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Show - i Why n Farmer Should Buy and Keep War Bonds by Mark T. Buchanan Acting Chairman, Division of Farm Management and Agricultural Economics State College of Washington, Pullman, Washington DURING the early staues of an inflationary period a farmer . u tnik like a pessimist and T ike optimist He should end himself by means of credit take advantage of the rising Drice situation. During the latter part of an Inflationary In-flationary period he should talk Eke an optimist and act like a imist. He should liquidate his Stand put as many Inflationary !,,, as possible into a fixed fnvestment. No fixed Investment , more satisfactory for this pur-posTthan pur-posTthan War Bonds of the United States. m addition to laying aside pres- , e.,siiy obtained money to use when its purchasing power has increased, in-creased, there are several other reasons why farmers should buy and keep War Bonds. Reserve for Needed Replacements Replace-ments and improvements. Every farmer knows that his machinery and eauipment gradually wear out and become obsolete. During this time when new machinery and eauipment is difficult to obtain, he should lay aside funds with, which to replace this equipment when it becomes more readily available following the war. Prevent Inflation. This war is costing twice as much per year as to total cost of World War I. To the extent that the Government can borrow this required money from individuals out of savings or funds that otherwise would be available for living, inflation will be averted. That is why the Government Gov-ernment is much more interested in selling Bonds to individuals than in selling them to banks. Protection. This country and the war effort have been blessed with six successive years of phenomenal phenome-nal crop yields and agricultural production. If a penny i tossed six times and comes up heads every time, the probability of the seventh toss is still 50-30, heads and tails. Although the succession succes-sion of good crop years does not necessarily portend crop failure fail-ure to come, nevertheless crop failure is always something that should be considered possible. Money invested in War Bonds wili provide protection for living expenses ex-penses and capital during the difficult dif-ficult years. Safe Investment. As a rule the paying off of the "mortgage" is a farmer's best investment. During the war years, however, many farmers have accomplished this, and are now seeking a safe investment invest-ment for extra cash. No investment invest-ment is safer than the Bonds of our Government. Not only is this investment a safe one, but the returns re-turns are attractive. Series E Bonds held for 10 years return interest in-terest of 2.9 per cent, compounded annually in 10 years $4.00 for each $3.00 put in. Patriotic Motive. Not to be forgotten for-gotten is the fact that this war must be won. Farmers have more sons and daughters in the service per family than any other group of our population. We must provide pro-vide them with the planes, tanks, guns, ships, and other materials necessary to speed their return home. U. S. Trtasury Deparlmtnt |