Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-07-25
LIBERTY BONDS
!! THEIR FACE VALUE
director Robertson Denies Govern
mont Has Failed to Meet Its
Expressed Promises.
THOSE WHO HAVE SOLD, lose
jrroasury Has Paid Interest Whcn-
"a Eyer Due and Will Redeem Ger
tiHcatcs Upon Maturity, Declares
e: director OF Loan Organization.


'D@;line of Liberty Bonds" requires
Y several "in,crprctative reservations"
Which trust YOU will gran, me
spAte to make. would particularly
siirect attention TO your statement
"a shat when Liberty bonds were bought
ioS ithe public the purchasers were
8 sifep the guarantee OF 'he govern
inent that the face value OF the bonds
sSs;@outd be maintained In so far as Il
might be possible 10 maintain IT,"
(which contract" you say. has not
oeeh kept"
There seems to have been a be-
= lief in ill-!nfurmed quarters that the
4 snsrket value OF the bonds UP to par
s would be guaranteed AS Il matter OF
b fsact, and as a matter OF record, no
such guarantee ever, was given by
the government. In the very nature
Ssoft sthings 1t could not have been
given. II would have been imprac-
I sficnii for the government TO carry OH;
Any such guarantee. one has only to-
ssk how the government, could have
Fsaone 1t. 10 see how obviously I'm
; kpraetical and Impossible such guar
s1antee would have been,
An unreasonao!y low preferential
crate from the banks would have been
destructive 70 credit conditions "a
Ssuniciently increased rate Of income
S. from. the bonds would have worked
tIEreat harm 20 other standard inter-
securities, besides placing
ssanYadditional burden upon the pco-
;Nple. and an offer TO redeem ~ par
.sSsuch Liberty Bonds as NIGH; he OF
l&fered for sale would have been. in
s&enect, a promise 10 pay any part %
the loan on demand. and this, OF.
stnipractical, bu; IL would have Ut.
Utterly defeated the very purpose of
Ssthe bond issues.
Si Only Those Who Sold Losers.
- Liberty Bonds have suffered u con-
saine. Ma aS''S Ssrsa1s Who n boaESt
fI.iberty Bonds have lost money there
by. but ! would emphasize the fact
that the only Liberty Bond pur-
s&chasers who have los; money on ;hem
$Sare those who have sold their bonds.
Estill have precisely what they bought.
SThe fundamental security is the
sSsame Their safety is beyond ques.
fsbeen reduced The government, prom
Sised TO pay the interest in full when
Never due. In this IL has not failed,
@promiscs TO redeem the bonds at their
Mfull face value upon maturity. This
S.pronisc Will be fulfilled.
IL The government could not .guaran-
a. tee. however. what a broker here, or
bin New York. or in Chicago, or in
~ Galveston, or In Portland. would Of
Es fer for Liberty bonds within the long
& life OF the securities, because. since
the bonds. like other securities are
g law OF supply and demand, no human
= agency could possibly say when The
supply would So far exceed the mar
~ ket demand as to cause a break III
Mnny holder. Eliminated.
II must be rememoercd that tho
.-s government undertook TO raise 10y
pSpnlar. suGscrintion more than SAL,
O0o,9oo.ovo in two years or less. The
20;Goo,o09 people. The number OF
~ holders is now undoubtedly much
sm hnn mo Nam GoH5 sn2sSrioed tor NOE
5E forced 10 sell. Many bought more
ia than they We're willing 10 keep Some
81 resardinc their bonds merely as 50
fS much spending money, threw them on
~ the market Many OF these people
~ might comfortably have held them
NJ e eirs 'h icy wis ,, 10 pdnise their de.
W certain stocks with which. uniortu-
"a patel%; the markets have recently
5I oeen Hooded, In connection with this
last statement 1t may not be out OF
81 place TO say that the New York Jour
nal OF Commerce in rcpor, publish
March and April OF This year no les,
than 3SI oil! companies were organiy-
8 ca s WitH ,5 an das.resate capitalization
,cS9nn,sthee,ip- nc ;remcnGous volume
4 Of Liberty bands sold In SO shor, q
time; the uufam.liar!ty OF so many
~ iarSe mum Der %; bonds thrown on
the finaiket' " + easy 10 see how de
been nothing shor; Of iinnnE.al
eiipsS Il I. me mIars:r haH no, ae
turn back H., Il o, i9:srsst; ho~"ver; TO
IS tory :" ,bc nases OF hnahc!al MS
KS sues part!cu,ariv "a 49,, p"'r u
sGyou viii ind gGvcrninent THr,y nee 1',.
HSS Notation, but a!mos; inyarinbi;y
f sultinE reaction so stirnuiated ,,pn,t,
g. securitic.s w.nt hsri '''"s '4v
Ia num62sr OF cases well above pa bar. D"
Work OF sinking Fund.
you say tho sinking fund provided
bior me purpose of retiring the bonds
as nol accomplishing the results ~
fM Iecteo 'or the simple reason that /.
uocs not cNlst, DO you KNOW ina.
I.&f considerah!y more than 1920. 600. 900
EE,in. Liberty Bonds have hcor NM
! chased by thr goverumc,lr-,
amoun' We'll In excess OF Is per cent
OF inc total IssucdH Perhaps. /,
nten' be argued that the govern
| ment taxing adfanta.o az loW bond
III pTccs should rush into ih, uI,k.,
~ ann MY heavily regardless 80 its r.
compton plan II his should n,
done would not The Treasury depart.
~ Smeht ." most severely criticized f.r
specniatln iu its own socurs,iry"
- and IN Scllhs bonds a. pa ana i,.-
ing 70 buy them back below tr,!-
as, IGdehpton Nalati There are rl.-y