The Birmingham age-herald., 1919-02-01
FEELING OF PRIDE
 IN BOND INVESTOR
Ry HOLLAND

New York. January S1.-(Special> One of the many bankers who gave aid or credit to persons of small means who were anxious to buy Liberty Bonds especially the latest issue, spoke this morning of the sense of
 pride caused by the realization which
 these little bond buyers now have through their purchases of bonds that
 they have become capitalists, although
 in a small way.
 The eXultat tion which these purchas- CTS have not been ashamed to reveal as they have spoken of their bond pur- chases. have constituted not thes least
 remarkable feature associated withc
 these stupendous bond offerings by
 the government. The transactions seem
 to have awakened a new spirit in these
 small investors so that they are now
 beginning to understand the meaning
 of thrift and already perceive the
 truth of that saying. If you save the
 pennies the dollars by and by will show what you have been doing
 In view of this new spirit the wonder is whether the marketing of the pro- posed issue of bonds to be labeled "Victory Bonds. and to amount in the aggregate to not less than five bill lions, will stimulate further pride ana qualification through the sense ot ownership of some of these securities. although the individual amount in each case may be no more than $50 bond. For there appears to be some appfe- hension that those who are to<have tho task of floating these bonds will dis cover that it is more difficult to do 1 that now than was the case when ap- peals could be made to the patriotism and to the absorbing interest in the war and hope of victory, which served with other stimulating influences to ! make it possible for great body or | the American people estimated at 20,- I OOo. 900 to buy these bonds.
 There are. however. other reasons
 for apprehension. It is not an appre- hension which is based upon doubt whether or not the issue will be mark eted within the time limit for the sale 1 of the bonds. None of those who are ! in authority at Washington. none of ! the men of finance. doubt the success | of the loan which is to be offered in mid spring. But it may be success not due to the ruling disposition of | the people in large numbers to buy the
 bonds. but instead may be based upon | the cooperation of the American | banks These are expected to under write the issue. The underwriting may l involve a large amount. It may on the l other hand involve no more than talk l ing up that part of the issue which is
 not bought by individuals
 A DELICATE QUESTION
 l Another cause of slight apprehension l lest the people do not entirely absorb 1 the Victory Loan. is based upon the
 fear that if the bonds be offered at the 1 rate of interest nominated in the i fourth Liberty Bonds then greater will be. the difficulty in marketing them. lon the other hand, if it should be de- | cided to fix the rate at per cent, l as some have earnestly advocated, then | that may tend to depreciate the mar 1 ket value of the bonds which have al- ready been sold, some going as far as l to say that 5 per cent Victory Bon1 | will cause a depreciation in the mar | ket value of the previous loans so that they may be quoted at low as 9O It lis a delicate. difficult question to an- | swer correctly. The answer will af- feet not only the marketing of the loan i which is to be offered in April, but also the 2o,000,o00 little bond buy | CTS" so-called, who have invested 1 their savings in the fourth Liberty Loans. Of course, ultimately all these l bonds will be redeemed blythe gov l ernment at par. for that is a part of ! the contract. But for some not yet I well understood reason. these earlier l issues have been depreciating so that ! any of those who out of their small /, means purchased a $50 or s100 bond
 should be compelled by necessity to sell 1t he would receive. not the amount which he paid for the bond | but instead considerably less. No one presumes to say-that this reflects de- ' preciation of the credit of the United
 States GoVernment. But as yet no one