Evening star., 1933-10-28
Liberty Bond Conversion
Gives Renewed Confidence

Ihe Treasury, in the opinion Of edi-
torlal writer's. has taken a wise stem
IN announcing its purpose to convert
at this time one-third of the outstand-
ing Fourth Liberty Az per cents. OF
primary Importance is considered the
implication which this announcement
carries OF sound monetary policy for
the future.
Ihe 1reasury's decision has evident
ly been occasioned." says the New York
Times. first. by the fact that CONVEX
SION OF sl,soO 100000 of Az per cent
oonds into las would save $4,000 900
in the annual interest charge. and, sec
ono, by the marked success of similar
loan conversions lately undertaken in
Europe The Keokuk Daily Gate City.
however. is concerned over the increase
In the public debt. which such a finan-
ciai operation will bring about. and
points out that the Treasury "is en-
ploying this method to obtain cash for
the general fund. in anticipation not
only OF demands for cash payment but
aisc of the requirements of various
other demands upon the Governments s
exchequer."
The New York Sun considers the Of
Ter generous one. and predicts that
such a strong inducement to CONVEX
Initial
year Will meet with immediate success.
and the New Castle News feels that ito
the wartime patriots who retained their
holdings. as well as those shrewd in
vestors who bought Liberties in 1902.
III some instances as low as IS. the
government grants more than original
ly promised" The Sioux Falls Daily
Argus-Leader. on the other hand, won
oerS whether Congress had any con-
sttutlonal right to say that the Lib
erty bonds should not be paid in gold"
The Constitution" continues that pa
per, directly protects contracts. assert
ing That no legislature or the Congress
car make laws impairing contractual
Quotations. Perhaps someone will be
sufhciently interested to test in the
courts the right of Congress to say
tfat the Liberty bonds should be paid
gold''
For the average man." declared the
youngstown Daily Vindicator, lit means
tnat the Government considers busi-
ness on a sound basis. and that it will
continue upward. Were the trend of
business reversed. going downwards. and
prospects ominouS, the Government, in
stead OF offering lower interest on its
"A per cent bonds which mature next
April, would be obliged to offer con-
siderebly more" The Charleston Eve
ming Post looks upon the Governments
plan as likely to prove "a beneficial and
stabilizing factor in the investment sit
uation," while the Miami Daily News
calls attention to the fact that under
the strain of the times, real estate as
a basis for credit has broken down.
Stocks have done no better. Industrial
credit has been impaired. The one
value which has stood firm" says the
Daily News. has been the obligations
OF the United States. 1t is on that
foundation that recovery must be and
Is being built. Wise were the men
who said that the credit of the United
States Government must not be i'm
paired"
THE large demand for every new
issue Of low-interest Government obli-
gation," is cited by the San Antonio
Express as evidence of an aboundinp
confidence in the stability of the ma
tional credit, Notwithstanding the sus-
pension of gold payments and the
necessity for continued heavy borrow
ing" The Tacoma washington Daily
Ledger compares the small demand for
French bonds based on gold with the
much greater one for American unse-
cured bonds, and concludes that Amer
lea must be regarded as fundamentally
sound"
In the opinion Of the Newark Eve
ming News, the move is along orthodox
lines, and caIries its own indication
that the denMeion Of the administra-