The border vidette., 1921-04-30
GOVERNMENT SECURITIES.
Nearly Ninety Per Gent Held by the
 Public.

ment to finance the war are now in the hands of the public, according to statement given out today by the Government Loan Organization of the Sec ond Federal Reserve District. The statement shows that on December 29, 1920, the latest date for which figures are avail
 able, approximately $20, ,431,- TT, ,OOO of war issues were being held by individuals and corpor
 ations. The public holds 69.4
 per cent of the total issues of $22 ,961, 341 GOO outstanding. Baking institutions, at the close of 1920, were holding about 1O.6 per cent of the outstanding securities as compared with bank
 holdings of about 13,7 per cent on June 30, 1919. of the then outstanding amount. These fig ures will be regarded as signif1- cant blythe business and the
 banking communities inasmuch as they indicate that during the eighteen months period from June 30, 1919, to December 29, 1920, 8 net amount of over ST.,
 COG, GOO, ,OOO war securities passed from the banks to the investing public. To the extent that bank ing resources were thus releas- ed for other credit purposes. commercial activities should have benefited. On December 29, 1920, the war issues held by banking institutions for their own account was approximately g, 429, 564. .OOO or about 30 per cent less than the $3. 451. .1S4, ,OOO
 reported as of June 30, 1919. This indicates an increasing tendency on the part of the pub lie to invest in Government securities and shows a growing inclination by those investors to take advantage of the favorable yields which can be obtained from the several Treasury issues.
 The Government Loan Organiza- tion calls attention to the fact that not in fifty years have Government securities sold on 8 l basis so favorable to holders. The tendency toward absorp
 tion of war issues by the invest ing public, clearly indicated in | these figures, is of considerable interest to bankers and business
 men bent upon improving gen | eral credit conditions. Assuming that the continued purchase of Government securities for in vestment purposes evidence in creasing practice of thrift and saving, the nation may we'll
 regard this movement as an omen of a better day for the
 material growth of the country. It is important to bear in mind that the only permanent solution of the general credit situation lies in replenishing hundreds of billions of dollars worth of capi- tai destroyed by war. This waste
 can be repaired only through
 national and individual saving. One of the safest ways to en- courage investment on the part
 of the rank and file is to urge
 purchase of U. s. Government
 securities, inasmuch as the risk
 is negligible.
 In this connection the Govern
 ment Loan Organization sug-
 gests to employers that they
 take advantage of their contact
 with the multitudes of American
 earners to explain to them how
 easy it is to invest their money
 in Government securities. Any
 banking institution will gladly
 serve them by purchasing for
 their account Liberty Bonds,
 Victory Notes and the smaller
 denomination of Treasury Sav-
 ings Certificates. All of the
 larger post offices sell Savings
 securities ranging from 25 cents
 to $1OOO.
 The Government Loan Organ ization asserts that business and
 financial leaders can render a
 distinct service to the country
 and indirectly to themselves at
 this time of depression by help
 ing make clear to the public that
 every man and woman is aiding
 a revival of business activity by
 buying Government securities
 and holding them as invest l mpDtS