The border vidette., 1923-06-02
GIGANTIC LOAN.
y. S. Treasury Savings Certificates
Now For Sale.
written for The San Francisco
Chronicle by John u. Calkins)

Chronicle by John U. Calkins)
Yesterday, May 20, 1923, mark
ed o signal event in the fiscal
record of our country.
It was the final settlement or
maturity date of the most gigan
tic obligation which has ever
matured in the worlds history
the great Victory Liberty loan
Offering by the United States
Government during the spring
of 1919. This was issued in the
shape of four year Victory notes
aggregating the stupendous sum
of four and one half billions Of
dollars gold, about four ifths of
which drew interest at the rate
of A per cent per annum, com
pounded semi annually, and the
remainder at 81 per cent.
The two most remarkable fea
lures of this monumental piece
of Governmental financing we're:
First, the loan was nearly II per
cent over subscribed by the
American public during the
three weeks-April 81 to May
10-which comprised the sales
period commonly known as the
Fifth Liberty loan campaign;
and, second, this last of our
great war loans was approx
mately 81 per cent repaid by the
Government to subscribers con
siderably before the money was
due and payable.
In short, of the $4, 495, 374, 800
of Victory notes issued, only the
comparatively small sum of
about 5000, 100000 were still out,
standing after surrenders in re
sponse to the Treasnry's call for
redemption of the three and
three fourtbs per cent notes on
June Is, 1922, and the four and
three fourths per cent notes "a
to F inclusive) on December Is,
1922. The great bulk of the
Victory loan, therefore, was re
tired before majority through
cashing or refunding operations
and by purchases iu the open
market where these securities
had to take their proper place,
and like other securities be sub
ject to the law of supply and de
mand.
The significant thing that this
truly remarkable achievement
emphasizes is the unquestioned
value of United States Govern
ment securities because of the
absolute safety of both principal
and interest which have always
been regularly and promptly
paid in full when due-and even
before due, as has been so mag.
nificently demonstrated through
the expeditions settlement of the
entire Victory loan issue.
It is we'll recognized that in
dustry, safe savings and sound
investment form the basic sup,
port and secure foundation of
the business life of both the in
dividual and state. Therefore,
the interests of our vast army of
small savers are very properly
matter of vital concern to our
national Government. Millions
of dollars of their hard earned
money are wasted and lost an.
nually in get rich quick sch
emes. People are generally im,
perfectly informed on invest
ment matters and the lure of un
usually large returns frequently
results in their being victimized.
Much money is also boarded,
hidden or kept in insecure places
and therefore fails to perform
it's, legitimate Junction. through
thus withheld from circulation.
The Government is particular
~ deSlrOus, therefore. or getting
as much as possible of the money
coming back to the holders of
redeemed Victory notes reinvest
ed through purchase of the 1928
issue of Treasury Savings Ger.
tifcates, which mature five years
from the date purchased and
yield per cent interest, com
pounded semi annually. They
are free from all state and local
taxation Except estate and in
heritance taxes and the normal
Federal income tax.
Treasury savings certificates
can be bought at all money or
der post offices in denominations
of $25 (for $40 5O) 500 (for $82)
81, 900 (for $500 from the Fed
eral reserve bank of San Fran
cisco or its branches and through
most other banks; they are sold
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