The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-06-18
A POPULAR LOAN

The new war loan of 5000, 900 900 secured
on United States coupon bonds bearing
three per cent interest is evidently des-
tined to become popular" loan in every
sense Of the word. The necessary blanks
and instructions have not yet arrived
from Washington. but nevertheless some
banksare. already receiving and register
inSss4 6Gcripti although the work may
have to be done all over again when the
official blanks arrive.
1t appears to be the intention of the
government to allow the people the first
opportunity to subscribe to this loan, to
the exclusion of the preference ordinarily
given to the capitalists of the country. At
least that is the conclusion to be drawn
from the statement that applications for
thu smallest amount of the bonds will be
accepted first and subsequently in in
creasing order as the bonds asked for
grow In amount. tA
In the first place, the loan is to be al :
lctted at par although there is no doubt
that the money power would offer better
figure if it were allowed to take the whole
amount. AS it is, allotments of bonds of
twenty dollars up to five hundred dollars
will be given first preference. In other
words, applicants for bonds amounting to
five hundred dollars or any less sum will
be assured that they will receive the
amount they ask for. 1t would take four
million separate applications Of five hun
dred dollars each to exhaust the principal
amount of the loan, and therefore there
is no risk of such a happening. There is.
however, a lively curiosity s to the total
that may thus be raised by small con-
tributiops, but no one. can be found hardy
enough 10 hazard guess as to what the
result may be-. 0fall the guessing con-
tests ever instituted this seems to be the
most puzzing.
After the allotments Of five hundred dol
lars and less are attended to, it is the in
tention to take up applications between
that amount and thousand dollars, and
so go on increasing until some of the big
fish get chance to swim.
The Intention of the government to give
smallest bidders the absolute prefer
ence has naturally enough set in motion
such devices'as may be thought of to cir
curnvent the regulation. Knowing that
apple atoms for five hundred dollars are
absolutely sure of acceptance. bank and
other corporation employees will be asked
to sign applica tons for five hundred dol
lars each without personal liability for
such subscription, and the aggregate of
such amounts will give the bank or cor
poration larger share of such loan than
1t could otherwise possibly obtain.
1t is already anticipated that five mill
lion dollars will be withdrawn from the
savings banks of. San Francisco for in
vestment in the war loan, and proper
tionately large amount will go from this
center beyond a doubt
At time when savings banks are pay
ing existing rates of interest the dcpositor
who wfthdraws his money for the pur-
pose of investing in United States three
per cents can have none but a patriotic
motive, even making allowance for the
added security he obtains.
According to present advices the pop
ular subscription to the loan will not
leave the money kings very large mar
gin upon which to figure their profits.