The Yale expositor., 1919-11-06
U. S. ADVISES
FARMERS BEST
WAY TO INVEST
Transfer of Liberty Bonds Held
by Banks Urged as Aid
to Cut H. c. L.

Through the State Agricultural col
leges of the Seventh district, as well
as the other districts of the country,
the savings division of the treasury
department is starting campaign to
promote savings and investment In
government securities, especially for
the benefit of the farmer. In letter
to the State Agricultural colleges Ben
jamin X. Andrews. vice director OF the
savings division. said in part:
'The treasury department is offer
Ing Thrift and War Savings stamps
800 and 81 900 Treasury Savings GER
tlficates (War Savings stamps II
larger denominations), and Treasury
Certificates Of Indebtedness. 1t is also
urging the transfer TO private invest
ors of the Liberty bonds still held by
banks, which, as the federal reserve
board has pointed out, by reducing the
inflated credit situation will be one eff
fective factor for checking rising
prices.
1.-The farmers OF the country took
for the first time became generally in.
vestors in securities. The problem
arises Can they to their own advantage
continue TO invest money in securities,
and If so, what form shall the invest
ment take? A leading rural economist
recently pointed out that the farmers
could not do better than place their
surplus funds in Liberty bonds. From
many quarters comes the warning
against the danger in rising land
prices which are in part due TO theIn.
vestment of the farmers surplus in
land which he does not intend TO cul-
tivate, but to rent or sell again.
1.-THE government is interested In
promoting the holding of Liberty
bonds, in preventing fraudulent prac.
tees by Liberty bond manipulators,
and in continuing the flow Of money
into Liberty bonds and other govern
ment securities"
Following are the chief points the
treasury department wishes TO be
brought to the attention of people In
rural districts:
Possible investments for farmer
(a) REIMBURSEMENT in his own farming
desirable as long as more capital can
be profitably employed; (b) land mort
gagcs-safe but not readily converti-
BILE to cash or convenient as collateral
for temporary bank loans; (c) per-
sonal notes-risky; (d) shares Of
stock-speculative and risky, farmer
not in position to have special knowl-
edge; (e) government securities. alb.
solutely safe as to principal and in
terest-no question as to prior claims.
always marketable or redeemable.
Government securities now avail
able: So War Savings stamps and
500 and 81 900 Treasury Savings GER
tificates, maturing January i, 1924, re-
dePmable on demand sooner. paying
per cent compound interest; Treasury
Certificates OF Indebtedness, $500 up,
running for a few months with inter-
est at Az per cent and AZ per cent +;
Liberty bonds and Victory notes, $50
up, purchasable in open market
through local banks. characteristics
OF these different securities-bonds es.
pecially desirable as collateral for TEN.
p0rary loans at banks.
Effect Of government investment
(a) Increasing saving fund of the
country; the dollar put into govern.
ment securities releases banking
dollar; (b) expansion OF business and
trade; effect on foreign trade especial.
~ important to farmer as the exten.
sion of credits abroad Is the sole way
Of making possible the sale Of farm
products abroad; increasing capital
available for agriculture (c) nigh cost
OF living situation, since increased pro.
duction and saving are the two funda-
mental cures for rising prices and in.
vestment in government securities pro.
vides both; (d) rural land speculation
craze-aided by farmer who puts his
surplus into farm lands for leasing or
sale; checked by government invest.
ment; effect of speculation on future
farming.
Holding your government securities
is good citizenship. why? The gov.
eminent is still borrowing funds.
Farmer now mark for fraudulent
stock operators, Liberty bond scalpers.
How check fraud?