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Show LIBERTY BONDS: A PRIMER FOR FUTURE BUYERS j j U2 ci5 t J2 ; QUESTIONS ANSWERED AND POINTS MADE CLEAR TORTS are bein;: made to make it ea.-y and convenient for everyone to buy Liberty bonnp. Corporations Corpora-tions an-1 oilier business concerns con-cerns have adopted methods whereby their employees sro given an opportunity oppor-tunity to secure the bonds on installments. install-ments. If the war ends before further issues of bonds fire necessary. Liberty bonds wil! surely-increase in value, according ac-cording to statements made by men who are authorities on bonds and investments. in-vestments. Of no other investment can it be said thfit its value cannot decrease but mav advance. This is the privilege privi-lege of "having the security of the richest rich-est nation on earth. The following list of questions and ! answers furnishes information as to what the Liberty bonds are and what thov stand for: 1. ' Q. What is a government bond? A. A government bond is a promissory promis-sory note of ihe government of the United Unit-ed States promising to pay the amount of the bond on a certain date plus interest, in-terest, the interest to be paid at the end of certain stipulated periods. 2. Q. If I buy a government bond of this Tibertv loan issue, do T tie up my money for the full fifteen or thirty years? A. No. Liberty bonds will not be paid by the government for at leaM fifteen year?. But they may be sold instantly for cash to any bank, trust company or bond dealer at any time, or you can borrow bor-row on them at any time. 3. Q. Tf banks, trust companies or bond dealers will buy my bonds at any time, why do T buy them at all ; why aren't they sold direct to the banks and trust companies in the beginning? A. The hanks, trust companies or bond dealers can handle individuals' holdings because they will not be offered often nor in la rge q nan tit ies; it would be a very different matter for them to buy an entire two billion dollars' worth outright. out-right. The same principle applies as in the case of jewelers who alw ays have a market for a few diamonds hut would not want to buy an entire diamond mine at one time. Moreover, the government always wants its war loans distributed among as many citizens as posslhle ; it prefers numerous small purchasers to a smaller number of large purchasers. 4. Q. How much would T get for my bonds if I had to sell them to raise money? Or could I put them up as security se-curity for a loan? A. The market piice : because of the conversion privilege this cannot decrease materially: i t may increase. Liberty bonds will be the most acceptable security secur-ity for a loan at any bank. 5. Q. Will I have to pay the full face value of these bonds? How much will they be worth if the war is long drawn out. and bow much if it ends soon? Do such bonds ever decrease in values so that they have to be sold at a loss? A. Yes. Because of the conversion privilege privi-lege attached to Liberty bonds they practically- cannot decrease materially in value, no matter how lone the war lasts. If the war should end this year Liberty bonds should Increase in value from five to ten per cent for reasons which can be explained to you by any one familiar with finance. Ten Per Cent Profit. 6. Q. Do government bonds ever sell for. more than the original purchasers pay the government for them? Tn other words. Is rhre any probability of my selling sell-ing mine for more than I pay for them? A. There is no way of accurately forecasting fore-casting the market on government bonds. Spanish -American war bond?, after the war. were sold as high a.s $110, or at a profit of ten per cent. 7. Q. What Taxes will I be required to pay on my bonds? A. Liberty bo rids are not taxable except ex-cept for inheritance or estate taxes. They are the one security in which the assessor is not interested. 8. Q. I understand that these bonds are exempt from all taxe? extent estate and inheritance taxes. What are "es-tate" "es-tate" and "inheritance" taxes? A. P'state and inheritance taxes are those, collected by the government at the time the courts transfer property left by a - deceased person to his or her heirs; no such tax is collected at any other time. 9. Q. T understand that these bonds may be "converted" into bonds that pay a higher rate of interest if the government govern-ment later Issues such bonds. How Is the "converting" done; what would I have to do? A. The "converting" will simply be an exchange of your bond for another bond, identical in every respect except In interest rate. Any bank, trust company com-pany or bond dealer will handle the exchange. ex-change. If the government issues bonds of a. higher rate at any time, the newspapers news-papers will be so full of it that you will be sure to know of it. You can then take your bond to any bank, trust company com-pany or dealer and a,sk to have the exchange ex-change made. All to Government. 10. Q. Does the full amount T pay for1 my bond go to the government or do the banks, bond deaJers or clearing houses deduct something 'for handling the trans-i action? A. The act of congress authorizing the issue of Liberty bonds specifically prohibits the payment of any commissions or fees to anyone. The government re- 1 ceives even' ent that you pay for your, honds. The banks, trust companies, bond' dealers and stores which are selling Liberty Lib-erty bends are rendering service as a patriotic act without compensation. 13. Q What is the difference between a "bearer" bond and a "registered" bond? A. "Bearer" bonds are bonds which are payable to- the "hearer" or holder. The coupons attached to hearer bonds are also payable to bearer. Thus these bonds are in the most convenient and cashable form ; no formalities are necessary to transfer ownership. "Bonds registered as to principal and interest" are payable only to the registered owner whose name is registered on the books of the United States treasury department. Registered bonds do not have coupons attached; interest in-terest is paid by check. Registered bonds are more troublesome to sell and more difficult to borrow on than bearer bonds because a transfer of ownership can only be made on the treasury registration books and this entails some expense and loss of time. The bearer bonds are in denominations of 550, S100, S3 00. $1000. Registered bonds $100, $500, $1000, $5000, $10,000, $50.00tf, $100,000. 12. Q. If I buy a bearer bond and lose it, could the finder clip the coupons and cash them ?. A. Yes; but It Is the history of bonds that they are very rarely lost, as they arc not carried about, like money. 