October 13, 1920.
Dear Alice and Harry:
What difference does the weather make when you want a Pic-nic! It had been agreed that we should have Oct. 12, “Columbus Day”, for a trip up the river. But Tuesday, Oct. 12, dawned rainy and cloudy. Who ever saw a group of young people give up a pic-nic just because it rained the P.-N. was announced at Chapel. The rain was falling at the time and we planned as if we expected to go out and sit upon the grass. The ice cream was ordered to be sent up the river and we distributed it to our respected homes. About that time somebody was struck with the absurdity of the whole affair and the word was passed around that we would have our “feed” in the College Gymnasium. Of course the ice cream had gone up the river. But our good friend Vowles who has an auto went after it, and we got the dinner ready about one o’clock. Meanwhile as soon as I saw they were going to eat in the Gym. I decided that I would eat with them. Of course I did not want to leave Mrs. S to pine away along during the noon hour, so I went over and told her I should not be there for dinner and I invited her too dinner in the Gymnasium.
I spent the forenoon in the Library and the next three hours getting something to eat. The boys and girls danced on the Gym. floor. So that has probably come in to stay. We have never sanctioned dancing before but it was not my business to stop it. So the dance went merrily on! I put in the rest of the day and evening at my post.
Do you have “Columbus Day” as a holiday in New York? I suppose not. It takes the nonpartisan league to inaugurate the holidays. You will get around to it in time.
We shall send you your bonds in a few days. They will cost 90 instead of 88 as I first wrote. You will then get $33 each year. As you will have invested only $500.00 it will net you 6 ½% all right. As a matter of fact when they mature you will realize more than 7%. For you will receive full 100 cents on the face value of the bonds. A great government like England or France or the U.S. would never fail to pay 100 cents on the dollar.
I figure it as follows: You invest $90.00. You will receive $5.50 a year for nine years. At the end of that time you will receive $100.00 for your bond. Thus in nine years you will receive $49.50 for interest and to that you can add $10.00, (the difference between $90.00 that you paid and $100.00 which you will receive for your bond), making $59.50. And $100.00 which you will receive for your bond.
Now we will find the rate. You know the rule.
Principal X Rate X times equals the interest. Or Algebraically P.R.T. = I. Divide that equation through by P.T and you get: R= P.T That is the rate equals the interest divided by the product of the principal multiplied by the time. Which in this particular case is:
R= 59.50/90 x9 = 59.50/810 = .07 28/81 or nearly 7 ⅓%
Of course you receive only 6 ½% each year until the last when you get the $10.00
I hope I have made this clear - -As I said before if you do not want it I will take it and get a mortgage loan for you.
With much love,
From Your Father
Yoru just rec’d will send the bonds soon. You can get the coupons cashed right in your bank when they are due. It is all in good U.S. Money.