Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-04-23
LIBERTY BONDS UPWARD
TREND GOOD INDICATION
1T Is a Reflection of Easier
Money" Says Director
Eugene Meyer, Jr.
PURCHASERS HOLD TO noNps
hoSf "f TrnIing iIns been by Banks.
h"sinrss Wen Viewing Bondx m.
Shtr Investment. Have Thrown
Few on the Market,
By Clayton wbitcb,,I.

United News STAFF Correspondent
w : II G 7 o y, April ETH.
steady upward trend in the price OF
Liberty bonds during tho past six
months, in the opinion of high
treasury officials. is an indication OF
substantial business recovery. Sno-
citicalty. according to Eugene Meyer.
IT. managing director of tho War
FINANCE Corporation. 1t is "a rcnec-
ton of easier money"
In periods OF depression follow
ing crisis said Meyer. money tends
to How into the safest form of Sc
safest security in the world.
The once despised il-4 per cent
IS now very welcome.
Although conditions are i'm
proved. Industry and business are
stili slow. and wherever idle funds
accumulate their holders are seek
ing safe Investment"
Taking Up the Slnck.
rms gain, officials pointed out,
represents rather a rise in the bust
ness barometer than direct factor
In business improvement. 1t repre-
sents the combined efforts of thu
government and individual corpora
tons to take up the slack in the
investment market.
The governments contribution is
Increased retirement of Liberty
bonds to build up the accumulated
sinking fund.
However, the 1S.6O0.2sS purchasers
OF $50 bonds in the four Liberty
loans and the Victory loan, are for
the most part thought to be keep
ing their bonds until maturity. And
those individual subscribers who
were forced 10 sell their bonds when
the market was low are not ro-pur-
In L ~.
tent.
Rise Ten Points In Six Months.
Bonds have gone up about ten
points in the last six months. and
this increase would mean n profit OF
some $lS0,000.0O0 for bond holders.
But this profit has been reaped
largely by banks. and in Il few in
stances by holders of big blocks Of
Liberties. The bond tuyer who sub
scrihed at the theater OF through
other popular wartime means. has
tucked his $50 or 500 bond In the
safe. lie has even forgotten to cash
In his coupons, Treasury experts
have discovered In checking over
coupon receipts This. 1t was said. is
illustrative OF the public attitude to-
ward the war loans. For IA majority
Of the people they were an adven-
turc In investment. and as such have
been put TO sleep"
bonds has taken place, 1t was said.
has been confined to banks. Busi-
ness men, apparently viewing the
loans froD the standpoint OF the
small investor, have thrown few
bonds on the market unless obliged
to do so.
Instead of being m active part
OF the bond business. experts de-
clared. the Liberty bond market has
ben an Isolated activity wherein the
law of supply and demand has
operated almost Independently OF in
dustrial % stock market ups and
downs. When there were plenty OF
bonds on the market. the govern
mcnt went in and bought large
quantities for its sinking fund. Fed
cral reserve banks or member
banks. DESTROYS OF increasing their
security, also bought
or the Soi,0I2,lll. 400 subscribed to
the four Liberty loans and the Vic
tory loan. SlS.iT2,S2i.600 was out
standing on March 1.-The latest
Treasury estimate.