The midland journal. (Rising Sun, Md.) 1885-1947, 1945-03-02
Rumors Whispering
Of Reputation Are
Vicious Propaganda
BY WALTER A. SHEAD
WNU staff CORRESPONDENT.

Approximate % ,UUU,UUU
American citizens have bought
war bonds. That number is al
most twice as many as the total
of voters in the last national
election. And that, it seems to
me, is the best answer to the SUBJ
versive propaganda that the
government might repudiate
payment of war bonds.
It's the best answer from a prac-
teal standpoint, because repudi-
alton must be voted by the congress
and no congress in its right political
mind would vote to nullify the Al
billion-dollar holdings of IS million
Americans who have purchased $780,
389, 300 individual and separate war
bonds through January l, 1945.
Add to this Al billion dollars in
war bonds approximately 1877 billion
dollars worth sold in other govern
mental bonds and securities over the
same period of time to banks, cor
porations, insurance companies and
other large investors, and you have
another added and compelling rea-
son why no congress will ever vote
reputation of these governmental
obligations sold to aid in financing
the war.
These war bonds and other govern
ment securities have behind them
the security, the faith and the integ-
rity of the United States government
exactly the same guarantee of
payment as a dollar bill. And if your
war bonds should become worthless,
then your dollar bill will become
equally as worthless. And we have
behind war bonds a tradition and
record of the United States govern
ment of never having repudiated an
obligation in the 165 years Of its ex-
iStence.
And right here let's spike the fall
lacy in the minds of some people
that war bonds are being cashed in
at an alarming rate. They are not
being redeemed in any such
amounts. When someone sees line
of people at postoffice window or
at a bank counter cashing In war
bonds, the story is Immediately
spread that people are cashing in
their bonds at an unprecedented
figure
Only IL Per Cent Cashed.
When the treasury department
publishes its statements, for in
stance, as last October when sales
totaled $685., 0OO, 900 and redemptions
totaled $400, 900, the story was
Immediately broadcast that people
were cashing in their war bonds at
ratio almost equalling sales. AS
matter of fact, the redemptions
last October were only Lie per cent
of the Sotal bonds outstanding.
In October redemptions were un-
usually heavy for the reason that it
was the first month in which banks
were authorized to redeem bonds
over the counter direct, and many
persons had the mistaken idea that
the treasury was inviting these re-
demptions because 1t was made so
convenient. When this impression
was dispelled, redemptions steadily
declined. November redemptions
were 1903 per cent; December, .9S,
and January redemptions went down
to $50 per cent.
Total cumulative redemptiOns of
war bonds, that is the series E, F
and G bonds, as of January I, 1945,
amount to 12.04 per cent Of the
total bonds sold.
1t means that out of the Al billion
dollars in war bonds sold, about So
billion is still in the hands of the
people who bought them. Or in 9th
er words about IL cents out of each
dollar spent for war bonds has been
redeemed.
Money for Taxes Needed.
Certain months of the year, such
as the taxpaying months, always
show heavier redemption percent
age than other months. The treas
ury policy from the inception of war
bond sales has been that the whole