The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-12-18
TO LAUNCH DRIVE FOR MORE
SAVINGS IN U. S. SECURITIES.

0AHlN1S TN VI .. 0EOOhl tiESs
The government has launched COM
prehensive scheme to induce savings
and investment in government securi-
ties, designed to reach the small
investor.
Facilities OF the postal savings sys-
tenn and the treasury department will
be combined in a vast unified system,
making possible the accumulation of
funds in AMOUNTS from ten cents up
ward and their conversion into larger
securities.
The smallest unit will be a ten cent
stamp purchased at the postal savings
bank; the largest a bond of $1,000 five
Of which any person may own.
Thousands of post offices throughout
the country will be the governments
banking agencies, through which Secre-
tary Mellon hopes to encourage thrift,
and obtain funds for financing the
governments current needs Efforts
have been made to make the new sys-
tenn as simple as possible.
1t went into effect Thursday, De-
cernber 18th, on which date there was
placed on sale ar entirely new series
OF treasury savings certificates, having
values at maturity Of $25. $1OO and
1000.
The certificates are offered at Nat
prices Of $50, $50 and $500. They will
attain their maturity value in FIVE
years, The interest is equivalent to
IL per cent compounded semi
annually.
Saving facilities of the postal system,
now available at 1000 post offices. are
being rapidly extended. Deposits in
the postal savings banks may be ex-
changed for the treasury certificates
without loss of interest. At the same
time treasury savings stamps, in one
dollar determinations, will remain on
sale as a convenience to those who
wish to accumulate the purchase price
through stamps
The plan is designed to stimulate
the accumulation Of savings by accept
ing deposits in amounts of 81 or More
through the postal savings banks which
are being conducted in the post offices"
said Mellon, and to encourage invest
ment by offering treasury savings GER
tificates on more attractive terms, in
convenient denominations. both for di-
rect sale and on conversion of postal
savings deposits"
The new certificates will be redeem
able before maturity, and if redeemed,
bear 3 IL per cent. They are regis
tered to avoid loss, and each certificate
will bear the name Of its owner. The
small war time savings securities will
be discontinued; thrift stamps out
standing may be redeemed or ex-
changed for the new issue.
There can he no question about the
need for saving nor of this country s
capacity to save" said Mellon. by
Offering uniform and comprehensive
means Of accommodating and invest
ing money the government hopes TO
furnish an incentive for saving, to en-
courage savings and investment in
government securities, and at the same
time to stimulate savings activities
generally.
can active response to the govern
ment's movement should accomplish
three main objects. 1t will aid the
government in the current financing Of
it's requirements. 1t viii make for
greater prosperity and it viii increase
the personal happiness and individual
welfare Of those who save"
The government, 10y obtaining a con-
SIai1 4HifSW u money VIII AVOID the
necessity of borrowing to meet its cur
rent requirements. It has been the
custom TO issue certificates. redeem
able when quarterly tax payments are
made.
In addition. the vast funding opera
tions the government must carry on
during the next few years viii be
simpliiied and the payment Of maturing
securities can be referred through the
new issues. These funding operations.
Mellon stated in his annual rerSrt,
dominate the situation" so far as the
activities of the treasury are concerned.
War savings certificates and bonds
totaling seven billion viii mature
within eighteen months Payments
cannot be made from current income
derived through taxation.