Milford chronicle., 1944-11-17

4 unemployment. We have no acct
rate explanation of these crowd
9 at particular places. But we do ne
T believe the demand will spread o
! continue if the public maintain
, the same responsible attitude to
wards its part in financing the wa
in which its young men are S
brilliantly and heroically fighting
as it has shown in the past.
Let us look at the facts for
moment, so that we shall not eX
aggerate what is taking place ant
therefore cause hurtful uneasiness
1t may be good to simplify thu
record a bit without distorting 1t
so that we can more easily remem
ber the essential facts as compiled
by the Treasury. Let us take the
little bond, the Z bond, which is
bought by the person of smaller
means and therefore is the more
likely to be cashed in. From May
1871, to Sept. 80. 1914, sales of E
bonds 1.-THE peoples bond")
amounted to $26.8O0, 100000 tissue
price plus increments). In that
same period $500, 100000 were re-
deemed, representing 1S per cent
of sales made. Therefore, you see,
about 81 per cent of sales have
stuck as true investments. That is
a good record, and it may be i'm
proved as the public comes more
to regard the holdings of war
bonds as a pledge of support to its
fighting forces as well as a good
investment.
We should not expect to see the
volume outstanding increase with
out an increase in the amount of
redemptions. Remember. these
bonds are bought by individuals
who cannot plan their future with
precision and who must and will
meet human emergencies out of
resources available to them. The
more of these bonds we buy the
more we shall have to regard them
as our emergency reserves because
we shall have less of other re-
serves available, or indeed none at
all.
The experience of savings banks
is that as many as 25 per cent of
those persons who open savings
accounts close them within year
OTTER opening. One half of these
hOpe-to-be- savers close their ac-
counts within four years. Never
theless, the amount of money in
savings banks increases steadily
although large sums are with
drawn by some savers at the same
time as new deposits are made by
others, which is natural and due to
the very purposes for which saw
ings are undertaken.
Deposits Exceed Withdrawals
Here is a single comparison be-
tween the conduct of savings de-
positOrs and war bond buyers: In
the first nine months of 1914. Is
per cent of the total deposits in
New York State savings bank were
withdrawn, but current deposits
exceeded current Withdrawals by
So per cent. In the same months
sales of L bonds exceeded redemp-
tions (withdrawals) by 369 percent
and the amount redeemed amount
ed to only per cent of the total
outstanding There is nothing to be
alarmed about here; up to now at
all events. But, of course, the
amount of redemptiOns will in
crease in proportion to current
sales as the total outstanding vol
ume increases. II may indeed in
crease even in proportion to cur
rent sales. if we lose our jobs. or
have pressing need of these saw
ings. especially at income tax pay
ment dates.
Those who look at the whole pic
ture and are in a position to give
advice. such as all bankers. most
employers and labor leaders,
should remind war-bond buyers
that they are the main prop in the
whole war financial structure be-
cause they give the widest base to
the great financial strong point
which we must build and keep in
tact to win the war.
Some Lock Money Up
Bond buyers have helped them
selves avoid silly and irresponsible
spending by locking un money in :
vested in far bonds for ten years.
That is fine, constructive and pa
triOtic They have grasped for
themselves and their dependents
this most favored opportunity for
in which they get a
rate of return of almost ! per cent
more for ten-year lending than
the government pays in the open
market when it sells regular Trea-
sury bonds for that term in 81, 1000 ,
to $1,000,000 denominations.
We have in buying Z bonds sent .
word to every soldier and sailor
that we stand behind him to sup
ply the implements without which .
he cannot fight nor win.
Based on all the foregoing, isn't .
it right to conclude that instead of |
taking cynical, critical or carp
ing attitude when we hear that war
bonds are being redeemed we re-
that certain amount of .
is inevitable and that
it actually stimulates sales to have /
redemption made easy? Let us
remember that we are creditors of .
Uncle Sam and when we redeem
a bond we call his note and say,
Give me my money back, no
matter how much our fighting men
need tits nOt nv husinacc IN FL