Evening star., 1920-01-10

Convinced that steps must be ken
by the federal government to prevent.
if possible. the sacrifice of liberty
bonds by persons in need of ready
money and the eventual monopoliZa-
ton OF these securities by the capt
talistic group. plan is now on foot
to authorize the postal savings banks
of the country to lend ,aeney on the
bonds TO any holders who desire to
make such loans. A bill has been in
troduced by Senator King of Utah
and has been referred to the Senate
committee on finance.
Under the provisions of this meas
ure any postal savings bank may lend
out of its funds and deposits s4o upon
u $50 liberty bond and $50 upon a
500 liberty bond. 1t is provided,
however. that not more than $50
shall be advanced to any one person
within any period of sixty days.
The loans on the liberty bonds are
to be made for not exceeding six
months. If the bonds are not re-
deemed in that time. then the bonds
terest or may be retained by the
banks in lieu of the deposits other
wise authorized by law. as the Post
master General may direct.
The postal savings banks are direct
ed to detach the interest coupons
which are current or may become cur
rent while the bonds are held by the
banks. in place of interest by the bor-
rover. Any person pledging and de-
livering liberty bonds at - postal
savings banks may redeem Ahem at
any time within six months fon the
repayment of the money loalSd. plus
a fee of 81 on a loan of s45 and fee
of 81 on a loan of $50.
Liberty Bonds Become ConEested.
Liberty bonds are becoming con-
gested in the hands of comparative
ly few persons said Senator King to-
day. discussing his measure. This is
exactly what Congress desired to pre-
vent when it authorized the issue of
these bonds at high rates of interest
and with certain exemptions as to
taxes.
There seems to be a propag ganda on
foot. conducted by lot of small deal
ers and brokers throughout the coun-
try, to induce holders of small amounts
of liberty bonds to sell them. The
small holders. many of them because
they need ready money, are selling
their bonds at a ruinous discount.
Misrepresentations are frequently
made to them by the dealers. I am
for money and they sell to these
Sharks
My bill provides a means whereby
the holder of bonds may obtain
more nearly the value of the bonds
from the government as loans upon
theiE DoHuS. lie lees C0dTSeQ are low
and the hope is that the owners,
knowing that at any time in the fu-
ture they will be able to obtain other
loans from the governpent on the
bonds if they need money, will redeem
their bonds.
"It is true that the national banks
today will lend money on liberty
bonds. But they do not like to be
bothered with so many small loans.
Many persons who own these bonds
do not have bank accounts. many
others have accounts in postal savings
banks. including the foreign-born
peoples who have come to this coun-
try. These foreign born peoples are
fam Jar with postal savings banks
for European nations established them
long before the United States. / be-
lieve that the plan proposed will work
to the interest of the bondholders and
also to the country"
Wants Early Consideration.
Senator King said he intended to
ask the finance committee to con-
slider the bill at an early date. The
bill was referred to the finance COM
mittee rather than the post office COM
mittee because the finance committee
has handled all the legislation hith-
erto in regard to the liberty ponds.
Notwithstanding the continued bad
situation with relation to foreign ex-
change, Congress has not yet under
taken anything to aid in its relief,
except the passage of the Edge export
finance law, now on the statute DOCKS.
There is a growing feeling among mem
hers of Congress. who have consider
ed the situation, that the foreign
countries should retire much of their
surplus currency, and get back to a
gold basis.
To the extent of the retirement OF