El Paso herald. (El Paso, Tex.) 1901-1931, 1918-05-24

IT IS time for renewed insstence that Liberty bonds be
kept out Of the Wall Street exchange. It is time
stop the practice Of dumping bonds the market from
the very DAY that the taking Of subscriptions closes If
there are 100000 subscribers to Liberty loan, wrong
Is committed against the great body Of subscribers
every time bonds thrown the market and sold BE-
low par
week Liberty s sold $3.50 70 see; first as at ss5O4
TO $685. second IS at $3.50 to ss4se and 414s at
ss762 to $3.50.
when 500 four percent bond has market value Of
only s95 shriyeng equivalent to Onetweneth OF
the whole value Of the bond Or it Is equivalent the loss
of interest for year and three months About two weeks
have ELAPSED since the Third Liberty loan closed, but
already these bonds being quoted under at price
The importance Of It is that the Wall Street quotation
establishes the market price for bonds the country
Let the mechanic the small merchant the man Of
moderate salary be 50 pinched IoI Iunos N sloosn
emergency that he obliged sell his 500 bond and the
intending purchaser first looks up the market price on the
bonds OF the issue ne eonJemPates PuInang 30 Nhen
price is established N New York 1t is Ike dropping
stone in pool The nipples spread II ever widening
crces until they reach the surrounding shores ana II IS
unfair tc that small bond owner who must SELL that he
should be Ssged TO sell under par bond which IS worth
Pressure not to sell should not be brought to bear upon
that man People Of small means who subscribe to the
Lbs-y loans do not buy with the intention OF unloading
They buy bonds for permanent investment intending to
keep them until their maturity. They sell only when
they must
Those around whom restrictions ought 10 be thrown
are the abg fellows the corporations the banks, the
public utilities companies, the large firms Of one kind OF
another who buy Big blocks or bonds 1nOse patIlotlc
firms AID corporations which buy and hold fast TO ther
bonds are deserving Of respect 10 word which can be SAID
IN praise Of their spirit Of loyalty to their government and
confidence their governments stability should be With
held from them. They Just patriotic, II they buy all
hev can afford buy the citizen Of small means who
-au just afford to buy $50 bond but not bit more
patriotic.
But there too many IN this country who buy big
blocks Of bonds with flourish Of rumpets and then rev
DAYS later put them the market 10 get their money
hack even at the risk Of small loss through the decline
from par II they get nearly all their money back at
ouc they tell themselves they can make 1t earn from eight
10 100 percent year
osed one lot Of $4,000 worth of bonds offered for
sale on New York eZchange-only 100000 worth ana
the total Of issued il this loan somewhat IN
excess Of S4OO0oO00C0 but that little offering was
enough TO send the market value Of the whole four billions
bsle par Other blocks Of bonds were offered and stu
are being offered and the market price has continued 10
drop
why does the price 90 below par? Because when the
loan campaign ended the buying capacity Of the public
was presumably about exhausted for the time being Inc
country had absorbed all the bonds it thought could
handle The appetite stated There could be no more
demand for bonds unless extra attraction provided
Therefore the price depression.
When secretary McAdoo hsEe he urged people not