The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-04-05
VICTORY
SUCCESS SURE
Secretary of Treasury Replies to
Calder-No Cause
For Fear
PEOPLE WILL SUP
PORT GOVERNMENT
Liberty Bonds Of All Classes VIII
Sell Above Par Before Maturi-
ty.

'''iStli!!S t'!i, -1I!I l-'OIl4ucIlSt
in the financial condition Of the coun-
;:'y and its ability 20 Aoa; the forth
coming Victory Li,":,.y Loan was cy-
pressed today by Secretary Glass in
replying TO the suggestion Of Senator
Calder OF New York that ii spcci;l!
session Of congress should be called
20 step depreciation in the narKcl
price OF Lihe:;: bonds.
Far from agreeing that the de-
cline in outstanding bonds might
jeopardizc The popularity campaign
for liotation Of the Victory issue this
month. thereby tying up credits by
forcing the banks to take the new
bonds. Mr. Class declared that he
wa. assured the treasury's efforts to
solve the financial problems Of the
! country would have the supper. Of a
united and victorious people, De-
probation in bonds, he said, has been
F! the result Of artificial causes and ne
knew Of no one who did rot believe
that all Liberty bonds would sell
above par before maturity.
There is today no insnfficiency Of
| credit fol. the needs OF any useful en-
terprise, nor insufficiency Of gold TO
support our credit structure, Secre-
tary Glass declared.
Echoes Of the political fight which
occupied the closing hours Of con-
gress were contained in the secre-
! talv's reply, which was in the form
of q letter to the New York senator.
He quoted from speech by Senator
/ Calder on the Victory Liberty bond
! bill in which the senator declared
that he saw no reason why We should
not feel certain Of the future Nj
Glass said there had been no adverse
developments since the bill was pass
; cd. which would make necessary n
| special session, as Mr. Calder advo-
/ Gated
Already commerce ana industry
! begin to show signs Of the renewed
life which must follow the removal
, Of the restraints and interferenccs
which war made necessary" the Sec
retary said.
Tho va. is VOL. Our present ma
t;onal 0cnt OF less than S25,00O,000.-
600 and our ul1inate national debt.
after All war bills are paid, which
! OUGHT not in any e;'cnt TO exceed $780,
0C0. .O00. 900 against which we shall
hold $4,000, 100000 OF obligations Of
foreign governments is the barest
fraction OF our national resources.
! This relation OF our debt to our pop
u!ation and resources is small indeed
compared to that Of any Of the great
countries Of Europe.
The discontinuance Of government
interfcrcnce with tho foreign eX-
changes made possible by the ccssa-
ton of hosti!ities has demonstrated
the true position Of dollar exchange.
which not only is at a premium in re-
la;ions to the currencies OF al CT the
European countries which were en-
gagged in the war, but has now ap-
! preached par or actually reached
premium with respect to the curren-
! clos of European ncutrals."
Our reserve, the greatest in
amount in the world, the greatest IN
relation to circulation and eposit in
J any OF the countries which were en-
Gagged in the war was on March 2S,
1918, $40 per cent of the combined
relation TO circulation and deposit in
ties OF the federal reserve banks. This
;con?parcd most favorably with COM
bined reserve of 1913 per cent OF
. November s, 1918. just before the ar
:nis.ice. particularly in view OF the
| fact that simce that date the govern
m-nts expenditures. for the most
part. growing cut Of the var, haze
approximated 5000 900, 900. the
greater part OF which has necessarily
been provided by the sale OF treas
uly certificates OF Indebtedness to the
! banking institutions Of the country
The governments expenditures
which shortly after the arnastice
rea ched a maximum in excess OF 81
O00, ,G0O, 900 in month. should, after
the war bills have been paid. shrink
back to $4,000 100000 yea! in addi-
ton 10 the interest and sinking fund
charges on the public debt. This debt
is widely distributed among perhaps
%, 600. 900 of our people and involves
merely payment by the taxpayers
TO tho tax paJcrs--tor we arc fortu-
natc above al the great countries OF
thc world in having practically no
foreign debt.
The liquidation which has taken
place in Liberty bonds since the ar
nisticn is traceable to other causes
than tho interest rate and terms OF ,
the bonds. Foremost Of these causes
is the fact that many patriotic Amer
ican individuals and companies. sub
scribe for bonds. in a spirit Of patriotic .
fcrvor ind3ccd by the war. in excess
Of their ability TO hold. The over
sold condition Of the market fer Lib
cy!y bonds thus created was accen-
tuatcd by the reaction following the
armis1ice, which made many feel
:her were released from the duty OF
holding their bonds in aid OF the
governments credit. by the desire to
realize losses before the end Of the
year and thus reduce taxes; by the
changed financial position OF many
bond holders growing out Of the ter
lnnation Of hostilities, and worst OF
ali by the wicked devices OF boHd