Show BONDS FIGHT THE AXIS the american people will decide whether or not the nation will be forced to adopt and accept compulsory of war bonds according to secreta Sec it will be necessary necess arf for us to buy 10 worth of these bonds each month if we do that voluntad ily there will be no need for compulsion it if we dont compulsion will be inevitable some may wonder why the government cant pay for the war sim ply by selling more bonds to banks secretary Morgen thou rece n t 11 1 y pointed out the excessively heavy bank purchases are inflationary because when commercial banks buy government bonds they do not pay for them with actual cash taken from their vaults but by placing on their books newly cre created abed de posits to the credit of the government me nt when the government draws upon these deposits to pay tor for the goods and services it buys the pur chasing power of those to whom these payments are arc made is increased without any decrease in the purchasing power of those from whom the money is borrowed increased purchasing power combined bin ed with a decreased supply of goods is the certain road to disastrous inflation the government I 1 wants you to buy bonds with every ery nickel you can spare and it wants you to deny yourselves lux 1 uries so you can buy more no man can make a better purchase than the securities which buy weapons to fight th axis |