The Washington herald., 1918-11-11
ANOTHER WILD
RUMOR SPIKED
Holland Doubtful Of After
War Rise in Liberty
Bonds.

clated in value by as much as -
per cent. or even more. Gradually
the idea which is contained in this
remark is spreading, so that IL may
serve to restrain any who contem-
plate selling their liberty bonds from
doing that
The statement. uneIpaIned, seems
absurd. Nobody would venture to
predict that the liberty bonds which
were bought at par will appreciate
! In the markets so that by and BY
they will command a premium as
much as 100 per cent. The probabili-,
ties are that these bonds will, AFTER
peace comes command a slight pre-
miUm. But, like other government
bonds. they will In the market quo
tations hover about or little aboSo
par
( What was meant by the statemene
was this When the liberty bonds
were bought prices for almost everr-i
thing were far in excess Of prices
| which commodities commanded when
times were normal Therefore vyhenl
prices again fall the owners Of hb-i
| erty bonds will, IL they care 10 do So
/ be able to use them in buying conf
modities many OF which will be 50
per cent or more less in price thsui
they were when the bonds were
, bought
OF course this Us a somewhat strain,
I ed assertion, Yet it contains an ele-i
menJ Of truth. II does point to the
fact that there Is certain 70 be, by,
and BY. very great defation I'm the,
I prices Of all commodities. Today the
I best authorities are persuaded that
all commercial products such as ner-
chandise. metals. chemicals. agrIcuI-
tursl commodities and all textiles
have been inflated from 100 per cent
TO 200 per cent. or more ia some
cases. This has been entirely due
| 10 the influences eNerted by the war.
! II Is regarded as inCOnCeivsbie that
| these inflated prices should be main--
tsined as soon as reasonable read
! justment in the industrial and COM
mercial life Of the nation takes place.
The Time of Denstfon-
! No one ventures 10 predict how
I speedily the tendency toward dena-
ton will be observed EvCrvcne will
speaks with authority. however. saws
that II H. inevitable. The result wrl
: be the release Of vast sums OF money
tied up in loans. war,huuse rec.sp-s.
bills OF ladinE and other negotiable
securities Tn" rclesSs Of tins money
will he ,Deadily felt Iu the money
and in the securities market. There
is no doubt that Jh- financial dis
trict in this CITY and also IN the
larger cities OF tn, country will
within a few months after deasri0H
has set in he flooded with money
much Of which will he available for
IoanlnE upon call
One OF the best authorizes IN the
financial district said this morning
that ne expected TO see millions upon
millions Of released money flowing
into the great financial ceIJers- That
money will seek as profitable use a.
can be found. Much OF iJ will b.
utilized in purchase for investment
OF good securities But a great deal
of il will be employed IN dealing in
stocks upon margin This statement
ap~arsutlN suggests that snwe OF the
Leading men are Persuaded that when
d-fiation begins and while u is in
progress there will Le created and
continued What H. often called
buII-msrket In other words, the
American public will be tempted not
, only to make heavy Investments g,
securities but also TO try TO discount
the upward trend OF the securities
: market hy transactions which in
, volve the use OF call money.
L. :. VIII Feed Germany.
This deHatiou will not begin until
considerable period has elapsed AFTER
treaties Of peace have been ratified
/ For the United states will be obliged
for wear or more to continue its
unparalleled utilization OF industrial.
mining and agricultural activities. In
the Wall street district some Of the
leaders are satisfied that our Eov-I
ernment will feel obligated afterl
peace rs secured 10 send enor1uousl
amounts OF food not only to our al
-Ha - J
many. Austria. Bulgaria and Tur1
KEY For the evidence is plenufuV
that the plain people in these coun-
, tries will be IN immediate need or
food Our government will do pre-
cisely what Gen. Grant did upon a
small scale after Gen. Lee surr-n-.
dered the Confederate army at AP-
pomatox. For when Gen Grant was
informed by Gen. Lee that the Con
federate soldiers were almost stsrv-
ing. many OF them having lived for
DAYS upon psrched corn, and not
much Of that. Gen. Grant Immediately
issued an order that ample rations
be distributed 10 these soldiers as /,
measure OF humanity.
II will cost a great deal OF mone~~
70 feed probably for months, the
hungry people with whom We have
been at war. but the United States IL
going to do IT. Therefore, so long
as these industrial. commercial and
; agricultural activities are maintained
by the government, prices for COM
modities OF all kinds will undoubted-
" continue to be high. But the dsy
Is coming when these activities viii
, cease When readjustment is finder
way. i'm the view OF those who are 4
best Informed. there will inevitsbly
follow dersuon In prices for com
modities
, In addition there rs no doubt that
an enormous volume of money viii
, be sent TO the United States by mer-
chants and manufacturers OF other
> nations. since IL viii be advisable for
them TO maintain satisfactory bal
snces in this country in order 20
facilitate their purchases. They viii
do precisely what manufacturers and
merchants for many years have been
accustomed TO do in London. where
the aggregate Of balances IN the
Z banks representing deposits by mer-
chants. importers and manufactures
in other lands WAS many millions of
pounds sterling. HOLLAND,
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