The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1922-04-18
HOLD ON TO YOUR
GOVERNMENT SECURITIES

Keep your war savings stamps"
is what Lew Wallace, Jr., director of
savings, treasury department, says to
tn people who hold such government
securities. do not allow these saw
ings to pass into the hands of specu-
lators and suffer a loss" he added.
Hold them until they are due and
the government will pay their full
face value, and the purchasers will
get all that the government intended
they should receive when they invest
ed their money. When cashing their
stamps the people should invest them
in new treasury savings certificates
which have taken the place of the
war savings stamps as government
securities sold in small amounts"
War savings stamps issued in 1918
will mature January l, 1928, and will
be redeemed at par. The war savings
stamps were issued in unit denomi-
nations at So. When purchased the
first month in the year they were
sold for s4.12, and the sale price in
creased one cent each month to the
end of the year. These stamps have
always been redeemable, the redemp-
ton value increasing month by
month in the same proportion as the
purchase price increased. The $500
stamp issued in 1918 is worth Shes
at the present time. Next January
it will be worth IS, difference of 81
cents. Director Wallace takes occa-
sion to warn holders of these stamps
not to sacrifice the, profit between
present redemption prices and the
par value price which the govern
ment will pay, even II the scalpers
offer more than the government
now pays when cashing the stamps.
He believes 1t is far better for the
holders of the stamps to tide over
any pressing necessity IN order to
receive the full value of the stamps,
as the government intended. One
great advantage to the purchaser OF
the treasury savings certificates, new
issue, he says, is that they are not
transferable, and the holder cannot
sell them to the scalpers as they near
maturity.
''lt wouId appear that the person |
who is trying to save is beset on all
Sides" said Director Wallace. Those
who bought war savings stamps were
generally people of small means with
limited savings. For the most part
they we're periodically inclined, and
bought because they wanted to help
the government with money in time
of war. Many of them of necessity
have sold their stamps or redeemed
them at the places of purchase. Now,
those issued in 1918 are approaching
the period of their greatest value, and
the evry ready sharper is trying TO
shave off a part of the savings of |
these people by offering them !
slight increase over the present re- I
demption prices. The governmnt
does not offer pro rata redemption
prices for its savings securities. Its
policy is TO encourage savings; to in
duce the investor to hold until matur-
ity and then re-invest The new is
sue of savings certificates provides
for redemption at any time, paying
3 1-2 per cent interest during the time ,
of investment. But to encourage
these investors TO make the best OF
their savings. interest is paid at the
rate OF IL per rent compounded
semi-annually If the certificates are
held until maturity, which is FIVE
years. Another advantage OF the
new savings certificate is that they
are all sold at the same price no mat
ter what time OF the year they are