News from the

April 26, 1919

Page 1

"REAL INVESTORS" TO BUY VICTORY BONDS

The general executive board of the Victory loan for the Twelfth Fed­eral Reserve district asks publication of the following:

"In reaching a determination as to the various characteristics of the Vic­tory Liberty loan, particularly as to rates of interest on the notes at the limitation of the amount, and the re­jection of over-subscriptions, the sec­retary of the treasury had in mind, especially, the great importance of in­suring a wide distribution of these notes to real investors, so that they could be paid for out of present or future savings and consequently with­out creating any strain on the bank­ing resources of the country. The terms, as announced, have met with universal approval, but it should be impressed upon every Libetry loan committee in the country, that the real task before us is not accomplish­ed, simply by raising the specified amount of money.

If that had been the sole object, it is probable that the amount of the loan would have been fixed at a larger figure and the over­subscriptions accepted. It is most im­portant at this time with the dissolu­tion of the great Volunteer Liberty Loan Organization, after the close of this campaign, that everything pos­sible should be done to prepare the way for an absorption of the over-sup­ply of government bonds, which has been the chief reason for the decline in the price of the old issues and the plan of the secretary was adopted with particular reference to this situ­ation.

It is, now, the task of the Lib­erty loan committees to conduct the campaign in such a way that the re­sult will be realized. We must pursue the same intensive methods of distribution as have been, so success­fully used in the past. In the fourth loan the committees distributed to over 22,000,000 subscribers, who pur­chased in amounts from $50.00 to $10,000.00 inclusive, the sum of ap­proximately $4,000,000,000 of bonds, and if equally good distribution can be realized this time, a very large over-subscription is assured.

"The secretary has tried to devise a note which shall be a choice in­vestment at the time of its issue, and which will maintain its market. Hav­ing done his share, it is now up to the Libetry [sic] loan committees to complete the work.

"It should again be emphasized that it is of the utmost importance, that subscriptions for these notes should be obtained from the public and not from banking institutions, whose resources should be left free to take care of the commercial needs of the country, particularly, during this period of readjustment from war-time production to peace-time production, and also to care for any short term borrowings which the treasury department may need to make in the future. Attention should be called to the fact that this is the last Liberty loan, and that those peo­ple who had heretofore limited their subscriptions to the amount which they could pay for in six month's time because of the probability of another, loan within the period, can now more readily afford to obligate themselves for a longer period of time. Let this be truly a loan of the people, a loan of victory, a loan of gratitude."

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