The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1918-02-07

THE LOGAN RE
has recognized from the first" said
Mr.. Vanderlip recently in discussing
the war savings certificate plan, "the
desire of the people to translate their
patriotism into financial action; and
not the least of the many stupendous
tasks which have devolved upon him
has been that of making 1t possible
for the enormous and splendidly Gag
er army of small savers to come for
ward and do their bit
The bond, with its coupon repre-
senting semi-annual interest Is not
well adapted to being put out in very
small denominations. 1t was in spite
of this fact. rather than because of
the fifty-dollar Liberty Bond was
entirely desirable from an economic
standpoint. that the Secretary made
fifty dollars instead of one hundred
dollars the Liberty Loan minimum.
He wished to recognize the patriot
ism Of the small investor, even at the
cos. of encumbering the Treasury De-
partment and the banks with,a stag
gering amount Of detail work. The
cost to the government Of issuing
small denomination interest bearing
obligations Is very great. A one dol
lar coupon costs as much to print
to pay and to keep track Of In the
government bookkeeping as does the
coupon from thousand dollar bond.
Moreover, the interest return on a
fifty dollar bond. coming as II does
every six months, Is net Of great
moment to the person who receives
1t, and as rule the owner would
much prefer to have the government
retain the semi-annual interest until
1t amounted to more important
sum.
''All these considerations have
been weighed In creating the new
system Of war savings certificates.
They are designed to give every man.
woman and child In the United States
the opportunity to aid the govern
ment In financing the war. The unit
IL five dollars; but instead Of loaning
the government five dollars and get.
ting a semi-annual interest return OF
ten cents a much better plan has
been devised for the small investor
Beginning December 1, 1917. the
government will offer a war savings
certificate stamp. which 1t will sell
In December. and in January. 70!
l$4.12. This obligation is in effect
the governments note for five dol
lars. falling due January /, 1928
land the buyer who. during the com
ling December or January. purchase,
for $4.12 one Of these five dollar wa,
Savings certificates is virtually dis.
counting the governments note fol
five misunderstanding 1t at -four
per cent interest, compounded quar-
terly. In other words. Uncle Sam
says to the citizen: Lend me $4.12
and in return I will give you a stamI
which is my promise to pay. l will
use your $4.12 to prosecute the wal
land ,noot tho ovpanooS ~ uoyar,,
ment. and will pay you four per cen
interest. compounded quarterly. Thu.
when January 1. 1929. rolls round
will hand you back the money 20,
helped me out with. plus the inter
est; SO that--speaking approximate
lily. and ignoring. In our liberal Am
erican way. the few odd cents---fol
every four dollars you lend me now
when l need 1t. III give you bacl
five dollars five years hence.
But. we can imagine the .sitizer
saying to Uncle Sam. don't you wan
me to lend you more than $4.12?
"Of course ! do! says Uncle Sam
I want you to let me have all 20,
can spare throughout the coming
year.
Indeed I will! says the citizen. I
can let you have $4.12 In December
1917: $4.12 more In January, 1918
$4.l2 more In February. and
l mo. says Uncle Sam; $%.l2 is al
right for December and January. blu,
on the first Of every month afte,
January shall have to raise the
Iprice Of the stamps one cent. The,
Twill cost you $4.13 each during Feb
ruary. $4.14 during March. $4.16 In
April, and SO on.
| There's only one question which
troubles me- says the citizen; I d.
not quite like the idea of tying uI