The Waterbury Democrat., 1941-03-15

OIl up " VVOu dLlQ pkbUVUs 4LlcIc will be no limit to the issue.
 The big idea, of course, is to do what the Liberty Loan drives did In the last war, raise money for defense expense. The formula this time, however, will be modelled on combination of the U. s. pos- tai saving stamp and the treasury department baby bond plans, al- ready proven successful in raising almost s billion.
 In skeleton form, the organiza- ton to handle this new phase of defense financing is being put to- gether. Harold N. Graves, now as- sistant to the secretary of the treasury, will head the drive, working directly with Secretary Morgenthau and Under-S Secretary Daniel W. Bell.
 NO
 RISK
 Dale Johnston of St. Louis, re- gional manager of Metro. .olitan Life Insurance Company, all expert in group cooperating organization, and Hartford Powell, former editor of Golfers and now with Batten, Barton. Durstine and osborne ad- vertising agency In New York, have been sitting in Gs consulLants on organization plans and may be put in charge of sales work In the field, and promotion.
 The treasury has asked Congress for $3 million to finance the cam paign from now til July 1, and will get at least that. Making the posters, arranging for state or ganizations, distribution and bally- hoo are held up, pending necessary appropriations. As the engraving and printing of the stamps and bonds will cost as million, there won't be much left for promotion and salaries If Congress sticks to the million and a half figure. That isn't stopping the drive, because the American Bankers Association, Investment Bankers Association and the savings banks have vol- unteered to help with the sale, figuring that this type of defense financing offers them no compe- tition.
 While the Liberty Loan drive of the last war, raising $20 billion from 66 million subscribers, was the biggest thing of its kind, the new saving stamp-baby bond plan offers advantages that the Liberty Loan plan didn't have. Particu- larly, there won't be any specu- lative risks. Stamps and baby bonds all have fixed value. They can't be traded in. They are reg istered and non"negotiable. Only the original purchaser can cash them, and can do that only by surrendering them at postofflce or certain designated banks, and waiting 24 hours. The banks will get nothing for handling the trans action.
 YOU CAN DO
 IT WITH DIMES
 There will be no quotas for states, cities, offices. or factories. In the Liberty Loan drives, everyone who bought got button or a medal, and anyone who didn't buy as much as the community thought proper, was socially ostracized.
 The new setup will work out about like this:
 Anyone having dimes. quarters, four-blt pieces or dollars he doesn't know what to do with will be entitled to buy the interest bearing defense saving stamps The stamps can be pasted on cards or in books, which will be provided free.
 When this stamp collector has accumulated up to $l8.75, he can trade the stamps in for baby bond which will have a face value of $25. That is, 1t will be worth $25 If the owner hangs on to 1t till it's due, ten years later.
 Of course, if the purchaser has the $l8.75 in bunch, he can buy the bond without the stamps, di- rect. or for $37.50 he can buy a 0UU UOlluy ullQ oO OAl' AhdAFASduAo' however, will be limited to $3,00o worth of bonds apiece in order to spread out the purchasing.
 For estates and trust funds there may be larger denominations de- fense bonds - $5,000 and $l0,000 - but the interest rate will be lower and the limit on these will be $50,000. The baby bonds and stamps have an average yield of about 2.9 per cent interest, com pounded semi-annually, but the rate varies, depending on how soon they are turned in. They may be turned in at any time, 60 days after purchase, but the longer you hold them, the more interest you get.
 With as democratic setup as this, you may soon figure on go- ing into the grocery store. throw ing down a buck, and asking for "a can of beans, a loaf of bread - and the change in defense saving