The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1922-03-23

among the people generally. OF course
the war profits were tremendous and
the profiteers filled their vaults; but
the people did not participate in those
kind Of favors. The people have &C
tually been dictated" and their SO
called tssavings have been garnered
in. Their liberty bonds for which they
sacrificed with d glow of patriotism
and pride have all gone. To where
have they gone? They've passed thru
the bottle-neck and have gone into
the vaults Of the big banks and finan-
ciers. Only a little sprinkling has
been left over the country. Perhaps
a few of the Victory Bonds have been
left.
These Victory Bonds mature on May
20, 1928, unless called for redemption
before that date. They have been
called for redemption. That would
sound very good. We are always glad
to know that our. national debt is be-
ing reduced, if it is being reduced.
During the month of February, how
ever, it actually increased.
There are two classes of these vic
tory notes. One bearing 8 ga per cent
interest. These are exempt from the
Federal surtax on incomes. The other
bearing a Sd per cent interest. These
are not SO tax-exempt. Please note the
difference in interest rate. The Treas
ury Department has adopted a pol
icy of distributing the short-dated
debt, including these Victory notes,
over a series of years ranging from
1923 to 1928. Pursuant to this policy
they have recently authorized short
term three years, notes bearing 4 ga
per cent interest. At the same time
they have called for payment these
8 ga per cent Victory notes.
Immediately you raise the question
Why call a debt bearing only 8 3-4
interest and at the same time create
another debt bearing a 81 per cent
interest? We r answered that there
is no real difference to the govern
ment in dollars and cents, because
the 8 Sd per cent Victory notes are
not tax exempt. The Government gets
the difference in taxes (?) Does it?
If this is so it is a startling con-
fession. 4 ga per cent notes is an
increase in interest rate of rs 2-3 per
cent. In other words, we are told that
it takes rs 2-3 per cent more interest
for non tax-exempt bonds than it does
for tax exempt. In other words the
man who buys our Government Sc
curities must have an increase in in
terest rate of rs 2-3 per cent, in order
to take care of his income surtax.
That would indicate a class of very
wealthy holders, of our Governments
securities.
Nh. Average Citizen usually has to
pay only 4 per cent income tax, but by
this disparity in interest rates on
these two different classes of bonds,
the Indication is that these interest
rates were legislated in order to take
care of the man who pays big income
taxes and on the assumption that only
the big bankers and financiers and in
situations would be able to buy these
securities.
That is practically the truth. Della
ton has made it impossible for the
average citizen to become an investor
in his Governments securities. The
big banks have accumulated the liq-
uid wealth, and they only can pur-
chase under the existing system.
Therefore the laws are made to take
care of their interests.
This manner of refunding the Vic
tory loan has not only placed out a
! Government security bearing a high
err interest rate which security has
evidently been sold to the big bank
er, but it has also brought from
among the people the few remaining
Victory notes that they had left. When
the Government called them for re-
demption the people of course had to
turn them in. The people are not buy
ing back these short-term Treasury
Certificates that are being issued to
raise the money to redeem these Vic
tory notes.
| Thus the system goes on gradually