Great Falls tribune., 1922-04-15
LIBERTY BONDS AT PAR

LIBERTY BONDS AT PAR
IN RECENT DAYS the Liberty
bond market reached par fol-
practically all the issues and pass
ed that mark for several issues
The three and a half per cent tax
free first issue sold for loo.o6,
This is the lowest interest rate
carried by any Of the issues. II
shows that capital is ready to &C
cept 3H per cent net as its wages.
That is a very low wage for capital.
1t is not often willing to work
for 50 small wage. The reason for
il is not far to seek. Capital has
been lost in many investments in
the past few years. Il shuns the risk
and prefers lower wages and secur-
ity to higher wages promised and
some risk attached. That is one
reason why three and half per
cent bonds tax free sell for par.
Another reason is that capital fears
higher taxes on account OF in.
creasing government expenditures
and extravaganza and it wants tax
free securities. Another reason is
that money is now getting more
plentiful. More people have money
to lend and less people want to
borrow on sound security. All these
things have played part in bring
ing Liberty bonds up to par.
A less satisfactory reflection is
that a good many people who
bought these bonds at par during
the war period were compelled to
part with them during the hard
times that came after the war, and
to do it at a heavy loss. In cases
ten per cent or more under the
price they paid for them. Many
who did this had full faith in the
goodness of these bonds and GER
tainty that they would in time
come back to the price they paid
for them. The trouble was that
they were faced with sudden
emergency Of some kind. Banks
were 10th to increase their loans.
They were therefore compelled to
sacrific these bonds for what they
would bring in a badly depressed
market. A great many purchasers
Of Liberty bonds bought them for
patriotic motives solely. Some put
all their savings into them on the
assurance that they would always
be worth their face, and they could
get their money back on them
when they needed It. We know Of
a few such cases where the bond
buyers fell rather bitter about the
fact that they had to take con-
siderable loss when they sold them.
We don't know, Of course, how
many people bought Liberty bonds
in response to the call Of their
country to aid In winning the war
and then sold them at a loss, but
if they form a considerable number
Of voters they might perhaps or
ganize and get adjusted conpensa-
tion from some congress in the
future.
The fact that Liberty bonds have
gone to par again will be pleas
ing fact to those who have kept
their bonds, and we have good
reason to believe that they far out
number those who have sold out
their holdings. Large number of
people learned saving habits by
this investment in war times, and
have added to their holdings Of
Liberty bonds since the armistice
instead of selling out what they had
then. The reports of the treasury
department indicate that there are
many millions Of government bond
holders in this republic now, where
before the war it was generally
very rich people only who owned
government bonds-outside Of the
bank holdings. These patriotic citi-.
gems that boosted these bond sales
up into the billions Of dollars, CIV
ing their time and enegry for moth
ing to help win the war, will also
be glad to find that their assurances
to the buyers that these bonds
were sound and would go to par
in normal times have been made
good by the recent market quota
tions. 1t also removes a strain on
Uncle Sans credit involved when