Evening star., 1920-05-29
u s. BONDS ON
LOCAL MARKET
Move Should Have Been
Started Years Ago-Lib-
J erty Exemptions.
BY 1. A. FLEMING.

If, as proposed, the Washington
Stock Exchange inaugurates liberty
bond department It will be perform
ing a good work. but one that should
have been undertaken years ago. in
the interests of thousands of investors
in these securities who have parted
with their bonds at less than actual
market value, or have been induced
to trade them for other securities OF
questionable value.
This is no reflection on exchange
houses who have been buying the bonds
for resale on the New York open market,
where any quantity could be disposed
of in business hours, and who nave
charged a commission. plus a small
profit on their purchases
But the mere fact that there were
so many millions of these bonds own
ed in this market that would in all
probability be liquidated as soon as
installment payments had peen com.
pleted if not before. brought large
number of concerns into tne 5n ma their
some of whom. it is said MADE tneir
own prices and profits. frequently III
excess of reasonable proht
Moreover, holders of liberty bonds
were induced to trade them for more
CT less worthless shares. and even TO-
dav oil properties are freely offered
in exchange for the government op-
legation 49,. ,oo,,
exchange would have to be on oirec,
orders, which should be. reasonapls
plentiful, and on the New York quo
tations.
The wise holder of liberty oonds
has consulted his banker and mas
thereby saved himself loss throush
sales below market values. mas ueen
able TO collect his coupons ana aaJust
interest: has kept track of the daily
quotations and known what he was
doing, not simply taking the first oner.
Moreover he has left his bonds Win
his bank for safekeeping:
Buyers and sellers of liberty nonos
might go to the daily session OF tne
exchange if they deem it essentlai
to watch their trades executed
Making Exemptions Palmer.
A new law is likely to be enacted in
the near future. making the exemp-
ton on liberty bonds palmer, In that
II removes certain conditions now es-
sential. .sucheas holding 100000 fourth
liberty IN s before being given ag-
gregate. exemption of $4,000 for Two
years on first and second As. and third
AXIS. Nor will it be necessary to hold
IS, 700 victory loan notes to obtain
exemption on an additional S2O.VUo OF
all issues, except 3 las for four years.
If the measure becomes a law as eA
pected any one may buy S3O.000 or
any of the liberty issues and hold
them tax free from all income taxes
for a period of five years after the
war.
Any one not owning any bonds may
buy 81. zoo of any liberty issue ana
hold to maturity exempt from an
taxes. This is permitted under the
present laws.
These exemptions and the low prices
have been sufficient to develop a great
investment demand for the bonds
No Additional Exemptions.
The proposed. measure does not in
crease the amount of bonds which any
one person may hold free of income
taxes. Under the various laws an ag-
xregate of $3.50, 900 liberty bonds and
victory notes may be held tax free for
a considerable period. The pending law
provides for this amount free for hve
years. and thereafter for three years to
the amoupt Of $4,000
s,t No Local Market.
Thereswas no session. of the local ex-
Change today, brokers making II
triple holiday over Decoration day.
News Of the day was favorable. for
eiEn exchange was higher. the trend OF
values in New York was upward. money
was freely offered on mixed and indus
trial collateral at and little better
than per cent.