The First Personal Liberty Loan

A Chance for Capital to Get Aboard a Good Thing, Explained a Capitalist of the Future

GEORGE S. CHAPPELL

THIS article is addressed to the reader in the hope of interesting him in an investment of the very highest character.

That investment is Me.

I have just incorporated myself, my bonds are on the market and I am about to float a loan. If I can't I shall sink alone, that is all there is to it. But I have every confidence in my plan.

I am convinced that it is the only way. To begin with, it is a big scheme. It isn't one of those picayune, little twenty-dollars-until-thefirst-of-the-month loans. No, not at all. I've tried those. They are all right in their way, but they don't last long enough.

What I am aiming at is to sell $5,000,000 in bonds. The issue is to be called the First Personal Liberty Loan, and I hope to interest every patriotic man and woman in this country. The name itself ought to appeal. It has a fine, manly, independent ring. If the thing goes over successfully, I shall be independent for

life. . .

The idea came to me in this way. Times, as we know, are still hard. We are still suffering from the effects of the War. I have been able to keep out of the "Business Troubles" column, but it has not been easy. I was never quite certain. One day I turned to this department of financial obituaries in my morning paper to see if I was in it yet.

The Genesis of the Idea

NO, I wasn't there. Another day saved. But in an adjacent column, devoted to money matters, stood the announcement: "Bolivia to Borrow $20,000,000 in the U. S. A."

A little further on I read:

"To Sell $25,000,000 Jugo-Slavia Bonds." In a dazed sort of way I perused the details. "Arrangements have been completed between local bankers and representatives of the Republic of Jugo-Slavia for the sale in the New York Market of $25,000,000 bonds of that country. The terms will follow closely those of the Czecho-Slovakian 8 per cent bonds offered here in April, which were oversubscribed.

"Firth, Butter and Company, the Bank of the Borough of Brooklyn and Schellkopf, Klinkerholtz and Company, Inc., are handling the new issue."

The glimmering of an idea began to work through between the lines! Feverishly turning back and skipping the daily announcement of Mr. Gary, the Polyananias of Pittsburg, to the effect that we were "on the eve of a tremendous wave of prosperity", I re-read the Bolivian notice.

"A banking group headed by Goldwitz, Schliemann & Co., Lorbmann Brothers and the East Side Mite Box Association, Inc., announced yesterday an offering of $20,000,000 interest-bearing bonds of the Republic of Bolivia.

"The new issue represents a first mortgage on Government deposits of antimony, bismuth and zinc, and the proceeds of the new financing will be used to liquidate current indebtedness and will provide additional working capital for development and expansion work."

The words seemed to burst into flame beneath my eyes! Here was my problem described to perfection and solved in the most magnificent manner!

Certain words and phrases stood out particularly. The Czecho-Slovakian 8 per cents were offered in April "and were oversubscribed". Bolivia wanted the money "to liquidate current indebtedness and to provide additional capital for development".

Ye Gods! That was just what I wanted it for.

The only difference between me and Bolivia and Jugo-Slavia and Czecho-Slavia was that I was a person and they were Countries. But I was nearer than the first and older than the other two.

The whole thing was simply a matter of method! In a flash I saw my past mistakes.

I had been too timid, too modest in my demands. Instead of crawling into the office of Mr. Thompson, the President of the Pelham National, plucking at the hem of his garment and saying "Dear, good, kind Mr. Thompson, could you possibly lend me fifty dollars on my Ford till next Wednesday?" in which case Mr. Thompson would frown severely and say "Will your Ford last until Wednesday?", the thing to do was to stride beyond the glass partition and say, "Thompson, I want you to handle the floating of a ten-million-dollar loan."

Can't you see the difference? You are talking to an equal. You immediately establish the fact that you are not asking favours. You are conferring them. Mr. Thompson at once says, "Close the door. Pull up a chair. Have a cigar. Shoot." And you're off.

I have worked out my scheme to the very last detail, and the results have completely confirmed my impression that you can get any amount of money if you only ask for enough.

As a preliminary step I carefully studied the status and resources of the countries referred to in the loans I have mentioned. Mind you, they get away with it; why shouldn't I?

The Details

I FIRST took up the Slovakias, Czecho and Jugo. The April issue, you will recall, was already over-subscribed. I couldn't get that out of my head. There was every probability that Jugo would meet with a similar reception. Here were two little infant countries, barely able to stand on their own feet, and yet investors fell over each other in their effort to assist them. By the time my prospectus is out, both of these republics may have disappeared. I can assure the great American public that as long as I live I shall be doing business at the same old stand. I own my own home, and I couldn't leave it if I wanted to. Back of me stands the immeasurable power of the United States of America and the mortgage laws of the State of New York!

What is the condition with regard to Bolivia? Her resources are great, to be sure, but how far away they are. An exhaustive analysis of Bolivian assets shows the following, "Rubber forests cover forty and one half million acres, chiefly in marshy ground." Don't fail to grab that "chiefly in marshy ground!" It may not hurt a rubber tree to stand in a marsh, but if you have had any experience in real estate, you know that it is expensive property to reclaim.

Again, "Bolivia is rich in antimony, bismuth and zinc". Good! I can't compete with that. My cook uses a zinc pail for the conventional discards, and I believe we have a small bottle of bismuth in the medicine closet. I'm absolutely out of antimony, in fact, I've always thought it was something you paid your wife after she'd left you.

Bolivia is also rich in tin. Again I say, good; but it's too far away. Which would you rather have, a lot of tin at the bottom of a mine in Bolivia, or a Ford (1912) at your backdoor ? I concede nothing to Bolivia.

The only hitch has been the selection of my financial agents, but that has at last been satisfactorily arranged. The Pelham people have hemmed and hawed and hesitated until I have definitely cut them out. In fact, I have found that local institutions generally show considerable hesitancy in backing an issue of this sort, in spite of the fact that they know all about me.

But I realize that local agents are necessary, and to that end I have organized a firm of my own in the persons of two enterprising young men of the proper persuasion who jumped eagerly at the terms of 50% of all sales.

The Public Announcement

MY letter to the public speaks for itself. It is now being printed and will shortly appear in the financial sections of all the metropolitan papers. The announcement follows:

"An important and unusual opportunity for investors is announced today by the well-known banking-house of Ickleheiner and Rabinowitz of New Rochelle, who have secured the exclusive offering of $5,000,000 7}4 bonds of the first Personal Liberty Loan issued by G. S. Chappell, Inc., of New York and Connecticut. The terms will tollow closely those of the Standard Oil Co., of New Jersey, which are now selling at 112; and are already over-subscribed. These bonds are offered at 98^4, making a yield of 7.02%, and will mature in 1983 or later.

"The bonds are secured by the good faith of the Chappell Company and by its plant and rolling stock which will provide for interest and sinking fund, particularly the latter.

"These are first refunding gold-bond (Series A) suitable for framing, and with each bond will go a bonus of 5 shares of common stock and a signed photograph of the head of the Company.

"The proceeds of the new financing will be used to liquidate current indebtedness and will provide additional working capital for development and expansion work."

A subscription blank is enclosed. The Pelham National and similar hardshelled institutions will have to buy these bonds in the open market. They had their chance to get in on the ground floor and passed it up. Let them take their medicine.

When the first check comes in, I am going to buy me a braided cut-away and a top hat. Then I will be a regular capitalist.