Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-05-17
LIBERTY LOAN DISCOUNTS

Bonds of the Third Liberty Loan have been selling
in the open market around %. On the face. OF Il this In
dicates a loss OF . per cent to the purchaser Of these Sc
curities. AS a matter Of actual fact 1t is nothing Of the
sort. The indication is not that the bonds are not actually
and intrinsically worth 100 cents on the dollar. or that
there is any qestion Of their redemption by the govern
ment at the exact price paid for thenn, with the interest
contracted for, but merely that there are not at this time
large funds seeking investment at 4 t-2 per cent.
Some seventeen million people have become purchas-
ers of these bonds. With the exception Of d percentage
so small as to be almost negligible. these purchasers have
bought bonds primarily and chiefly because they wished
to aid the government in its prosecution OF the war by
loanng money to it, money which the government needed.
Occasionally the insulting suggestion mas been made that
the purchase Of these bonds was something less than an
act Of patriotism because the buyer was sacrificing moth
ing-he was sure OF getting his money back with interest.
That is a miserable calumny. 1t is true that people have
loaned money in this way who would not. and could not,
have given it outright. But in most cases a very material
and appreciable sacrifice was made. made willingly and
gladly, and made solely for patriotic reasons. People
have bought bonds because OF the nations need who
would not have thought Of doing "a, had that need not
existed. '* ., $~'
1t is entirely beside the mark to say that the purchas-
ers will be the beneficiaries Of this sacrifice because Of
foolish talk to the effect that the person with. IN income
Of $1,000 or 81. 900. or 5000 a year, OF whatever the
income may be, could very we'll spare a few hundreds or
thousands for Liberty bonds. and that one should save a
little Of his income, anyway. Tho value of saving Is great
We have had too little Of it. And one Of the excellent
effects of the Liberty bond sales is bound to be to create
the saving habit where it never existed before, ana to
stimulate it where it has existed. But the assumption
that because in the past people have not been buying
bonds they have not been saving is nonsense. While there
have been much thoughtlessness and much extravaganza
there has also been a great deal Of saving, Of the dis
eliminating, constructive kind. People have been saving
to buy homes, to acquire interest in established lines Of
business, to lay the foundations for new lines Of business,
to protect their families through. the medium Of life, in
surance, and in a score Of other ways, all useful and ben
eficial. To such people the Liberty bond purchase is not
an introduction to the habit Of saving. but an opportunity
to add one more to the many ways Of saving which they
have already employed. - %
Whether the Liberty bond is bought as a first essay
into the field Of thrift or as another step on a road long
familiar. it is in most cases bought with a view to per-
manency. The purchaser does not buy in order that he
will not be able to sell. but he does buy in the hope that
he may not need to sell, at least until the war is over. A
very large number Of people hope and expect to hold their
bonds until maturity. To these the market quotations
have no interest whatever. They have. their bonds. They
know that their investment is secure. And they know that
interest regularly paid. N~r I