El Imparcial. (San Juan, P.R.) 1918-197?, 1919-03-12
EDITORIAL VIEWS
The United States
Government is about to
launch it's Fifth Liber-
BONDS AND BANKERS

ii 81 launch it's Fifth Liber-
s7N ty Loan, for much
larger sum than any of the previous ones and intended
to meet the tremendous War expenditures still to be
taken Of and place the business life OF the Nation
on good sound basis. Needless to repeat what every
body knows that the Liberty Bonds represent the best
Investment there is bearing good rate OF interest and
as safe as the itself of the strongest and
richest people in the world.
But we have read lately. in the press of the continent
warnings against the Liberty Loan sharks, whose mani
puations result both in the spoil of the bondhOlder and
i'm the scredt of the investment; and is our duty to
call the attention of the Federal authorities to the
sharks of this kind that lurking in wait for their
prev, here in Porto Rico. For instance we have known
of when the holder, having to dispose OF his Ii
bery Bonds Of the Second Loan could only obtain eighty
seven dollars and half for each hundred dollar
bond. The banker who telling us the other night
about similar told us that he could pay no more
than ninety dollars for hundred dollar certificates
of the Second Loan We don't know if that is tegdt
but we certainly know that it is big piece of THE
VERY, and therefore gross injustice is done to the
bonholder who should be protected somehow against
the rapacity of the bankers Couldn't these Liberty
Bonds be declared by the Government legal tendcr in
transactions of certain magnitude, the receiver being
compelled to take them at their face value up to say
twenty-five per cent of the total sum involved? That
would be good manner to avoid the unjust and arti~
fetal depreciation.
Apropos of banks and bankers, it is curious to note
that in this poor country Of the higher rate of in
terest paid to depositors is three per cent per annum
while the lowest rate at which the banks lend first
mortgage and perfect security is nine per cent? but the
rates OF ten twelve ana even hlgher, per anun are
quite common.
The head of of these institutions have in the Is
land was explaining to us how much banks contribute
in Porto Rico to the development of the riches OF the
country and to the welfare of it's inhabitants. Given
paying that rate of twelve per cent charge for in
terest, and which you consider exhOrbtant said to
would be surprised to hear about the great
number of people WHO have bought theirs honest Why
Jcerls naIg say fifty si4ty dollars month have
been able to pay for their houses"
# that is 4n Porto Rico @ $ some
ever said in this place somewhere else that people
iii general are too pr0liga with contrite heart and
repentance in the solid we ready to apologize But
we are rather hard to be convinced and therefore we
shall not admit guilty until full Investigation is
made '4 @4r' '" -
Let us, for example, consider the of man of
small family (though Porto Rican families not very
small and earnings sixty dollars month If that man
manages somehow to five hundred dollars, and de-
cides to hOme paying for it in the instalment
plan proposed by the banker the first thing to do would
be arrange for loan for say fifteen hundred dollars
to be guaranteed by mortgage on two thousand dol
lar house and plot At twelve per cent rate of interest
per annum he would have to pay fifteen dollars month";
and in order to cancel the fifteen hundred dollars loan
i'm eight years and half he would have pay another
fifteen dollars per month"; which would leave for his and
his family expenses thirty dollars per month. This, Of
COURSE is absurd it can't be done in San JUAN Porto
Rico no matter what any banker says. We have not
counted Insurance. taxes repairs sand forth, but
even the present rate of interest charged by bank
ers in Porto Rico, the working people will never ind
relief if they helped out by those bankers Ii
banks help enterprises agriculture etc. banks do
in other countries do not know We rather mclin
ed to think that they only for their interest Tin
a narrow manner, of course) After all they right
they will appear so, by arguing that theirs not
charitable but purely business Institutions Surely, Mr..
Banker, but don't POSE as anything else
of fha FERNS O