absorbed for
in most part by moneyed investors.
The Victory Loan, however, was popu-
lar. more than onetenth of the popula-
tion of the Dominion participating.
At first the government was little
would set in. The campaign had been
g vigorous one, and some people in
anxious, fearing that heavy liquidation
straitened circumstances were m
duced to buy from patriotic motives.
1t was anticipated that some Of these
people would be forced to unload. II
will be recalled that the success at
tanned in launching the loan was due
to the concentrated efforts of bond
dealers and stock brokers of the coun-
try, who organized vast system of
paid statesmen. These statesmen, whose
int OF ~ l. J
as possible, made practice of assur-
ing prospective investors not only of
the gilt-edged security behind the loan
and pointing out the high yield on the
investment, but informed them that
their holdings would be as quickly
realizable as their deposits in the bank.
1t was the original purpose of the
government to list the Victory bonds
on Canadian stock exchanges, but in
view of the assurances to investors,
stated above, the government, bond
dealers and stock brokers felt it in
cumbent upon them to live up to the
promises Of salesmen. Another scheme
was inaugurated, therefore, of an ex-
per1men-al nature. which has proved
to be signal success. The bond deal
ers and stock brokers Of the Dominion.
who were already organized into a
unified body, concentrated their efforts
once more in providing new buyers to
absorb any bonds that would be un
loaded. They continued to circuarize
their clients and use their stats as
Victory bond salesmen. At the same
time they appointed a Victory Loan
Committee, with headquarters in To-
ronto and branches In Winnipeg and
Montreal. The Toronto Headquarters
acted in the capacity Of clearing
house. When the brokerage houses re-
ceived buying orders they submitted
these to the committee. All selling Or
ders were also turned in to the COM
mittee. 1t was an easy matter. there
fore, for the committee to balance buy
ing and selling orders. The brokerage
houses and bond dealers have met with
such success in their selling campaign
during the intervening months since
the Victory loan was issued that there
have been more buying orders than
selling orders on the books of the COM
mittee.
Forced to Increase Price
One result of this state of affairs
was that few weeks ago the Victory
Loan Committee announced that there
after the price Of Victory bonds to
buyers would be increased five-e ghths
Of a point. to se95O with interest. AS
mentioned above, sellers Of bond. had
received 98h, while the price to buy
ers had been 98B, three-eighths Of
one point going to brokers. On the
new price basis. while sellers Of bonds
continue to receive 98ia with interest,
the one point difference goes to brokers
and bond dealers FOR expenses and COM
mission.
Other important advantages have ac-
crued, both by the government and in
vestors as a result of this scheme. Not
only have investors lost nothing through
the liquidation cf holdings, but the way
has been paved for the successful
launching Of the new Victory Loan,
which will be issued this fall. The
will probably aim at $780,
900 000 In respect to popular loan
like the one issued last fall, the vast
Of investors are incapable of
the value Of bonds.
Stability Instills Confidence
Had the issue been listed on the
open market moderate decline in the
price might have started heavy selling,
which would have inevitably sent the
market much lower. Such course
would have initiated against making
.he impending loan an assured sue
cess. As it is the people, having wit
messed the stability of their last se-