Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-11-06

these figures One knows exactly what
his returns will be.
But there is speculative element In
the purchase OF government bonds. Be-
fore the war, for instance. this govern
ment was able to sell its bonds at par
when they bore interest at the rate OF
three per cent. When nation is at war
no matter how strong II may be, its
securities will not sell as readily as In
times of peace. 1t must offer higher rates
OF interest. The United States offered
those rates Of interest 1t sold most of
Its bonds around four and half. 1t will
continue to pay that four and a half
until their maturity. which will be 10. %
and 30 years.
II 1t is granted that, after we have re-
turned to normal conditions, the rate OF
Interest the government will have to
pay Will be as high as three and a half
per cent. there will still be handsome
I interest premium on these longtime
loans IT can hardly fail to he true that
the prices Of these bonds will rise in the
open market. One Of these Liberty Loan
bonds can sell at 100 and yet yield three
per cent return on the investment. Those
wise in finance believe that 120 will be
about the normal price Of the best of
these bonds two or three years from
now. n one buys at % to-day and sells
at 12o three years from now he will have
cleared SIS on each s1Oo bond. In the mean
time he will have secured interest on his
investment.
The financial authorities cite the facts
OF history. In the Civil war government
six per cent. bonds were issued and sold
at 49, At the end of the war they went
to llS. and finally reached 1876 In the
Sfnnv iol,- A,,,nr
bonds were sold at par, and in a year
had gone to 10. British consos have al
ways been cheap when England was at
war, and high in times Of peace. German
, bonds sold at rs during the Franco-Prus-
sion war, despite the fact that Germany
was winning all the time, and went to
% soon after peace was restored. II the
financial experience of nations in wars
OF the past indications of what may
be expected, our issues should gain ~
points In the next few years.
So the treasury department thinks no
investor can make wiser choice than
government securities. 1t believes that
any man with money in his pocket will
fare handsomely If he goes to his bank
and says: Here are my savings Put
them in Liberty Loan bonds"
AS a matter of fact many people are
buying them. When, on the New York
stock exchange, the bond business of the
day amounts to fifteen mil ion, twelve
million OF it is likely to be government
securities. The only reason why the price
has not gone sky-rocketing is because
there Is so much of this paper in exist
ence. so much of it offered for sale When
it begins to settle down deeper into the
safety deposit vaults of the nation, to
disappear from the counters. the price
will rise.
When you buy a Liberty bond, the gov
eminent warns, do not put 1t in a tin
box or pigeonhole at home 1t may be
stolen or burned up and you would prob
ably be. unable to recover its value.
Leave 1t In your bank. Almost any bank
Will keep your bonds without any charge
Many Of them will clip the coupons as
they mature and credit them to your ac-
count. They are safe in the bank
And. finally. the government calls at
tention to another form of investment it
ofers-treasury savings certificates. One
may buy treasury savings certificate
fifty to a thousand dollars. They are for
sale at all first and second class post
offices. and any banker will take your or
der for one. 1t will pay you four and q
quarter to four and half per cent 1t
is registered and cannot be lost. When
ever you want your money on it you can
cash 1t anywhere. 1t Is like getting a
hundred dollar bill on which interest Is
paid. You might as we'll keep your extra
money working