The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1920-08-10
BOND BUYERS
NOT TO SUFFER
Republican Nominee for
President has Plan to
Protect Liberty Bond
Holders.

Washington. August 9-Proposing
the serial bond plan as the best me-
thod of restoring Liberty bonds to par
the Republican Association, through
its president Hon. Jonathan Bourne,
Jr.. issues the following statement
from its Washington Headquarters.
i believe" said Senator Harding in
his speech Of acceptance, this govern
ment should make its Liberty and
Victory bonds worth all that its pa
triotic citizens paid in purchasing
them. There are probably l5.OOO.-
bond holders in the country today.
ana TO them Senator Harding's state
ment brings encouragement that their
securities will be enhanced IN yaIue
about 81. SOC, O00. 900, restoring the loss
sustained through depreciation. The
candidate implies that If he is elected
ne Will do his utmost to restore 70
par the war obligation of the govern
ment.
And it is no idle reference he has
made to the matter in the hone ONLY
q catching votes at the election. By
the refunding Of all the Liberty issue.
INTO single serial bond issue. hear
ing interest at the rate of 4 Ia ner
cents, the market price would prob
ably 60 Immediately to par. the in.
terest return to bond holders would
pc increased by from Is to So ner
cent the entire amount of the bonds
would be retired by June Is. I947. the
latest date Of any Liberty issue. and
the whole Transaction would cost the
government no more than an adher-
ence to the present sinking fund meth
The CONSPICUOUS advantage Of ser r
ial bonds over an issue having 4 sin.
gie maturity date were strikinQlv Sc,
forth by former Senator John w
Weeks of Massachusetts in an adj.
dress to the Senate on SEPTEMBER II
iyl6. during the discussion Of the
Fourth Liberty Loan Act. At thar
ume ne demonstrated how billions OF
dollars could be saved to the .axpay.
ers Dy the adoption of the serial
method. but his recommendation
were ignared by the Democratic adj.
ministration. 1t is not yet too late
20 secure the advantages of the serial
system II refunding plan should be
ADOPTED by the Harding Administra-
"on May 3lst there were outstand.
,ng approximately 81. 100000 OF
LIBERTY Bonds. bearing interest from
II to IA per cent. and maturing
az dates ranging from September is
iszo. 70 June Is. 1917. The redemp-
tion date tor Victory Notes is June
-. ~. and the maturity date Nav
~. IS!3. which are so near at hand
that the notes should be considered
separately in any plan for future imam
eng. Assuming that each issue Of
Liberty Bonds will be retired on its
maturity date. an exceedingly con-
servative assumption, then it will have
cost the taxpayers in interest and
principal payments from June Is. 1921.
"a convenient date after the inaugura,
tion OF the Republican administration
70 June y. 1917, approximately $26.-
i4<,-WO.OOO. If the Republican Con-
gress should enact law refunding all
those issues single serial issue bear
ing IA per cent interest finally re-
tired on June IS, lo47, the total cost
would be about $26. 1887 100000.
Inc advantages of that conversion
would be: The probable return of
every Liberty Bond to par, and the
restoration of about 81, 5O0, OOO, 900 to
the wealth of the bond holders. q
The distribution the first year among
me me pond owners of about $l75, 0OO,-
w additional interest, gradually re-
uueea from year to year as the prin-
eipai is retired. 3The certainty OF
the absolute extinguishment of the
Nation's war debt at the end of rs
years. Under the present system it
WIN run for an indefinite period de-
pehding upon various factors such as
tne discretionary use of the sinking
Iund by the Secretary Of the Treasury.
ana the possible refunding by Con-
gress of portions of the debt.
Practically the only objection to
tne serial method is the icreased first
cost. 1t would require for the first
year approximately twice the a,nro.
priation tor principal and interest con-
templated by the present plan hu,
with the annual reduction of the nr;n'
cipal, in few years it would be ac-
tually less than the sinking fund re-
auirements. Moreover, appropr;a.
tons for such purpose are not re-
scented by the taxpayers, as every dol
lar promptly goes back to them in
the shape of interest and principal
payments on their bond holdings.
OF course. tax exemption features
and other details of such financial,
legislation would have to be worked
out by the Congress but it is apparent
that it will be possible for a Republi-
can administration to enact a law that
will restore IN &he rp;lt;one ,f cwrare
of Liberty Bonds the losses they have