Arizona republican., 1919-11-09
BY Frederic J. Haskin

WASHINGTON, D. c., Nov s.
Every day some scores of people from
Tampa or Tacoma, from Providence or
Pueblo, or from some other point on
the big map of the most prosperous
nation on earth, write letters to the
Treasury department at Washington
and ask advice as to safe investments
for the moneys that are accommodating
in their pockets.
That department does not want to
put itself in the position of unduly
pushing its own wares, but it has a lot
of confidence in the government Sc
curities that are kicking about and
really feels that an opportunity to
profit on an investment in those Sc
curities is about as good a thing as
one should want. If properly pushed,
Treasury officials will reveal a stu
alton which makes it look as though an
investor might go far and fare worse
than by purchasing government bonds.
In all there are ten varieties of war
bonds on the market. The government
has none of them for sale. They are
already sold. They are now owned by
the people. The government makes no
profit by their rise or fall. 1t has got
to pay interest on them at par and has
got to retire them at maturity. It is
all the same to the government If they
sell at ninety or a hundred and twenty.
The first Liberty bonds issued drew
the lowest rate of interest. They were
three and a half bonds Strange to
say, of all the issues this is the one
that is today bringing the highest
price. These tkrees and half are now
selling above par. The reason for this
is that they are exempt from income
"a fol xrh
goes largely into the Golfers of Uncle
Sam. buy these bonds and are allowed
to keep the whole three and half per
cent They are a good buy for the
rich folks, but they would be the worst
buy in the lot for poor man who is
not paying a high rate of income tax.
It is peculiar that the Fourth Liberty
Joan ISSUE which pays four and quar-
ter per cent interest, sells way below
par 1t is the cheapest of the govern
ment securities on the market. 1t sells
around ninety-four. 1t is not exempt
/ from income tax, and so is not so good
/ for the rich man. 1t is fine. however.
/ for the poor man. 1t is worth more
/ than ninety four. The reason it is
cheap is largely due to the fact that
there is so much of 1t. 1t was the big
/ issue. There is six billion dollars
worth Of 1t. There is always a certain
per cent of bond holders who are
forced to sell for one reason or an
other. OF big issue there are more
holders who put their bonds on the
market The old law of supply and
demand works and the price is run
down. The Fourth Liberty loan four
and a quarter, at the present price
pays ATT per cent on the investment.
The bankers favorite of the Liberty
bonds is the third four and a quarter
| These bonds mature in ten years
They are selling little below par
The interest is good and the early ma
turity insures a profit on the buy. Al
the present market price they figure tc
yield 4S7 on the money put into them
Then there are the second tours anc
quarter. They are the buy of then
all that just now yields the highest re.
turn on the investment. They sci
around ninety-four. The government
has the privilege of retiring them II
, 1927 and will probably do so. This