13. Q. If I am unknown at the place where T fil my subscription will I have to be identified? A. No. 14. Q. If I pay the firt installment of my subscription by check, to whom should t he fheck be payable, and do?s it neea to be rertined ? A. Make your check pa va.ble to the bank, trust company or bond dealer with whom your subscription is to be filed; it need not be certified. If you subscribe at a store booth, ask the man In charge for instructions. If at Stores. Q. Can a bond be purchased without with-out going to a bank or bond dealer's office? of-fice? If so, how? A. Subscriptions may be filed at the stores. These subscriptions ill then be turned over to the banks and other financial fi-nancial institutions, where further pav-mcnis pav-mcnis will be made and the actual bonds delivered. in. cj. If I make a deposit on the purchase pur-chase of a bond, but move away from alt Lake before- the bond is delivered to me, how will I get it? A. You i:hji complete payments through any bank convenient to your new locality. Any banker an y w here will gladly assist you. 1 7. Q. Why can the full amount be paid at t tie time of subscribing in the case ol a $50 or a $100 bond, but not in the case of buying more than one of these bonds or Lionels of higher denomination denomi-nation ? Why won't the government take the full amount of a large order at once if the subscriber is willing to pay it? A. This is done to encourage small subscription?. The government sayB to the $-50 or $100 subscriber. "You can pay either in full or in installments, as you choose. Moreover, your purchase is confirmed con-firmed now. You can count on gel ting your bond. The $10,000 subscriber, however, how-ever, must take his chances on having his subscription cut down in case more tha n the total amount of bonds ts applied ap-plied for. The government rin not want the total amount of the Liberty loan at one time. It wants payments to come in about as the money is needed. $2,000,-000,000 $2,000,-000,000 is such a huge sum that it would be almost Impossible to handle payments aJl at one time. 15. Q.Xf I buy these honds expecting to pay for them on the four different dates fixed by the government, and then something happens to prevent my keeping keep-ing up my payments, do 1 lose all I have already paid? A. The government requirement Is that payments must he made when due on penalty of fortfelture of all preceding payments. However, anyone who files his subscription through institutions will have no di fficulty tn having the matter satisfactorily taken care of if his explanation expla-nation of the delay Is a reasonable one. Moreover, the amount already paid is a transferable interest which may be sold. Collecting Interest. 19. Q. How will I collect the interest on my bonds? A. Each bearer bond has a page of interest coupons attached. One coupon Is good for six months' interest. When the six months period represented, by a coupon is up the coupon is to be cut off, or "clipped." It can then be cashed anywhere. any-where. Interest on registered bonds is paid by checks mailed to bondholders on each interest date by the U. S. treasury department. 20. Q. How will T collect, the interest If T move away from Salt Iake? A. The coupons e ttached to "bearer" boivis will be cashable anywhere. Registered Reg-istered bond holders must kep their correct cor-rect addresses on file with the U. S. treasury department at Washington. This ca n he handled by direct correspondence or through any bank or bond dealer. -. Q Ts there any age limit for purchase pur-chase of these bonds? Can a. young child become the owner of them? A. Anyone can own a Liberty bond, just as anyone can own a dollar bill. "2. Q. If I am unfamiliar with honds a nd not acqua In ted at any bank, trust company or broker's, and busy all day, how i-an I get advice or do anything? A. If you are busy alt day. ask your employer for advice or for an hour or two off and go to any of the places men-tioned. men-tioned. You will not need to be personally person-ally acquainted nor to be identified. Tn most cases, employers will be glad to handle the entire matter for employees If asketf to. Don't hesitate to discuss the subject with your employer; remember , lie Is a good American, too. i 2o. Q. I have nothing but my wages; ! no savings. Does my country expect me j to give up part of these when there are ; so many men with thousands of dollars j idle in the banks? j A. There Is not enough idle money In the banks to cover the Liberty loan, j Hank deposits are largely made up of the dailv receipts of business houses, against , which checks are drawn to rover the op- eraling expenses of the business, bills for goods, etc. It would not be to the j best interests of the country to withdraw j this money from the channels of trade. : Therefore it is absolutely essential that the wage earner invest a portion of his wages in Liberty bonds in order that the purchase of the entire issue may be assured., 24. Q. Could I buy these bonds now and give them later as Christ tpas or birthday glftsY A. Yes: and they would be very acceptable ac-ceptable gifts. 25. Q. Where shall I keep my bonds? A. Keep them with your other valuable valu-able papers, such as insurance policies, deeds, etc. 26. Q. Who would get the money from my bonds if I died ? A. The bonds would be a part of your estate and would go to your heirs as provided pro-vided by your will, or. if you died intestate, in-testate, they would be counted in the division of your estate according to law. 27. Q. Can a married woman buy these bonds without her husband's signing sign-ing with her? A. Tes; and it would be her personaJ property. 2S. Q. Should a woman who works for wages undertake to buy one of these bonds if she Is doing fairly well at present? pres-ent? A. It is undoubtedly the patriotic duty of every citizen to purchase a Liberty bond unless it would entail unreasonable sacrifice. 29. Q. Will the list of persons who buy these bonds be made public? A. No. No publicity will be given the names of purchasers by the government or the agencies through which the purchases pur-chases are made. 30. Q. What is an "interim certificate"? certifi-cate"? A. Air "interim certificate" is a temporary tem-porary receipt of the government Issued to cover installment payments during the "interim" of time until payment is made in full. Each payment will be Indorsed on the interim certificate and when full payment has been made the interim certificate cer-tificate will be exchanged for the permanent perma-nent bond. |