Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1918-10-19
SECRETARY McADOO
SENDS MESSAGE
Let Every Bond Buyer Read What
the Secretary OF the Treasury
Says on Marketing Bonds

Says on Marketing Bonds
Various inquiries indicate that
there has been some misapprehension
with regard to the attitude of the
Treasury concerning the market for
and sale of Liberty Bonds. | cannot
believe that this apprehension is wide
spread but in order that the Liberty
Loan workers may be in a position TO
meet this objection when it is raised,
i desire to make the position OF the
Treasury entirely clear The Treas
ury has neither the. power nor the de-
sire to prohibit sales of Liberty Bonds.
The Treasury has at all times urged
and will continue to urge the people
of the United States to subscribe for
Liberty Loan Bonds to the utmost of
the ability and 10 continue to hold
their bonds if they can do so. Both
as a matter of intelligent self-inter-
est. So far as the legal righs is con-
cerned, every man will continue to be
to sell his Bonds, but let no man think
that he has performed his whole duty
when he has made a liberal subscrip-
ton for Liberty Bonds and subse-
quently sold them even at loss if he
has sold them in order to make an
investment which he thinks will pro-
duce a larger income return or give
him the expectation of a speculative
profit, or in order to expend the pro-
L. 81 h
The position of the Treasury con-
corning these matters has at all times
been clear and consistent The fol-
lowing is a quotation from the annual
report of the Secretary of the Treasu-
ry for the year 1917: 1.-The man who
subscribes for Government Bond
and is advertised as a patriot for do
ing so is not a patriot If he immedi-
ately sells that bond on the market
when he does imperatively need the
money. 1t is not mere description
to bond that helps the Government,
it is the actual purchase of the bond
and the keeping of the bonds that
really helps.
The people must have and invest in
Government bonds. 1t is by actually
lending the money to the Government
and not by merely promising it and
shifting the load to some one else
that the citizen really helps in this
great time.
If loans are made to the Govern
ment and bonds are taken therefore
the lender is supposed to deny him
self something which releases in turn
demand on the vital supplies or
stores of the country and puts the
Government in position to buy the
supplies thus released and to furnish
them to our Armies and Navies. But
If the lender Immediately sells his
bonds, relieves himself of the obliga-
ton to have vital supplies, and goes
on wasting them, he does his coun-
try a grievous injury and hurts HIM
self as well.
want to make it clear that there
is no desire on the part of the Gov
eminent to prevent or to interfere
with freedom of legitimate trading in
Government bonds, that is, trading in
good faith"
The following is quoted from the
letter dated September 5, 1918, from
the Secretary of the Treasury to Mr..
Kitchin. Chairman of the Ways and
Means Committee, asking the enact
ment of the last bond bill: 1.-The mag
nificent patriotism of our people and
the fervor and efficiency of the Lib
erty Loan organizations have made
ii possible to place the Liberty bonds
in the hands of many millions of peo-
pie who had never before been inves-
tors in securities of any kind. Bonds
of the Third Liberty Loan received
the widest possible distribution and
feel sure that we all owe duty
to the millions of subscribers of small
means not merely to pay them a fair
rate of interest which we are doing
but to take such measures as may be
necessary to insure to them a market
for the bonds at approximately par
in case their necessities are such as
to force them to realize upon the in
vestment which they have made in
the Governments obligations.
l have been much impressed by the
success of the plan which has been
adopted in Canada for the purpose
of maintaining the market value OF
Canada's Victory Bonds. A careful
study of that plan is being made in
the Treasury and BY the War Finance
Corporation and / am glad TO learn
that the bankers of the country have
been making similar study. am
not without hope that some such plan
may be made effective in the United
Sta .es although conditions here are
very different and it viii not do to
depend too much upon the expert
ence of our neighbor. In any event,
it will not do to proceed in this mat
ter abruptly nor without the creation
of an immense organization country
wide in its ramifcations. To make
such a plan effective. it would be nee
essary to put an end to dealing in
bonds on the exchanges. and accord
ingly to substitute an active and ade-
quate market through the banking
houses of the United States acting