The Topeka state journal., 1922-12-23
ENCOURAGING THRIFT

I OF $500 5tUUusoUO sou curing lAe year
1918, will become due and payable ou
January 1.
In order to have the people con-
tinue the policy of saving they
adopted in war time the treasury de-
partment has made arrangements to
effect an exchange OF war savings
stamps coming due on that date for
treasury savings certificates This
exchange. will be made on the best
possible terms and with the minimum
of red tape. The holders of war saw
ings stamps can exchange them for
tie new savings certificates and the
difference in value of the war savings
security and the purchase price of
the treasury saving certificates will
be paid in cash by the government.
one of the most progressive move
ments of the age, having the sanction
/ of the government, is that providing
means for national thrift and saving.
1t started during the World war. The
government was forced to obtain
money. 1t sold bonds at various
times and in denominations as low as
$50. Still there were large sums of
money which the government needed.
1t was held in small amounts and
boarded in a score of ways which kept
it out of circulation. To Nreach these
Tsmall sums the government offered
war savings stamps. These securities
found a ready sale and about bill
lion and half dollars flowed into the
treasury.
After the close of the war there was
still a demand for government savings
securities. The government had
nothing to offer except the war saw
ings stamps. They did not suit
peacetime conditions War savings
was a rnisnomer. There had to be a
changes
In the last annual report of the
treasury, Secretary Mellon says: The
necessity of keeping constantly before
the small investor a security adapted
to his needs and at the same time Civ
ing an interest yield sufficiently large
to be attractive, led to the offering
of a new issue, of treasury savings
certificates on December Is, 1921, un-
der a plan whereby each certificate
issued should mature five years from
the date OF its issue, instead of at a
uniform maturity date as was the
case with previous issues"
The new treasury savings certlfi-
Gates mature five years from date of
issue, they are exampt from all state
and local taxation (except estate and
inheritance eaxes) and from the nor
NAL federal income tax. To meet the
requirements of the small investor the
lowest denomination is S25 and is sold
for $20.5O; the next is for 500 and is
sold for $50; the third is for $1,000
and is sold for $500. The face value
is the maturity value and they will
be redeemed at that price if held for
five years. Any one person can buy
up to $4,000 worth, maturity value,
in any one year.
Because many people hesitate to tie
their money up for any long period.
and feel that they may want it to
meet an emergency. provision is made
for the redemption of treasury saw
ings certificates at any time after one
month, and interest will be paid at
the rate of per cent, simple interest,
on the money invested. Redemptions
OF treasury savings certificates are
not anticipated in any large amount
by the treasury officials. as the rate
OF interest which they earn, apd the
tax exemption features, make them
one of the most attractive savings Sc
curities to be Obtained. That people
are of a thrifty turn and inclined to
save, is shown by the fact that more
than six hundred million dollars in
war savings stamps, purchased iH
1918, have been held to maturity. over
a most trying period OF time.
Continuing the thrift and saving
program of --a-ltimes the treasury de-
partment has adopted a plan which
seems best fitted to meet present con-
ditions thruout the country. It has
offered savings security which goes
as far as possible, in interest yield
and which affords investors an op-
portunity to save their earnings in
small amounts ana invest them in
gilt-edged government securities.