Evening star., 1923-01-02
Securities and Savings.

Secretary Mellon. in a New Year
message to the American people, urges
greater saving and consideration for
the Treasury's needs through pur.
chase of the certificates which the
Treasury is Offering in short.ternl
loans. These new certificates, he
points out. are issued in denomina,
tionse small enough to meet the de-
mands Of all classes of investors. This
is not so much an appeal for subscrip
tions. which will undoubtedly in the
case Of every Treasury issue exceed
the amount required. as it is plea for
thrift. The Secretary says:
1t would be little short of a national
calamity IL the lessons of thrift and
sound investment learned during the
war SHOULD be lost In these days OF
reconstruction. when the need of
avoiding waste and extravaganza is
as great as ever Treasury savings
certificates will help the government
to finance the debt left by the war.
But they will do more than that: they
will afford an opportunity to the peo-
pie of the country to save from their
income. and. by investing regularly In
government securities, to- build a
FOUNDATION IOF nnanclAl lnQe-
pendence and success.
During the war the people Of this
country spent their savings, and more
than their savings, In all forms Of gov.
ernment securities. Some of them Dor.
rowed money to buy bonds. and in Dor
rowing learned perhaps their first les.
son in finance, that credit is capital
and that a debt is sometimes a good
investment. They found out that they
had more of a margin than they had
thought. that they could save even
when saving seemed impossible. Some
Of them lost courage or yielded to
temptation and spent their savings for
luxuries, and some were forced
through misfortune to liquidate to
meet emergency charges. But the ma.
jority of them held their wartime Sc.
curities even when the falling prices
tended to frighten them.
Now Secretary Mellon pleads for a
continuation of the wartime thrift
and the purchase even now in peace.
time Of government securities that, of.
fered in small denominations and on
attractive terms, give everybody a
chance. A 500 Treasury certificate
held by an individual is decided asset
for national thrift and prosperity
while a thousand times that amount
held by an institution merely means
the supply of funds to the govern.
ment.
A saving nation Is prosperous ma
ton. Americans are only spasmodical.
ly a saving people. They are rather
spending people. They spend liberal
ly and generously. They have just
spent enormous sums in Christmas
giving. 1t is estimated that $3.50, ,000,-
600 changed hands In New York city
alone in holiday buying. OF course.
this trade makes for business, stimu-
lates activity, gives employment, keeps
things moving. 1t Is not to be depre.
Gated. 1t is good for the national eco
there must be saving to permit such
expenditures. Practically all banks
now have Christmas savings clubs
through which by means of regular
weekly deposits the people accumulate
in the aggregate enormous sums of
money during the year for Christmas
time spending. Bond purchases or Sc
curity buying do not make for such
funds, but they make. for good finan-
cial, habits, and 1t is for the formation
of the maintenance of these habits
that Secretary Mellon now pleads in
his message to the people.