The Kendrick gazette. [volume] (Kendrick, Idaho) 1892-1968, 1919-03-28
THE VICTORY LOAN

AZ Inc f1fth loan, Wnlcn une' UuaVeu
States is to raise next month, differs
in several important respects from
the -four loans that have preceded it.
Instead of issuing bonds to run for a
period of some twenty years, the treas
ury will offer to the subscription OF
citizens seven billion dollars in FEEDER
al notes redeemable in much shorter
time probably five years. That is be-
cause the market is already so well
supplied with bonds-so choked with
them, we might say-that it seemed
hazardous step to add to the load SO
enormous quantity as seven billions.
No one has any question of the SOL
vency of the country, but the amount
Of capital that is ready to tie itself
up in twenty,year investments is, after
all, limited.
Five-year notes are much more at
tractive to- the investor, for they are
more likely to remain at par or near
it, and they are better for the country.
since they will return the borrowed
capital into the ordinary channels Of
business much more quickly than long
term bonds. '
The secretary of the. treasury is au-
thorized to issues notes Of four differ
emit kinds, having each "a different rate
of interest according as it is exempt
or on-exempt from taxation. On ono
series only estate and inheritance tax
can be collected; on another the sur
taxes of the income tax and excess
profit taxes can be laid; third is ex-
empt from all taxation up to holding
of $780, 900, but beyond that is liable to
income and excess,profit taxes. 4th
is fully taxable under the Federal law.
The notes are convertible at par, that
is, they may at pleasure be exchanged
for notes of different series bearing
the same date Of issue.
The bill creates a sinking fund for
the retirement of all bonds and notes,
and it is calculated at the treasury
that an annual charge Of $1,250, 100000
will wipe out the great war debt OF the
country in twenty-five years.
The bill contains two other impor
tant provisions. One extends credits
| to the Allies for Is months after the
war is officially ended, in case they
wish to buy wheat at the government
| price or property and military sup
| plies owned by the United States II
Europe. The other permits the Wa
Finance Corporation to make advances
| up to $1,000, 100000 to American ex
| porters who cannot get credit from
i the banks at reasonable rates. That Il
4 intended to make the resumption Q
foreign commerce on "a large seal
easier and more rapid.
There is some danger to fear tina
people will be slow to take up thi
great issue, for the end of the fightinl
has made it difficult to maintain tn
pitch of patriotic feeling that we al
reached when our soldiers were act,
ally offering their, lives daily on tn
altar and the perpetuation of ibert
throughout the world was still in tn
balance. But the money must be rail-
ed; the notes represent governmer
obligations that must be met this yea
and we are confident that our peopl
! who have already cheerfully and, it
fair to say, easily shouldered burden
that only a few years ago seemed III
thinkable, will not prove wanting b
fore this last and severest test. Til
Victory Loan, like all its fellows, mu!
go "over the top.''-Youth's Compal
ion.