Imperial Valley press., 1935-06-04

Local sale OF OIllIeu oCdIco od'-
ings bonds, or the so-called baby
bonds" is holding up we'll though
showing a slight falling off, ac-
cording to Postmaster Frank Rich
mond. who today made the follow
ing statement regarding the bonds
and what they represent so that
local citizens may have a better
understanding of the opportunity
given them by the government to
save money by purchasing the "ba-
by bonds"
Bonds are issued in denomina-
tions of $25, $50, $100, $500 and
$1,000.
"Those are their maturity values.
They mature in 10 years. The
prices at which you buy them today
are:
S18.75 for the $25 bond.
| $3.50 for the $50 bond.
$75 for the 500 bond.
S375 for the $500 bond.
$3.50 for the $1,000 bond.
"The difference between what
you pay for the bonds today and
what you receive in 10 years rep
reSents the accumulation of inter
est, compounded semi-annually.
; Instead Of paying you the interest
semi-annually, the government adds
all of it to the principal and pays
you the entire sum at the end OF
| 10 years. BY this arrangement,
the amount you invest in the bonds
/ increases exactly one-third. or
33 1-3 per cent if you hold the
bonds for their full term of 10
years.
Explains Value
you can easily check my arith
metic on this point without the aid
of pencil and paper by referring to
the $100 bond 1t sells for SIS now.
In 10 years it increases in value by
$25. Twenty-Five dollars is one
third of $75. The same ratio of
increases applies to all of the bonds
the smallest and largest alike. This
type of security was devised be-
cause of its simplicity and conve-
nience for those who wish to put
l
ture need The owner Of this bond
knows exactly what it will earn
for him. He never has to bother
about it from the day he buys it
at the post office until the day it
natures. He doesn't have to re-
member when to clip coupons, be-
cause there are no coupons. He
doesn't have to reinvest his inter
est because it is already reinvested
at compound interest. He doesn't
have to worry about his bond be-
ing stolen or lost or burned up
because it is registered bond. The
owners name is written on it and
a record of that name is kept by
the government. In short it is not
just bond but his bond.
If a thief should steal one, nc
would be wasting his time because
the bond is not transferable. That
provision also protects the bond
against any change in price. It
cannot depreciate In value. The
United States treasury will redeem
any bond on the request of the
owner. so days or longer after the
date of sale. and return the full
purchase price. This provision was
made because, among many thou
sands of purchasers. there arc GER
tain to be few who will encoun-
ter unexpected emergencies and
need their money Immediately.
"a bond that is returned within
q year of the date of its issue will
earn no interest at all. Thereafter
lgraually increasing earnings will
be paid on redemption, the exact
amounts being set forth in a schcd-
ule which is printed on the bond.
The amount of earnings and the
rate are greatest if the bond Is held
for the full term of 10 years. This
type of bond is planned primarily
for the small investor, who will
hold it until it natures in 10 years
and thus reap the full yield.
THE bonds are exempt, both as
TO principal and interest, from all
taxation now or hereafter imposed
by the United States, any state, or
any possession of the United States,
or any local taxing authority, eX-
cept for estate or inheritance taxes,
surtaxes, excess profits taxes and
war profits taxes.