The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1945-01-10
Observations
National, Private
Debts Not in Same
Categories
BY HELEN EssARY

II klAfh EbllAA AAAAAs tbN1h ttt.
ance I'd be able to answer one OF
the letters that came TO me this
morning The letter from an an
onymous Edith S. is about for
eign bonds.
Il cannot understand this foreign
bond situation writes Edith :.
Especially the South American
foreign bond situation. My uncle
left me some bonds which he hoped
would be valuable.
Il went to my bank yesterday to
clip the coupons on the bonds and
turn them in for United States War
Bonds. found half the foreign
bonds were no good. I've talked
the matter over with several broN-
ers and other experts and | slmp'
ly can't make head or tail OF the
thing.
II my uncle bought foreign
bonds secured by. Wen say the
Republic OF Bolivia, why are those
bonds no good today Where did
my uncle's money go?
THE government OF Bolivia
pledged Itself for those bonds What
do ! care II. as one broker told
me, a certain Bolivian president got
excited used the money OF United
States investors TO build roads so
his son could drive big cars there
on and then was thrown out OF
Office by reyolutionist.
What difference does that make
10 rlo? | do want TO know, how
eve.. ny we keep on with Lend
Lease )r such irresponsible peo-
pie.
Brazilian bonds-and I've got
several Of those things-are very
wobbly. too. Why? | thought Bra
2il was a rich country with UNI
touched wealth all over its hills
and valleys. And plenty OF Lend
Lease for oiling the machinery
Then why should my Twenty-one
Year External Gold Bonds of 1871
be repudiated or have they been
repudiated? What goes on any
how?
Brazil. so a Department Of Com
meree bond expert told me, Is
offering two plans TO holders OF
its 1851 20-year gold bonds; In one
plan exchange a bond assured by
the government OF Brazil as worth
$1,000 for a bond which the govern
ment OF Brazil now says is worth
at its best only $3.50.
Also. instead OF getting the s25
interest my uncle was promised
twice a year. the new bond will
And we are supposed 10 take
this sort OF thing calmly and say,
Isn't it too bad, Poor Bra Il IS
having trouble with its finances"
What kind Of a hocus pocrs Is
this? tell you I'm pretty mad.
I've got to pay terrific income tax
in a few days. So does everybody
else. Then why shouldn't We get
a little tough with countries who
go back on their investors instead
of handing them over some OF the
money you and pay into the In
ternal revenue Office.
i've no doubt that you'll think
I'm pretty silly to write as l do.
Maybe l Just can't comprehend
what is happening. You'll say no
doubt that Brazil and Bolivia
aren't the only countries that are
weak in their financial knees. Ger.
tainly other South American coun-
tries have forgotten the investors
they lured in on the promise OF an
eight per cent interest.
Maybe my uncle was little
greedy. Certainly. United States
investors were inspired to buy for.
eign bonds because OF the faulty
wording Of the Aldrich-Glass IN
come tax law OF 1918 which said
that government bonds should be
tax exempt. What was intend I'd
to be sailor was twas that
holders Of United States govern.
ment bonds should be exempt
Anyhow the bait worked. My
uncle and hundreds OF other peo-
pie swallowed it, hook. line and
certainly sinker. And then what
happened: In some Of the fore gn
countries the party IN power that
had placed the loan was thrown
out. The new crowd said. What
our predecessors did IS no fault Of
ours.
II couldn't be more confused
about everything. Ration points
and the value OF money and secur-
tiles do make my head swim.
There's one simple sentence on a
bond that can't get It's that one
that says something about a sink
ing fund. Good money phrase,
Sinking fund. Has it anything to
do with social security
You remember how pleased we
used to be about social security
What boz" of that money that
used TO off your pay check
for tho "urity fund that was
10 T. z all of US In hard
TIM ell me that the mil
lions q for social secrrity
haze p ito the common gov
eminent ~ What becomes OF II
afterwards mt isure ANYTHING
out. You tell no. Edith s"