Perth Amboy evening news., 1920-08-19

be bought at ss5.s1 for a 500 bond,
show a return OF SIS per cent. and
liberty AIS at s90.5f-they are tax
sxempt-show a return Of 4.0s per
cent.
some day It is admitted generally
the liberty and victory bonds are
going to reach par again. II may
not be until the very day of matur-
ity, when the government must re-
deem them at the rate of 800 for
each hundred dollar bond but they
will reach par. Those who have
been able to hold on to their bonds
will receive the full value-will get
/ back what they paid for the bonds.
Those who have bought the bonds at
/ the low figures at which they are
now quoted will receive far more
than they paid.
Senator Capper, of Kansas, Re-
publican, is taking a keen interest,
along with other members of the
senate and the House. In the fate of
the liberty bonds and particularly
In the fate of the millions of men
and who ptu their savings
into the securities when the govern
ment needed the money for war pur-
poses. He has appealed to the Fed
eral Reserve Board to take some ac-
ton which will afford a measure of
relief to the people who find It dif1-
cult to hold onto their bonds and
who must lose a considerable
amount of their capital IL they sell
the bonds now.
Senator Capper has suggested that
instead OF raising bank rates on
speculative loans on Wall street, the
government forbid such loans out
right and thereby release credit 10
support the liberty bonds. II the lib
erty bonds are allowed eventually to
fall into the hands of the rich and
the people of moderate means are
forced to sell put at low figures
Senator Capper said. there will be
bitter criticism when the bonds come
to par again and all the profits fall
into the hands of the few persons
who through their wealth, have been
able to gobble up the bonds and hold
on to them. Senator Capper direct
ed attention to the fact that 1t has
been reported that the government
itself has gone into the market, ano
purchased the bonds at the reduced
figures, thereby falling to aid the
bond holders.
A number of plans of helping out
the bond situation have been sug-
A fund to redeem bonds at
in certain quantities has been
proposed. Another plan suggested
is the conversion of the securities in
to serial bonds as a means of bring
ing them back to par. A plan along
that line proposes that all h lib
erty issues be refunded into a sin
gle serial bond issue, bearing inter-
est at the ate of 5H per cent. The
return to bond holders
be increased from 10 to SO
per cent and the bonds would quick
go to par. The entire amount of
the bonds. under the plan would be
retired by June is, 1947, the latest
date of any liberty issue. 1t is con-
that the whole transaction
not cost the government any
than the present sinking rund
method.
On May 81 last. there were out
standing approximately $~15,SS4,-
300. 900 of liberty bonds bearing IN
terest at from 81 per cent to Az.
They were subject to retirement
from September IS, 1928, to June
Is, 1947. The advocates of the sin
gle serial bond issues to be substi-
for these bonds figure that, If
al the liberty bonds are retired at
par on date of maturity, it will have
cost the taxpayers in interest and
principal from June Is, 1921 TO
June is, 1947, about $26,142.000,-
300. If congress on the other hand.
should enact a law providing for
he refunding of all these issues into
| single issue bearing 81 per cent
all TO be retired by June Is. 1947.
he cost would be approximately
S26, 2S7, 900. 900, they hold, and in
The meantime. the bonds will have
nearly their face value if the
owners desired to sell or raise money
On them.
Another plan advanced by Senator
Frelinghuysen has been to retire
the bonds and substitute for them
AK exempt bonds. with the idea of
up the values. But there is
strong opposition to any further tax
securities.