The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-04-09

those men who go TO the front, the
mothers OF those sons who had to
die, the children who are left father
less in the world--they are all serv-
ing the colors just as much as the
men who wear the uniform, and their
suffering is. in many respects, greater.
We must learn in the second year of
the Var that we must not indulge self
to the extent that we have in the
past, We must purify our souls and
fortify our souls for this great and
mighty contest which liz now proceed
ing upon the battlefelds of Picardy.
And the extent to which we do that,
fellow citizens, lis the extent to which
We are going to help ourselves: 1t is
the extent TO which we are going to be
able to keep the general level of prices
at more reasonable point. and the
extent to which you will be able to
respond as often as the government
calls upon you to respond in the pur-
chase of liberty bonds.
Patriotism and Interest Rates.
And now that brings me to another
point about the liberty bonds about
which | want to talk to you very
frankly and very sincerely. I have
been told by some people that the rate
of interest on liberty bonds is too low,
and, therefore. we could not rely upon
the patriotism of the American people
TO buy these bonds. have been urged
to make the rate OF interest higher
than 1t IL today, in order that the
bonds might sell more readily. l DO
not believe. my friends. that 1t In nee
essary to raise the rate of interest on
the bonds in order 10 sell them. I
do not believe that the patriotism of
America ia expressed in the rate of
interest on a government bond. ! do
not beIieye that the American dollar
is a fugitive and must be chased by
high rates Of interest when the gov
ernment's credit Is back of them.
want to tell you fellow citizens. be-
cause this ia your problem as well
as mine. that If we do not all take an
intelligent stand now. in favor of
keeping the rate of interest on gov
eminent bonds stabilized at IA per
cent per annum. unless we are willing
to make a hght TO preserve the govern
ment's credit upon that basis, then IL
IL going to he the most unfortunate
thing that can possibly happen TO the
American people.
We have got to make IL clear to
every man, 10 every woman, and to
every child who buys a goverum ent
bond. that while II may be true that
they could invest their money in some
thing else that would pay larger re-
turn. they can invest their money in
nothing else that ia 80 full of blood
and necessity as a United States gov
eminent bond II we do the wrong
thing AZ this time, Is comes bacT 10
you. You have got IN preserve the
government because you are the gov
eminent. That is the virtue of de-
rnocracy. We have got TO make il
understood that. when a government
bond has been bought, the patriotic
thing to do is to keep II. not to sell
It. just TO get the dollars, The bonds
are sold in the open market. they are
traded in and sold. Anyone can buy
or sell government bond. II he
chooses TO do so. 1t is legitimate
trading and no ore wants TO inter
fere with legitimate trading. But I
want 10 make II clear to you, my fell
low citizens. that If you really are pa
triots, If You really want 90 help, If
YOU rally want TO protect the credit
Of your government. TO make IL strong,
and to save your rights and your lib
critics. you must keep the government
bonds, when you buy them, because
hat Is the supreme necessity of the
hour.
Financial Problem in Bond Issue.
why do 7 say that Every time
we issue three billion or four billion
of government bonds. what happens?
In a campaign OF this character every
man. woman. or child in America is
solicited for as many government
bonds as they can buy. and when the
subscriptions finally come in, and /
accept three or four billions of sub
scriptions, what Is the result? The
buying power of the market has. of
course. been absorbed. Everybody
who had any money TO invest in gov
eminent bonds has bought them. and
the result lie that If someone offers his
bonds on the stock market. there Is
no buying power left, and there In a
Gag. The price says. IL does not sag
because the bond ia not good II
does not sag becsua the purpose or
determination of the American people
to see this war to a finish is reflected
In that decline. II does not indicate
any lack OF determination upon the
part of America to carry the war
forward 1t does not indicate that
the condolences OF the people In their
government has been weakened. 1t
merely indicates, my friends, that the
people who sell their bonds, thought
lessiy or otherwise. or unnecessarily
in the market, have offered them at
time when there did not happen TO
he enough money left to buy them.
and that is the reason they go down.
What is the effect OF that? The effect
is that when the bonds are quoted be
low par. everybody says. Put up the
rate of interest again. To increase
the rate OF interest ia only paflia-
tive. You know, every time you sell
a great issue, the market is com bed
dry In the same way. SO far as invest
ment money is concerned, and the
bonds would decline again. No matter
what the rate OF interest Is. AS con-
sequence. my friends, IL the credit
of the government, of the United
States becomes deprecated, and II we
have to constantly stimulate the credit
by increasing the rates OF interest. IL is
a confession TO Germany. and IL causes
the kaiser to know. what he believes
of America, that its credit Ia weak
enihg. and the richest country in the
world has not enough confidence in IT.
self and in its own government 10 sup
port its bond at par.
Now, | want to carry that argu-
ment a bit further. because / want
the people of America TO understand
this. and / know that when they do
understand il. we will not have TO
continue to increase the rates OF in
terest. Suppose you put up the rate
again. We did put it up this time to
A I'D a .r~Tt& 4.