The practice of accepting Liberty Bonds in exchange for merchandise, which is being followed by some merchants, tends to defeat the primary object of the sale of Liberty Bonds.

The Liberty Loan Committee of New England states that this practice discourages thrift, increases expenditures and deprives the Government of labor and material needed for war purposes.

It has also pointed out that bonds exchanged for merchandise must in most cases immediately be sold in the open market, which tends to depress the market price of the issue and makes it less easy to sell future issues at the same rate of interest.

The Liberty Loan Committee of New England, therefore, requests merchants who are offering to accept Liberty Bonds in exchange for merchandise carefully to consider the practice and hopes that such offers will be withdrawn.

The Government is making a strong effort to have Government bonds purchased for permanent investment by the people, who are urged to pay for them out of past or future savings. Purchases thus made provide funds for the uses of the Government and, not being expended for useable merchandise, also effect a conservation of labor and material.

The Secretary of the Treasury writes to the Committee: "I hope that the merchants of the country, upon a more careful consideration of this subject, will discontinue their efforts of selling merchandise and taking Liberty Bonds in payment."

LIBERTY LOAN COMMITTEE OF NEW ENGLAND.