New-York tribune., 1918-03-17
All Bond Values Drop During War Time
Ups and Downs Of Government Issues All Countries Follow the
Fmdam Tendency, Historical Sketch Shows

tations exacted by war of all govern.
ment bonds.
In 1918 Japan's sterling per cent
loan of 1899 was quoted at a high
of S3st and a low of TN. In 1914
the range was 1871 @72; in 1916 it was
74@M62, and in 1916 a slight rise
was manifested, the range being 75a
q 67%. Similar fluctuations were man.
ifested by other japanese government
bond issues.
Various issues Of United States GOV.
ernment bonds showed similar fuetu.
atlons during the Civil War. The
United States 6s of 1868 were quoted
at a high in 1860 of 1O91a, and low
of So. In 1861, the first year Of the
war, their high was only 100, and the
low was Sc. In 1862 they partially
recovered. the high being 1O7ls, the
low 85. The IS of 1865 also dipped
Their high price in 1860 was 1O3; in
1861 it was 80; in 1862 it was 80 and
in 1863 it was 127. The low quota.
tions followed 4 parallel course.
In other issues downward Auctua-
tons were recorded, although spe'
clal factor came into play preventing
this from being as marked as it other
wise would have been. This factor
was that the bonds could be purchased
with legal tender notes or greenbscks.
whereas the interest on them was paid
in gold. The average gold value Of
greenbacks in 1862 was only SSS per
cent. Thus bonds, nominally paying
per cent, yielded when purchased wlth
this deprecated currency an actus!
interest return of 6s4 per cent on the
investment. In 1864 greenbacks fellta
gold value of only 49.2 per cent
so that the yield or government bonds
bought with them was actually about
II per cent, and this yield was greskF
at different periods of the war.
In view of this condition, the full
significance of the fluctuations in go''
eminent bonds in that period is nov
as obvious as in other instances cltee
but nevertheless marked dips IN ms
market quotations are visible on 'De
face of the records. The 6s OF l@i
were quoted at high OF 11S and sioS
of 102 in 1864. In 1865 the high WIS
only 1925 aad the low lo5's. but nsl'
year there was an advance, ana
1868 the high was 1875 and the w
1OSas.
Fluctuations by Month in
Spanish American War
The Spanish American war Of ''s
was only matter Of months. ias'
fcre the bond quotations might oe .s.r =
alyzed in terms OF months. aho ~
show typical depreciation 9a.m a.ss.
the period Of the war, with sucss,s c.s,s
tial rise aftcrward. The United ow@ ,s@
Is of 1907 were quoted in Marcn, III;
at a range of 1i0-l1S. The ranss
April, the first month of the war, :.
107-111; in May. 10S-1llh, anc .;i NJ
mained at about this level uh.m s.r tbs
ccmber. the end of the war, Was" sDno tb
range was 1l2i2-l13ls. In loss, tss
year after the war. the range ssishtll
year was ll2-ll5ie. which was sIsk Sssek
higher than the prices for thess SNIFF
obtaining before the war. IIn;xi
changes took place in otheI
States bonds during this peaosSe'' psaoe 'rh;k
The United States As Of lszo,a .rlirs
not showing very markeda show )
during the Spanish War, aia Thsh
notable rise the year afterwssu. ~ i2os
range for 1897 was from a low '. Il ~
to a high of 12s1s. The year 4 ~
war the low price sank to Ia vs
the high during the war p lrsbcas3
only l2S1a. But in 1899 tney me-, yosr n
ed sharply, the high for tnss ~
ing l34la and the low lss. masss
Therefore, in their presensa Shtss
quotations below par. uni1eu ni',ess,nr IL
Liberty bonds are simply orMa,rssslt
tfait Of their kind as they no.pi q. npi
might be expected to do' py thsft
token. after the war IS osssA ~ Ahan
no reason to expect otherwlssa 4 ~
they will return to par sa1
above par. sas