Evening star., 1943-04-12

how our national production is meet
ing this demand
1t is estimated that goods pro-
duced in this calendar year will total
at the present price level $l75,OO0,-
100000. OF these 100000, 900 900
worth will be used for the armed
forces. And SIS 900 900, 900 worth will
be equipment necessary for replace
ment for our railroads and public
utilities. That maks $105, 900 900 900
worth of goods - for the armed
forces, railroads and utilities and
other replacements-before the pub
lie supply. That leaves $4,000, ,00o,-
600 worth for the public.
But the public Is going to have
500 900, 100000 in spending money
from the national income-$26,0 ,000,-
000,0 more than there are goods
to purchase. That is the 'inf1ation-
ary gap" you have heard so much
about. 1t was put at $4,000, ,00O, 900
last year, and you know the price
increases We experienced, despite
controls, in that period.
The Treasury is offering an at
tractive basket of securities at this
time when all interest rates are low
on the type of securities that trus-
tees feel confident in buying for
widows and orphans" as invest
vestments safe over long periods to
come.
Most important in the fight
against initiation are the Series E"
bonds, with which most of our
public is now familiar as workers
are accommodating them regularly
through payroll deductions. Their
maturity value is $25 to $1,000 and
they are sold at $1875 up. They
can be redeemed for cash prior
to maturity If the holder becomes
hard up. Unfortunately, many Of
them were cashed early this year
to pay income taxes, defeating to
that extent the Governments ef-
forts to close the "inflationary gap"
They cannot be sold and they can
not be used as collateral. So these
bonds take money out of circula-
ton. The Treasury has sold more
than ss,ooo,0oo,ooo worth of them
so far.
individuals Are Limited.
Individuals are limited to the pur-
chase Of $1,000 in these bonds in
any one year. They carry a higher
interest rate than Is allowed to the
owners and custodians of "big
| Tp%nraef -
per cent If held to maturity. big
money" gets 25 per cent.
There are two types of bond for
wealthy individuals or corporations
that are anti-inf1ationary. That is
they are not saleable on the open
market and cannot be used as COL
lateral. Series F." Of which the
Treasury has sold about 81 900 900, :
900 worth, bears 2.53 per cent in
terest. They are like the "E" bonds
in that interest Is not paid until
maturity. Series G" bonds. OF
which the Treasury has sold about
$4,000 10000 worth, bear rs per
cent interest. which is paid by
Treasury check every six months.
Investors are limited to the pur-
chase of 100000 worth Of these
bonds in year.
Remembering our experience In
the last war people sometimes ask If
the rates on Government bonds may
not be higher for later issues. They
ask, should they wait. The answer
is no. The rates will not be higher
And If the public waited disastrous
imitation might occur.
We are not going to make the mis-
takes We made in the last war when
succeeding issues bore higher rates
to the detriment Of prior issues. At
the start of the last war there was
not enough money. In this war
there is too much money.
In the last war we sold Liberty
bonds as open market securities
which could be used as collateral.
In too manv instances u,here tho