The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-10-10
Business and Finances

curities in any abundance has had the
effect of giving prices a substantial
boost. Indications are that large
blocks of securities have gone from
the hands of professionals to the lock
boxes of conservative investors, who
believe that present prices are dis
counting and possible emergency that
may come to pass in the coming
months. This is one Of the prime fac
tors in the strength of the present
market, and serves as the fundation
for what many people predict will be
the most colossal boom that this coun-
try has ever known.
Liberty Bonds.
One of the most gratifying features
of the financial situation in recent
weeks has been the advance in prices
of the outstanding government war
bonds The principal reason for this
are the favorable treasury statements
and the growing demand for these
bonds by investors of large means
throughout the country. A particular
ly favorable impression has been
created by the report of the purchases
and cancellations bv the treasury, and
this has encouraged those who have
been conducting an energetic cam
paign for the wider distribution of
these bonds among private investors.
II, this campaign continues to show
the results which are now being OBJ
tanned, the general financial situation
will be greatly improved, as it will
relieve the banks of tremendous
burden they have been carrying, and
will allow of greater freedom in ex-
tending credits to foreign and domes-
tic applicants.
Not only will the wider distribution
of Liberty bonds improve the bank
position, but it will also improve the
market for government bonds. 1t will
get the bonds into the hands of actual
investors, who may be expected to
hold the securities until they mature,
or at least for considerable periods.
There will be fewer bonds hanging
over" the market, which will tend to
reduce the depression which has kept
some of the war issues under par.
Several months ago, shortly after
the issuance of the Victory Liberty
notes, experts estimated that there
were upwards of $4,000, 100000 in war
bonds "nndigested. either as the prop
,erty of banks or pledged as collateral
to secure loans which the owners of
the bonds required.
Reach Turn in Road.
These bonds, lodged in the banks.
took up $4,000, 000,000 in credit which
should be released for other purposes.
Neither the Federal Reserve banks
nor the member banks could function
at their highest rate in this situation,
and it was generally agreed that until
the war bonds were got into the hands
Of the people the real strength of the
. American financial structure would
not be possible of attainment.
As it was obviously impossible to
resort to another great drive it be-
came necessary to resort to other
methods for furthering the distribu-
ton of the bonds, and quiet cam
paign was inaugurated AT first little
could be done, but when, several
weeks ago, Secretary of the Treasury
Glass announced that the treasury
had turned the corner and that hence
forth the treasury's receipts would ex-
coed its disbursements, better de-
mand for war bonds developed. Also.
the fact that the government reduced
the interest on certificates Of indeb-
tedness of the six-months issue to Az
per cent. as against the previous rate
of ~ per cent paid on such certifi-
Gates tended to improve the market
position of Liberty bonds and Victory
notes, and buying of the latter immed
lately began to expand
1t was felt that if the governm en-.
could afford to reduce the rate of in
terest on the short-term certificates it
must be because the government )
credit was getting better. To adjust
this improvement in Liberty bonds and
Victory notes the market price had to
advance, and the general public appre-
eating this, began to show more
lively interest in the war bonds.
: i.