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Show GOVERNMENT BONDS I DO NOT DEPRECIATE i Fact That Their Market Value is Below Par Does Not Affect Their Maturity Value. San Francisco, Cal. "Daily quotations quota-tions on Liberty Ronds which at present pres-ent show them at below par, have nothing no-thing to do with the maturity value of the bonds and are of no inetrest to the ordinary bond holder," Governor John U. Calkins of the San Francisco Federal Reserve Hank declared here today. "The United States Government Govern-ment will redeem every Liberty Bond at its maturity date at face value plus accrued interest." The reason for the decline in the price of the Government securities is that speculators, anxious to win higher high-er returns on riskier investments have thrown their Liberty Bonds on the market, while subscribers who in some cases have found difficulty in completing complet-ing payments, have let go large blocks of the bonds. The daily quotations on Liberty Bonds reflect the action of these forces which fix mnrket values. Market values, however, have nothing whatever to do with real vulues. The Ban Francisco Chronicle, in the leading article in its financial page recently, said: "It is well known that large amounts of Libertys were offered as collateral for margin accounts by speculators. Many of these accounts were forced to liquidate their collaterals collat-erals in the recent break in the stock market. "The exchange of Liberty Bonds for 'Wildcat stocks' has taken place on so large a scale as to cause thousnnds of complaints to the authorities. It is safe to say that the person receiving these bonds have sold them. "The Christmas custom of exchanging exchang-ing gifts may, to some extent be called a contributing factor. Never were prices so high and never was the desire de-sire to purchase expensive gifts so prevalent. People reason with themselves them-selves that there is now no patriotic necessity for keeping their Liberty Loans so they sell their bonds to buy silks and jewels." Liquidation of Liberty Bonds by holders of small amounts for the purchase pur-chase of luxuries has virtually thrown these bonds into our currency system, sys-tem, owing to their negotiability. This has expanded our currency, cheapening cheapen-ing the dollar and contributing effectively effect-ively to raise prices generally. The man toho sells his Liberty Bond now loses money. It is good business to buy more at the present market values rather than to sell what you have. v) n |