Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-06-24
COUPONS OF THE L|BERT les
Where the Little Slips of Paper
Find Final Rest
Evidence Tint Many Holders DO Not
Appreciate the value of Their
Property-Don't Sell. but
buy More
(By Frederic ]. Haskin)


Victory Bond knows very little of what
happens to his coupon after he clips
IT and deposits it as so much cash in
his bank or buys supplies with 1t at
the corner grocery. AS II matter Of fact
it travels to tall building here in
which sits william s. Elliott. register
If the treasury, and moves unerringiy
to it's final haven of rest.
It's logical course Is through the
nearest Federal Reserve Bank. The
local bank sends it to this Federal
Reserve Bank. where it is charged up
against the Treasury Department It
is sent TO Washington as proof that
the charge is properly made and there
the transaction ends.
At this resting place of coupons you
sec how the mill works through which
the government pays interest on the
war debt One whole floor is given
over to the receipt of these coupons.
They come in from the banks by reg
istered mail in packages about the
size of a shoe box. They are stacked
up as SO much merchandise until the
clerical force can distribute and cam
eel them. on the day you are there
it may happen that a lot of coupons
has been sorted. that neat rubber
bands have been put around them in
packages of one hundred, that a
hamper has been filled with them
ready for examination and cancella-
ton. The hampers at the office of the
register will hold about 100000 cou-
pons, which is a good days receipts
EACH COUPON HAS A HOME.
These coupons are first classified.
Each of them is then run through
cancellinE machine. Each is exam
ined to see that it is genuine. Each
has a place in the files just back of
n card which carries the number Of
the bond from which it was detached
From the time it leaves the scissors
of the bond owner it is circling about
like a boomerang in it's flight but it's
planes are so set that it will find it's
resting place behind this particular
card Each coupon for each bond
when the years have passed that bring
it to maturity. will eventually rest
here.
In round numbers the government
has twenty-one billion dollars worth
of these bonds out among the people.
This means that it is paying interest
on that money which it has borrow ed
from them. 1t pays about nine hun
dred million dollars n year, two and a
half million day, as interest on this
debt. That is more money than il
cost to run the government decade
ago. 1t is eight dollars year for
every citizen.
These bonds have exerted a great
educational influence on the whole
people. Before the war there were
comparatively few who had had the
experience Of clipping coupons. Now
nearly everybody does it. Most people
cash their coupons through their banks
and in this way the operation almost
automatically takes care of itself
There is evidence. however, thai
many holders of these bonds do no,
appreciate the value of the coupons
Nearly every day at the treasury let.
ters are received enclosing these cou.
pons with checks for their face value
These writers say that they have
bought bonds and now they want tc
pay the interest on them They do no
appreciate the fact that they are to GO
the interest They have bought tn
bonds as a patriotic service and be
lieve that they must pay additions
periodic installments to the govern
/ ment.
MANY FORGET TO CLIP
The government realizes, also. that Their
are many people who are not clipping thei
coupons. These people think that thei
part is to sit tight until the bonds matur,
/ and that they will then present them an,
| get face value. The bonds are filed ava,
and will rest secure for twenty or thirt!
| years.
| The government has certain experience
back of ii upon which to base judgmen
as to what is happening. There was a Ger
tain issue of bonds growing out of tn
/ Spanish American war. for instance
There were about hundred million dol
/ lars worth of them. regarded as stupen
dous issue in their time. They mature,
/ in 90 years. There are. however, $500. M
Of them still outstanding. Some of thes
/ have been lost, some burned. some mere
filed away. Small amounts of them ar
still coming in.
, A hundred dollar bond of this issue,
the coupons have not been detached. wi
have $50 worth of them payable as in
terest. These bonds keep coming into tn
treasury with all the coupons still i
place. When such a bond of 800 denom
nation is received, for instance. a chez
is sent TO the owner for its face valu
and an additional check for $50 on accour
of the coupons. \ formal slip is sent stat
ing the purposes for which the Two check
are enclosed 1t often happens, howeve
that the holder of these bonds did nc
realize that the interest was coming I
him. II has even happened that the chez
for 500 has been returned to the treasur
with statement that n mistake had bee
made.
MANY ARE CHEATED
The most unfortunate phase of this fai
ure to appreciate the value of the co,
pons is evidenced when the uninforme
holders of bonds offer them for sal
If such holder takes his bond to h
bank he is given correct information a
to it's value. There are a great man
individuals who are buying bonds. nov
ever who are less honest. II hold,
takes a bond to one of these and offel
It for sale. it is likely to be bought
the market price and the buyer profit
illegtimately to the value of the coupon
They are Just so much cash in h
rocket This is a scheme through whc
dishonest dealers in many localities al
! to-day defrauding the bondholder to til
amount of the value of his coupon
which are like so much gold in his poke
The government Is attempting to ed,
cate the holders of its bonds to the
value and to an appreciation of the fa'
that matured coupons are so much cas-
1t is doing all that 1t can toward advi
: ing a bond holder that bank is the PR
per agency to tell him the value of h
= bond and to cash his coupons. 1t is ais
advising all bond holders against sellir
: their government securities. A multituo
q i'll, A. ,t.s,,.