The Washington herald., 1919-04-07
LIBERTY BONDS
TO RISE IN PRICE
Holland Confident Various
Issues Will Go to Par
and Not Stop There. :

when the Secretary Of the Treas
ury, Mr.. Glass. wrote mis- cheerful
and hopeful letter to Senator Cald-
er, OF New York, in speaking.
among other things of his close
touch with surface indications-that
is to say. those things which every
body who studies the situation has
recognized-but also OF the under
currents which affect financial and
Industrial welfare-he disclosed a
fac which was known 70 few of
our financial authorities. The Sec
retary has not been reluctant TO
hear advice. In fact he has well
coined il. He has been told of the
extraordinary financial situation and
of the probability that the Ameri-
can banks and the public will soon
begin to advance loans to the peo-
pie OF foreign lands who want to
buy commodities in this country,
these advances TO be probably in ex-
cess of $500. .O00, 900 a year. He has
been well informed respecting in
ternational conditions and no doubt
has learned from Fred l. Kent and
others that il the financing can be
perfected as it probably will. then
Europe will trade with the United
States to so great an extent as to
create a yearly favorable trade bal
ance for the United States Of not
less than $1,000, 100000. Many other
things have been impaired to the
Secretary, some of them Of conf
Dental nature.
CONFIDENT Bonds VIII Sell.
~. Sonr.,or,- r1.sS fao1s iustf,
fed in saying that all that he has
learned leads him not to anxiety re-
specting the marketing Of the new
Victory Loan OF 5000 oo0. 900; but
instead, to faith that the loan will
be absorbed by the American peo-
pie.
Some Of those who have carefully
read the Senator'S letter TO Senator
Calder see in it an intimation that
the Secretary now believes it Will
not be necessary 10 rely chietly
upon the banks for the support OF
this loan; at one time he was un-
der some apprehension that the
banks might be compelled TO take
the loan. Presumably the banks
will lend funds or credit to those
who are ready to tallee part in this
subscription. but that is a different
thing from buying the notes by the
banks for investment.
1t has been observed that Secre-
tary Glass confirms the view that
has prevailed since the liberty loan
of last fall was marketed that to-
day there are approximately 10000
600 individuals and corporations in
the United States that are now own
fifth Of the people OF this country
have invested in these bonds, in the
view OF the Secretary. That fact Of
itself tends to justify the impress
sion that the American people have
at last been taught the value OF
wise investment in securities. They
have learned to invest in good Sc
curities.
From Taxpayer TO Taxpayer.
This is taken here TO mean that
the American public will be ready 70
make investment in the foreign Sc
curities which will be offered in
this market in the aggregate OF
many hundreds OF millions after the
treaty Of peace is signed and re-
adjustment is well under way.
Another point which was brought
out incidentally by Secretary Glass
has not often been considered by
those who have subscribed to previ-
Gus issues of liberty bonds. Secre-
tary Glass says that this great ac-
cumulation OF loans made possible
by the subscriptions Of the Ameri-
can people, after all represents in
the final analysis only payment by
the taxpayers to the taxpayers. This
is made possible by the fact that
the United States is now substanti-
ally free from all Indebtedness TO
other nations.
In other words, the money which
the taxpayers pay for liberty bonds
I is almost Immediately distributed.
1t is conceivable that q man who
| buys a 500 bond may. through in
crease OF wages OF through distri-
! button OF government funds by
means OF the purchase OF com
modities. receive more than 800
which otherwise he would not re-
ceive. He will get back all that he
payed for a 500 bond, and more