Evening star., 1922-09-09

.WELLEsLEY HILLS. Mass. Sep
tenber s.--A great many Of our
readers have liberty bonds and wonder
il 1t is not time to sell them. When
they went down into the SEES people
were frightened and threw them oyer.
Now that they have come up to par.
and bettAr. the same people are buying
more. This h queer little world
In View or the situation Roger ". Bab-
son issues the following statement: s
'It Is true that the time to buy bonds
is when no one else wants them and
the time to sell bonds is when every
one wants them. Hence 1 strongly
recommended the purchase Of liberties
two years ago when they were selling
In tho SOS. 1 am not. quite convinced.
however. that the time has yet come
for selling them. even though they are
acting rather queeriy at the nonent.
worrying Over strikes. :
People are worrying as 70 what
effect the railroad and coal stakes and
other industrial disturbances will have
on the price OF liberty bonds, ,Amert-
cas- greatest and most popular in
vestment. 1t would be only natural
the price of liberties a little; but such
effect would be only temporary. Money
Is destined to be even cheaper than it
is today. and interest rates will con-
tinue fairly, low for some time to come.
This means that banks will again come
into the market to buy liberty bonds.
These purchases by the banks, to-
gether with the purchases OF the gov
ernment, must keep the price up and
quite likely force still higher prices.
Therefore, definitely advise readers to
they will ultimately sell for higher
prices. Be prepared. however, for a
possible temporary decline in order not
to be panic c-strfcken II such a tempo
rarv decline takes place.
The fourth 4As are today selling
at little over par and are callable at
certain that the bonds will be called
at that time. This means that on the
18th of October in the year 1888 these
bonds will sell at par. Not l per cent
above or / per cent below. With
constant interest rate between now
and then the bonds should be at their
hiRhes, point about 1927. or halfway
between now and their callable date.
The same rule applies to all of the
different issues with their various
maturfties. OF course. it is very like
ly that the government will provide
sOHc 6cHcIdi SCHcIHG UeIOTe
all Of the various issues of liberty
bonds are due or even callable. But
II SO. such a plan will be favorable
to the holders. ] certainly advise
readers to hold their liberty bonds
until such a refunding announcement
is made.
after selling liberty bonds be care
full in what you invest. A great many
money sharks will be on the surface
of the water looking for fish when
this refunding plan is put into opera
ton. People are already travelling
about our cities hunting up holders
Of liberty bonds and offering to swap
for them various kinds of stock. Ee-
ware OF such men. Don't talk to them
or even listen to them. Shun them as
IL they had smallpox. When you wish
to invest money ask the bank where
you have your savings account to
recommend some good investment
firms. Go to them: tell them your
condition and put them on their honor
to protect you and your family. In
ninety-nine cases out of a hundred
You will get good honest advice which
will be worth money to you. When
your liberty bonds become due or are
called for payment follow the same
course. Either put the money in the
savings bank or invest 1t in securi-
ties which a good investment house