The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1918-08-30
PREyiNc ON IGNORANCE AS
TO LIBERTY BOND VALUES

Now that preparations are under
way for the placing OF the fourth
liberty bond issue. which Ia expect.
ed TO be for twice the minimum
amount OF any previous issue, atten-
uon reverts to recent strange
statement by the Washington au-
thorities to the effect that "propa-
ganda educating the public to the
value of Liberty bonds as an invest
men has served to aid the Rotation
OF many times more wildcat secur.
ities than In peace times" The in
ference resulting from that state
ment and its context Is that the pur.
chase Of Liberty bonds has awaken
ed = dormant desire to invest which
has made II easy for the venders Of
worthless stocks TO entice the dol
lars out of their hiding places. II
that were true. we might al least In
dulge In the hope that the habit OF
saving and investing that Ii so
desirable should be formed. Is In
process Of formation. But, as the
further statdment indicates, Il Ia not
with money left after the purchase
lof Liberty bonds that these worth.
less and fraudulent stocks have been
bought. but mostly with Liberty
bonds themselves. Instead Of evi.
dencing an increasing desire to In.
vest surplus funds, the fact as re.
ported betrays an amazing ignor-
ancs- Of investment values. What
this condition. II true, signifies, Is
not reform but an enlarged exhib.
| tion of an old vice. II is not quick.
ening of the investment impulse
which the fact recited testifies TO,
but such a lack Of IL az makes Il
possible and easy for adventures
to acquire the highest security with
one that Is utterly worthless. Men
who are ready to exchange govern.
ment bonds for the bonds and stocks
of corporations that are mythicai
in so far as they have any assets and
earning power. can scarcely be
thought TO manifest an investment
impulse. What they, show is rather
ID the nature OF the gambling In
tnct which leads them to prefer
n imaginary chance OF huge returns
40 the certainty OF the modest II
reasonable return which govern
ment bond affords.
In every Liberty bond campaign
emphasis has been placed on the
duty OF the loyal citizen, TO invest
Undoubtedly that duty Ia the prime
and in itself the sufficient reason
lwhS citixens should buy Libert,
fbonds, ana n was therefor proper
TO put the emphasis on that point
But one effect OF this has been tt
suggest disparaging idea of this
investment value OF Liberty bonds
Men who have no sense OF in
vestment values are apt to put
a high estimate on a security which
they have bought simply as public
duty or under duress. Feeling that
the price Is In the nature OF dona
tion made to the government In re
sponse to appeals to his patriotiSm
such man Is apt to consider that
he does not hazard much In exchang
Ing the governments bond for one
that promises much larger return
Many persons. II In conceivable. who
could not be blandished into buying
wildcat stocks II Il was money they
had to exchange for them. become
easy victims when they need only
exchange a bit OF unfamiliar paper
which they regard largely as q GER
/ tificate of patriotic duty discharged
! There is no PLATA and adequate q
was by which mature peapi. can he
taught good sense and business ca,
pacity from the outside. but they can
be acquired only frdm the inside. by
I force of their own efforts and their
own necessities. But something can
/ be done between bond campaigns
designed to correct some erroneous
/ impressions that have become cur.
rent and perhaps by altering The
tenor of the argument that is used
in presenting government stock for
public subscription. provided always.
OF course. that the Washington state
ment is true, to the effect that large
numbers Of people are being induced
TO part with their national bonds
that pay fair and safa rate OF In.
terest In exchange for scraps OF pa
per that pay the holder no interest
at all and none of the principal
either.