The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-05

| eminent officials cannot put him out of
business or lack interest in what he Is
| doing. At any rate, thousands of not
| too scrupuious individuals are making an
easy living buying $50. 800 and $500
, bonds and always scalping a dollar or SO
on the trade, Holders of Liberty bonds
| should bear in mind the fact that there
| Is an open market for the bonds in New
York, that quotations of every issue are
published daily In the market columns of
the newspapers, and that II they are
forced to sell their Government securi-
ties, which always they are advised not
to do, any reputable banking or broker
age house will handle the transaction
and assure them every cent that the
bonds bring.
One criticism which has been levelled
at the Government since the close of
the Liberty bond campaigns is that 1t
has not established an open market of
It's own for the small holder, the man
or woman who by force of circum-
stances Is obliged to dispose of a small
bond, which could be done easily, many
bankers believe, by simply empowering
every member-bank Of the Federal Re-
serve system with authority to advance
the market value in cash for every Lib
erty bond offered to 1t for sale Under
present conditions an investigation
shows that the average person. UNI
familiar with market bethods and pro-
cedure, takes his bond. when II must
be sold, to the butcher, baker or candle
stick maker who hangs out a Cash
for Liberty Bonds" sign. Almost in
variably he receives less for the bond
than it is actually worth in the legiti-
mate market.
The present market for Liberty bonds
on the New York Stock Exchange is
the largest in the history of the life of
those issues. Between S6,000,000 and
SIS, 000, 900 worth OF Liberties of all kinds
are traded in every day and at times
their market fairly boils. So large has
II become. in fact, that a separate post
has been set aside on the Stock EX-
change floor for Liberty bond dealings
Formerly Liberties were traded in at
the regular bond post. The daily record
OF transactions in those bonds fur
nishes a graphic illustration of the grow
ing interest in the securities. One au-
thority recently made this comment on
the Liberty bond market:
Buying situation Reversed.
Buying on a large scale. at first at
| trlbuted to corporations and financial in
situations, which are in the best position
in the money market, is now traceable
to individuals. They are beginning to
appreciate the fact that the whole invest
ment situation is about to undergo q
| change. During the first three or four
years the desire OF investors was for
equities in enterprises which offered
them remunerative, II speculative, re-
turns. while investments paying a low
interest return were eschewed. To-day
the situation is being reversed AS time
goes on a greater preference will be
| shown by investors for more secure, even
IL relatively low interest bearing, in
vestments- That Liberty bonds will be
among those securities sought after I'M
der such conditions and resulting in a
considerable enhancement OF price is
firm conviction of shrewd bankers and
economists"
Several considerations are Immediately
back OF the active market and advancing
Liberty prices. Not the least of these
is the fact that many people who have
huge profits made In stocks are switch
ing into Government bonds and sailing
them away. Still another and less al
truistic factor just at the moment is
that many people with large bank bal
ances bought the bonds just prior to
October l to evade the per cent. tax
and have tucked the spare bonds away
until after tax day. More important
is the fact that ~ per cent. of
the bonds issued by the Govern
ment In the first four loans have
been cancelled and retired. The
greatest proportionate retirement has
s,S per cent. has been cancelled. APP