Evening star., 1932-03-17

Country-wide discussion of the baby
bonds" issued by the Government as
an effective substitute for boarding, en-
phasizes the fact that they have place
in national finance which is entirely
new. 1t is shown that they are not
intended to meet the needs of the Gov
ernment. but rather to aid the people
and to draw money from hiding. Nat
ural pride in ownership OF such securl-
ties. their flexible character, and the
fact that they represent form OF cur
rency which bears interest are cited as
qualities which should appeal to the
buyer, The additional merit that the
money paid remains in the banks Is
cited as another point in their favor.
THE Treasury Department makes II
clear" according to the Oakland 1rlo-
une, "that it does not treat 1t as an
intensive drive to sell the new certif1-
Gates. as the Government does not need
the money as it did in the days Of the
Liberty loan drive. 1t is announced that
the banks may rely upon retaining the
money from the anti-hoarding certifl-
Gates for a reasonable length of time,
and that it is the desire Of the Govern
ment to have the banks qualify as de-
positaries and subscribe for them on
credit rather than a cash basis. AS the
nlan will work out, the Treasury believes
the banking structure will be strength
ened by the same move which will end
boarding"
"The equal as a financial force has
not existed in the prior history Of the
world" says the Detroit News, with the
explanation that mustered behind are
- nf the Tinted States
Government and the Nations entire
private financial organization" The
News also states as to the character OF
the system introduced: THE novelty
added to the United States fiscal system
is obvious. The Government guarantees
redemption of the bonds at any time
at par and accrued interest, an abso-
lutte assurance against depreciation.
Market fluctuations are ruled out. A
$50 prosperity bond will serve as a $50
bill serves-and pay interest besides. In
denominations of $50, 500 and $500
Uncle Sam issues the virtual equivalent
Of circulating money which pays inter-
est. If it Is asked why only per cent
is paid, the conclusive answer Is that
no more need be offered for such q
special security. For the custody OF
boarded money Uncle Sam does not
need to outbid the banks and the Pos
tai Savings System"
4 4 II
at is a heap better to have your
money in q Government certificate than
in on old sock" thinks the Charlotte
Observer, and the Scranton Times re-
marks that instead of permitting
money withdrawn from the banks to
accumulate dust, hoarders can, by in
vesting in baby bonds be assured OF
some return, at the same time knowing
that the stability Of the Federal Gov
ernment is behind these securities"
The hoarder of currency" remarks
the Providence Bulletin, not only will
have the assurance of getting his money
back dollar for dollar but of getting in
addition interest for such time as he
Times suggests: 1.-THE widespread de-
sire to own bonds contributed in no
small degree to the success Of the Lib
erty loans of war days. The Federal
Government Is now providing another
opportunity for qualification of that de-
sire" The Times adds that the bonds
should appeal to a citizens patriotism
fully as much as the war bonds did, for
they are being issued as part of the
battle against depression, which Is quite
as dangerous as Germany was"
This method should be accom-
panied" advises the Des Moines Regis
ter, by a clear understanding that this
is not the setting Of an example; that
it is not to be emulated in the future by
every administration that happens to
suffer temporary fiscal embarrass-
ments.'
"Under the new Ohio tax law" COM
ments the Toledo Blade, you are taxed