Show HOLD LIBERTY BONDS people urged to retain them as permanent investment government discourages practice of merchants in accepting them in exchange for merchandise united states treasury officials anre seeking to discourage the tol lowed by many merchants throughout ibo country 0 offering to accept liberty bonds of the first and second issues at par and in some cases at a premium in exchange for merchandise they hold that such practice defeats the primary object of the sale of the bonds discouraging the general movement and increasing expenditures thus depriving the government of labor and material needed for war purposes while I 1 have no doubt that merchants are actuated by motives said secretary of the treasury mcadoo in a statement given out through the federal reserve banks I 1 im sure that they have failed to con ider the effect which the acceptance f offers leave upon the situation we are mil ing the strongest effort to have anse government bonds purchased for permanent investment by the people at large to be paid for out of the past and future savings of those who buy them thus made not oab result in prodding funds for the of the government hut they also effect a of labor and material when the bonds are exchanged or merchandise tho primary object of their sale Is defeated discouraging thrift and increasing expenditure in addition to this such bonds han tak en in exchange for must in most cases be immediately sold in the open market this naturally tends to depress the market price of the Is sue and roal es it lesa easy to sell fu ture issues at the same rate mcadoo believes that the merchants of the country upon a more careful consideration of the subject discontinue their efforts to bedl merchandise and take albe ty bonds in payment for it |