The Nevada County picayune. (Prescott, Ark.) 190?-current, 1919-04-10
FLOATING LOAN ON
BUSINESS BASH"
REACHEsEvERY0NE
UNLESS ENTIRE COUNTRY 10
SOLVENT THERE CAN BE
NO BUSINESS.
BANKS CAN NOT CARRY 1T
Consequence Is That Everybody Must
Purchase Victory Notes to
the Limit.

Most Americans have heard side
walk and roadway discussions OF the
Victory Liberty Loan in which one
man will say something like this:
We'll, Of course, when the time
comes and the campaign starts 1t Is
government campaign and you are go
ing to have my support just as you had
1t in the other campaigns. But in this
preliminary period I want to say that
I believe the loan should be put over
on business basis"
The proper answer to give this sug-
as follows:
"All right, sir, our answer to that Is
that we agree with you. first because
we believe that it is good business for
the nation to be patriotic. Unless the
country is solvent there can be no
business. And the first business point
to be considered now Is that we owe
the money. think you have admitted
that the American people as . whole
owe the money, and I think you will
agree that unless q great nation pays
its bills 1t cannot continue to be .
great nation.
The next point In that We should
pay our bulls promptly. No merchant
Assitatsa to urge npon tAa Govern
mont the prompt payment Of IL bills.
Tho public supports this appeal. Fur
thermors. It II tho tradition amongst
10 81 he
paid In thirty or ninety days. Since
the Government owes the money,
therefore. 1t should pay It promptly.
Eow how can it pay It?
There are only two ways-by
taxes and by bonds. Goodness knows
the taxes are high enough already.
The only alternative. therefor. is to
get money through bond issues.
Now when we come to the ga g OF
bonds there are only two ways to dis
pose Of tnem-frst. by placing them
with the banks. and, second, by selling
them to the people as we have done in
the past four loans.
Let US suppose we place them with
the banks. What happens? Well. .
bank Is a storehouse and distributor
of credit Credit is the lifeblood Of
business and industry Without credit
you cannot expand your business, and
IL business does not expand In whole
some. natural way labor cannot be
fully employed. There is no panacea
or magic solution for the present ten
nt nd lob IN
only sound way to cure it is through
the normal and healthy expansion OF
industry, incident upon the return to
normal conditions OF American bust
ness prosperity, This cannot take
place without readily available credit.
and II the banks are choked up with
Government bonds the rates of in
terest upon loans will be so high that
business men will hesitate to un 'er-
take new ventures and to make new
commitments.
the treasury is taking advice, and
will put out the best bonds. from all
points of view. that possibly can be
supported. Once II Is offered, how
ever the only intelligent way to meet
this situation. from strictly cold
practical business standpoint. Is to get
under this Job and see to 1t that the
bonds are placed with the people who
can hold them as a splendid invest
ment and who in the great majority of
cases will hold them until maturity
and not only receive dollar for dollar
for them but probably An increase"