Evening star., 1920-06-05
REFUND|NG PLANK
rs NOW SUGGESTED
~ 49,
Sentiment for Sterilization
Plan on Liberties in
Party Platforms.
BY I. A. FLEMING.

THE refuuding of the various issues
OF liberty bonds and victory notes
into long time securities, bearing
rate of interest that will guarantee
market at or near par, is one OF the
subjects that are today prominent In
the minds of many financiers
There is a well defined opinion that
the government is put in an unfair
position by reason of the serious
the great army of American investors
and by the corporations patrlotlc
enough to make most liberal inVes'-
r1ierits in these low-priced securities
at time when patriotism was h'sh
and rates on the bonds low
1t is one of the unfortunate thinss
regarding investments. that securities
with fixed incomes must give anu
take with the changing conditions as
the value of money the great co.li
modify. advances ana aec,ilies, lI IA
one will claim that with the woriu
war on. the rates at which the llberty
issues were put out were IN the
slightest exorbitant; on the contrary,
they were very low
This very fact has placed the gov
ernment in the position il finds ltseil
today as regards its securities. Win
its securities so to S14 discount on
the 500.
Rs't'N No Chance for StabilizntiOn.
There is small chance for stabiliza-
tion, and government buylng "oulo
be but a small factor. with the enor-
nous amount of bonds outstahoins
and the great disparity between the
yield and the actual value of money
today and the rates likely 10 exist
for some time to come.
Moreover, the government is In no
position to buy in its own securities
1t is having a hard time to meet Its
nd g down the bot
tom of the cash drawer. 1t would
surprise no one to find the govern
ment in the market as borrower in
the near future. and it will pay more
for it's money than it did in the stren-
uous times of 1917-1S.
RefundinE Available.
Refunding then is the only feasible
plan for giving the government
bonds the standing in the markets
Of the world that they should have.
for enabling those who still hold
their bonds to recover their substance
and to reward those who have pur-
chased when everybody was selling
and prices on the toboggan.
Sentiment favorable to refunding
operations has become so marked that
it is expected that the convention of
the republican party at Chicago next
week will be asked to approve plan
for the refunding of the entire $17.-
375,000.000 of liberty bonds, less the
amount now held in the sinking fund.
If the republican platform has such
a plank it is probable that the demo-
cratic platform will contain like
plank.
Would Restore Confidence.
Such action would be potent in re-
storing the position of government
securities and would go a long way
to- relieve the money market of the
weight Of liberty issues that has been
largely responsible for the stringency.
It is probable that no plan will be
advanced in the proposed plank, sim
ply n demand that Congress shall
Immediately take necessary steps to
refund liberty bond issues to restore
their value and to give them a suffi-
ctent longtime maturity to distribute
the burden of Anal redemption.
Stock Exchange Adjourned.
sdThere was no session of the local
stock exchange today, this being the
first day of the summer season. when
sessions on Saturday are abandoned.
Quotation An Error.
Report of Is bid for Chaplin Sacks
stock on the local exchange yesterday
was an error. there being neither bid
nor proffer of stock.