Show FUNDING PLAN IS C t 1 po 1 f for r Libert Liberty Bonds Fails Falls to Create Enthusiasm Enthusiasm En En- k En- En EniA iA th r w YORK yong June June 4 The The prop proposal sal that bonds be be paid off as the tha first I fec fe few issues mature out of oC proceeds of oC Brit Brit- sh French Italian and Belgian bonds I Bri-I to i hold oid to to American Investors has cr crated ons Interest interest among among bond de dealers les t It not not muc much enthusiasm The plan I is not t clear l ir enough to enable specialists to toJ J rm a a de decisive opinion jot I ji agreed that as long lonG a as the govern- govern dent Jent holds foreign obligations in the treas- treas uy ther fy there will wi be endless proposals to ta cancel cancel can can- cel the d debt bt This is regarded regard d as un- un by by bankers and government of- of alike alke By fly transferring Allied aled debt to i Amerl American an Investors the government government govern govern- gover- gover ment would be relieved of oC this embarrass embarrass- This is ii an n advantage antage that Is gener- gener generI I xo dealers point out however that if it I the government Is to guarantee principal and Interest on al proposed foreign issues they i will vill practically become United States Mates ob- ob Ig just just what they are ar now From the Investors Investor's point of oC view therefore the value alue of oC the bond would not be affected vy this clang change alone But if as is presumed a higher rate of In Interest in- in r terest erect U is to be seP paid and th tha h bond r f is ef for all i practical purposes to remain a United States obligation it it in effect would me mean n that hat Int interest rest on approximately halt half the the present outstanding Liberty Issues Issue would be bc hie while the other half hair not con- con into Inlo foreign issues would continue t beal the present coupon rate rate In this different rate dealers sa say there Is a possibility pos pos- of oC con considerable dissatisfaction They believe beleve It I would be a mistake to pay one investor say 6 per cent on hi his investment and nt another one only 4 i per cent I Furthermore the they lay say it if a a 6 per cent obligation ob ob- ob- ob l guaranteed principal and interest t by Aby by United States government sells at par th tb 4 per er er cent Liberty bond will wm sell sel on about a 6 S per cent rent basis which would mean n lt her decline In quotations of oC Liberties jak q n |