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Show How lo Restore Liberty Bonds- To Par m Washington, Aug. 10 Proposing tho serial bond plan a the best mothod of restoring Liberty bonds to par, tho Kcpubliean Publicity association, asso-ciation, through Its president, lion. Jonathan Bourne Jr., Issues tho following fol-lowing statement from its Washington Washing-ton headquarters: " I bellovo," said Senator Harding Hard-ing In his speech of occeptance, 'this government should make Its liberty and victory bonds worth all that its patriotic citizens paid in purchasing 'thorn Thoro are probably 16,000,-000 16,000,-000 bond holders in the country today, to-day, and to them Senator Harding's statement brings encouragement that their securities will be enhanced In value about 11,500,000,000, restoring restor-ing tho loss sustained through depreciation. de-preciation. Tho eandldate Implies that if ho Is olected he will do his utmoct to restore to par tho war obligation ob-ligation of tho government. "And It is no idle reference he has mado to tho matter in the hopo only of catching votos at tho election. By tho refunding of all tho Liberty Issues Into a slnglo serial bond issue bearing interest at the rata of 6.1-3 per cent, tho market prlco would probably go Immediately to par, tho Interest return to bond holders would bo Increased by from 19 to 33 per cent, tho entire amount of tho bonds would bo retired by Juno 15, 1947, the. latest dato of any Llbeity Is-mio and the whole transaction would cost tho go eminent no more than an adherenco to the present Blnl.liiK fund method, "Tho conspicuous ndalilnges of serial bonds ovor an Issuo having a J slnglo maturity dato were strikingly I set forth by former Senator John W. ' Weolts of Massachusetts In an nd-, nd-, dress to the Senate on September .17, 101S, during the discussion of tho Fouith Liberty loan act. At that itlmo ho dnnonsirat"i how unions of dollars could bo saved to the U ! payers by tho adoption of tho serial I method but his recommendations wcro Ignored by tha Democratic nd-I nd-I mlnlstartlon. It Is not yet too lato I to secure thu advantages of tho ser-. I lal Bystora It a refunding plan should bo adopted by tho Harding admlnls- tratlon. "On May SI thore were outstanding outstand-ing approximately $16,384,000,000 of Liberty bonds, bearing (nterest rates from I 1-2 to 4 1-4 per cent, and maturing at dates ranging from Beptombor IS, 1928, to June IS, ' 1047. Tli redemption dato for Vle-i tory notes Is Juno 16, 1922, and the maturity date May 20, 192S. which are so noar at hand that the notes should be considered separately in any plan for future financing. Aa-aumllng Aa-aumllng that each Issue ot Liberty bonds will be retired on its maturity date an exceedingly conservative assumption, as-sumption, then' It will havo cost tho taxpayers In Interest and principal payments from Juno 16, 1921, a convenient con-venient dato after tho inauguration of tho Republican administration, to Juno 15, 1917, approximately $26,-142,000,000. $26,-142,000,000. If tho Ilopubllcan congress con-gress should enact a law refunding all thoso issues into a slnglo serial Issue bearing 6 1-4 per cent Interest finally retired on Juno 15, 1947, the total cost would bo about $20,-287,000.000. $20,-287,000.000. ; "The advantages o( that conversion conver-sion would be: 1. Tho probablo ro-turn ro-turn of every Liberty bond at par, and tho restoration of about one and n half billion dollars to tho wealth of tho bond holders. 2, Tho distribution distri-bution tho first year among tho bond owners ot about $175,000,000 additional addi-tional Interest, gradually reduced from ear to year aB the principal Is retired. 3. The certainly of tho absolute extinguishment of tho nation's na-tion's war debt nt tho und of 2C jonrs. Under the present system It will mn for an Indoflnlto period do ponding upon various factors, such tho dlscrotlonary use ot the nlnlclnc fund by the secretary ot tho treasury and tho possible refunding by con grsi of portions ot tho debt,. "Practically the only objection to tho serial method Is tho Increased first cost. It would requlro for tho . first year approximately twlco tho appropriation for principal and Interest In-terest contemplated by tho present plan, but with tho annual reducttoa of tho principal 1st a fow years It would bo nctually leas thau tho sinking sink-ing fund requirements. Morcovei, appropriations for such a puiposo aro not resented by tho taxpayers as ov-cry ov-cry dollar promptly goes back to them In tho shape, ot Interest and principal payments on their bond holdings. "Of course, tax exemption features and other details ot such financial legislation would havo to be worked out by tho Congress but It Is apparent appar-ent that It will be posalblo for a Republican Re-publican administration to enact a law that will restore to the millions mil-lions ot owners of Liberty bonds the losses they have been compelled to endure as tho market prices of their holdings have steadily depreciated." |