New-York tribune., 1918-09-01
Thinks Paying OFF of
Stamps Would Be a Ma
tional Calamity
Will Get Two Billions
But Says Workers Are Spend
ing on Luxuries as
Never Before

thought it would be national calamity
to pay off all the war savings stamps
when they mature in 1923.
~ think a plan ought to be worked
out whereby the holders of the stamps
would get the option of converting
them into an old age annuity policy"
the president Of the National City Bank
said. "Of course, every one of the 35,-
900, 900 holders Of the stamps should be
able to get their money back in 1928 if
they desire, but the alternative offer
ought to be made so attractive that
they will be willing to continue to prac-
tice thrift all their lives. If the money
is returned the people will fritter it
away. 1t will be like found money to
them, and very likely they will spend it
in frivolous ways.
Great Social Benefits
81 think the government ought to tell
money in stamps and continue to pur-
chase them after the war that they can
set an annuity from their accumulated
savings after they are sixty years old.
sHere is a way by which we could make
the enormous social benefits arising
from campaign of teaching thrift per-
manent.
I'VE could keep up a large part of
the present war savings organization to
explain to the people how they would
profit under the new plan. IF my sug
gestion were adopted it would be a
mistake to resort to the old unimagina-
tive methods of the postal savings plan
We ought to keep up large number of
the booths and have the worth of a So
cial programme of protection against
poverty in old age interpreted from the
street corners.
People are glad to work for the gov
ernment. We have now 100000 licensed
agents for War Savings stamps in add-
tion to the $4,000 postoffices"
Mr.. Vanderlip was asked how he
would work out the annuity plan, which
he described as means of retaining
all the good that is inherent in the
present campaign.
81 would make the : vernment's of
fer very generous. Now people are
lending money to the government with
out thinking of the amount of inter
est" Pointing to his heart, Mr.. Van
derlip said: "They are turning over
funds because of this"
"Thefore after the war the govern
ment could we'll afford in return to pay
at least per cent compound interest
1t is surprising how much money would
accumulate in this way"
How 1t Would Increase
At per cent compound interest S1O0
would grow TO $2l911 in twenty years,
to $324.34 in thirty years, to S48O.1O in
| forty years, and to $710.67 in fifty
years. Multiply this by 35,OOO,OOO or
thereabouts, and you will catch true
impression of the implications of Mr..
Vanderlip's suggestion.
Mr.. Vanderlip added that, in view of
the enormous debt that the United
States will have to liquidate after the
war, it would\be mistake to give up
the plan of regular saving.
The present war savings plan is au-
thorized to run only until the end of
this year. When planned the cam
paign was looked upon as an expert
Ar1r
paign would be held next year, the man
at the head of the war savings armv
said: "That is up to the people. But
in my opinion of course we will. |
cannot see any reason why We should
not"
"ls there any chance of reaching the
$4,000, 100000 goal of this years cam
paign y" was the next query.
Will Reach Goal
IL am young and enthusiastic enough
to think that we SHALL" Mr.. Vanderlip
replied. "When the $4,000. O.000,o 900 limit
was set no one expected that we would
reach it. The demarkation was made
because it was necessary to have some
limit. We have already sold S755. $685.
181 maturity value and $3.50, ,455,211
cash value. Nebraska has made the
best relative record, Wisconsin is sec
ond and Rhode Island third. Indiana
got the largest proportion of war saw
ings pledges, 100000, or SO per cent
of its population"
Mr.. Vanderip was asked whether the
war savings campaign was bringing
about saving of things and of SER
vices.
SIT is very materially" was the un-
hesitating reply. "ln fact, to do so
was the prime object of the campaign,
and it has succeeded in this direction u
Spendthrift Workers
"But as a result is the total con-
sumption of goods and materials now
less than before the war;" he was
asked.
"No. The total consumption seems
to be greater, but to the extent Of
many millions of dollars the war saw.
ings campaign has limited that in.
crease, which is the result Of high
wages. The buyers of luxuries in nor.
NAL times are curbing their consump
] ton and are saving, but the pay en-