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Show I Liberty Reaction Is Temporary t By Ira C. Tichenor PIE reaction in the Liberty bond market, following the final disposition of the aoldier bonus bill, uuqnentionably waa the result of one cause, and that the fear of another European war. This fear was quite naturally entertained generally by the ntlr world. In view of th wemins lmmlnfc of elh between th British forc and the Turkish Nationalist, and which, had It . occurred, possibly would have embroiled much of Europe. . The direct cause for the decline In the prices of Liberty bonds from points well above par to below their face value In nearly every Inatance waa the free sellinf of the bonds by holder who permitted their fear to cause them to forget that their holding consited of the most gilt-edged or all securltle In the world, and whose ultimate redemption valu could not posKlbly be affected even by another European war. There are' those who take the view that the bond of th United Bute government r the safest Investment on earth, and these are the ones who now own many million of dollars' worth of th Liberty bonds that war thrown upon th market by th njor timerou of Investors who had been willing to turn their bond into cash, and, doubtless In ome Instance, at a loss. S Ther can be no question that United Slate government bonda are th most liquid of a.l astets because of the certainty that they will eventually ' be redeemed at par. In fact, they are practically a liquid a th cash Into which they can b transformed. Because of thi feature. Liberty bonds are quit commonly employed a a vehicle of temporary Investment nd ar naturally sensltlv to any Increased demand for funds from any ource. As a result, when they are freely offered, as was th cae quite recently, because of a fear of another war. the price teadlljr dropped. The losers were the ones who let go of their holdings, whll th win-irs win-irs are those who plckeduptho bargains, knowing full well that eventually thy would at least recelvs a full dollar for every fraction of" a dollarnhey , taivestcd. In any event, the reaction In Liberty bonds can be but temporary. Th country still Is In a period of easy money, and the Indication ar that j Before thla period 1 ended the Liberty will go to .probably a per cent |