Arizona republican., 1919-11-09

the world.
These figures are based on the
known fact of the rate of interest paid
on these bonds, and the known figures
at which they will be retired There
is nothing speculative in government
bonds bought at these figures. One
knows exactly what his returns will be.
But there is speculative element in
the purchase of government bonds.
Before the war, for instance, this gov
eminent was able to sell it's bonds at
par when they bore interest at the rate.
of three per cent. When nation is at
war, no matter how strong it may be,
its securities will not sell as readily as
in times of peace. 1t must offer higher
rates of interest. The United States
offered these rates of interest. 1t sold
most of its bonds around four and a.
half. 1t will continue to pay that four
and a half until their maturity, which
will be ten, twenty and thirty years.
If it is granted that, after we have
returned to normal conditions, the rate
of interest the government will have to
pay will be as high as three and half
per cent, there will still be handsome
interest premium on these long time
loans. 1t can hardly fail to be true
that the prices of these bonds will rise
in the open market One of these Lib
erty loan bonds can sell at 120 and yet
yield a three per cent return on the
investment. Those wise in finance be-
lieve that 120 will be about the normal
price of the best of these bonds two or
three years from now. If one buys at
ninety-five today and sells at 100 three
years from now he will have cleared
SIS on each hundred dollar bond In
terest on his investment.
The financial authorities cite the
facts of history In the Civil war gov
eminent six per cent bonds were is
sued and sold at eighty-th At the
end of the war they went to 118, and
finally reached 126. In the Spanish
American war three per cent bonds
were sold at par, and in a year had
gone to ITO. British consols have al
ways been cheap when England was at
war, and high in times of peace. Ger
man bonds sold at seventy eight dur
ing the Franco Prussian war, despite
the fact that Germany was winning all
| the time, and went to ninety eight
soon after peace was restored. If the
| financial experience of nations in wars
| of the past are indications of what may
| be expected, our issues should gair
/ twenty points in the next few years.
/ So the Treasury department thinks
( no investor can make a wiser choice
| than government securities. 1t be-
! lieves that any man with money in his
pocket will fare handsomely If he goes
to his banker and says: Here are my
savings. Put them in Liberty loaa
bonds"
AS matter of fact many people ar,
buying them. When, on the New Yorl
stock exchange, the bond business o.
the day amounts to fifteen million
twelve million of it is likely to be gov
| eminent securities. The only reason
why the price has not gone sky
rocketing is because there is SO mucl
of this paper in existence, so much o
it offered for sale. When it begins t,
stetle down deeper into the safety de
post vaults of the nation, to disappea
from the counters, the price will rise.
When you buy a Liberty bond. tn
government warns, do not put it in
tin box or a pigeonhole at home.
may be stolen or burned up, and yo
would probably be unable to recove
it's value. Leave it in your bank. Al
most any bank will keep your bond
without any charge. Many of Their
will clip the coupons as they matur
and credit them to your account. The
are safe in the bank.
And, finally. the government call
attention to another form of invest
ment it offers-Treasury Savings Ger
tificates. One may buy a Treasur
Savings certificate whenever he has
sum of money from fifty to a thousan
dollars. They are for sale at all frs
and second class postoffices, and AN
banker will take your order for on