Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-02-17
Selling the New Bonds

| cannot be denied that the task facing
secretary of tho Treasury Glass in the
notation OF tho proposed new bond issues is
gong TO be lierculean one. lie is asking
congress to authorize issues up to an ag-
gregate amount of $4,000, 600, 900, and Of
thls sum 1T is understood to be his purpose
within the next few months to float an issue
of $4,000 100000. His purpose as far as
possible is TO make this Il popular issue in
the same sense as the previous Liberty loans
Ihoeeo without tax exemption feature
ana 1t is not to be supposed that there will
be tax exemption privilege attached to the
new bonds-it viii have to be in large meas
urc a popular issue. With tax exemption
provided. of course, the large moneyed in
tercsts would jump for the bonds as a means
OF escaping the huge income tax, which, on
incomes OF Sl0CO,000 and more is G5 per
cent. The result, though, would be a loss
TO the government that would cat up much
OF lhe returns from the sale OF the bonds.
without the tax exemption on the other
hand. the big financial interests would prc-
ter Tor the most part, to invest their money
III securities offering larger return than
inc = per cent government bond
So the chances arc that he larger part
OF the market for the new issues has got to
he found with the 22,00O,OO0 individuals in
the United States who invested in the fourth
ana preceding Liberty loans. The response
VIII depend on tho extent TO which the Amer
ican public has learned To appreciate tho
soundncss OF the advice that has been given
IL 10 invest In government bonds for its own
"ci"sh interest. During tho war it is reason
ablc TO suppose that large part of tho
popular response to the loan campaigns was
ouc TO the patriotic impulses which inspred
men to buy bonds for no other reason. often
'nah tho TACT that the government needed
INC money TO win the war. Men who couldn't
50 10 war bought in many cases because
they felt that in buying they were in 4
measure furnishing a substitute. And t,cv
ooush'' many OF them, until it hurt" It
was with thousands OF buyers. men and
women, case of doing their Bit 10 win
the war III the most effective WAY at thoir
disposal
with these new issues there is not roinr
10 nc naturally. the same patriotic urrc /,
10 no rcproach on the patriotism of the Amer
ed" Pcopie 10 say that the moment the war
was won they set about looking TO their own
ahairs 1t was in fact though perbans no,
IN motive the most patriotic thing they conld
40. but the fact remains that they arc nov
'"i"N'nE aoont their own affairs and Sec
"'isS mas got to rub their bump OF
hard common sense when he asks Them "a
buy his bonds ~ ~
HIS task, big as il is. is by no moan.
hopeless one In tho first place. MANY nj
'"ese --'ooo,Voo who bought Liberty bonds
""'o INC war was on principally because
u inc patriotic appeal. have discovered in
cohsequcncc and for the first time in tbc;.
ives now to save. Government banking or
hc'ais arc authority for the statement tr,t :,
surprisingly small percentage of thc bo,d,
!"d' were bought in small lots nv tho modost
INVESTORS. nave changed hands though most
VI them were bought on the instaIlmcn, MA,
'"s means II 1t means anything that tbc
"o'ucfs nave adjusted themselves to tbo roo
"''r payments and. their cauitv in tboi,
purchases has increased their annroci,tio,
y, INC value OF their holdings has grown
mus inc habit of saving-so badly reodod
IN thlS country before the war.-has haan
pretty well ngrained in some twenty odd NIL
mons OF citizens at time when the final nav
,'c"'S on thrcc of the four Liberty loans u, va
'ceh made and the government is prcnarcd -
oher new issue ~ "
certainly this should he cncour,ci
."e government. even if il will bc nccos..
'o' IL 10 lay aside many of the forms -,
"pPeai used on the previous loans and d,a,,
almost exclusively on the intrinsic voiro 80
It's wares. Certainly, too. il can no ara,,oa
Win lofce that the bond Of tho r;che.t
country on the face of the globe is cir.
edge investment 1t s''-