Evening journal., 1912-07-02
NEW NEWS OF YESTERDAY
The Faith in Advertising
That Got the Union Two
Billion Dollars
By Holland.

From March 1866. when he took
the post at the request of President
Lincoln, until March 1869. Hugh Nc
Culloch Of Indiana who had become
the first Comptroller OF the Currency
in 1868, became Secretary of the
Treasury He was thoroughly CON
vorsant with the financing Of the
government during the civil war. and
If he could have been persuaded TO
write the story much that has been
lost TO history would have been pre-
served
The late John Jay Knox, who was
Comptroller of the Currency from
1872 TO 1884, and an intimate friend
OF Mr.. McCulloch once asked the lat
ter who, in his opinion. had given
the government the greatest financial
assistance during the civil war.
"Mr McCulloch did not hesitate a
moment in replying TO my question" "
said Mr.. Knox. He answered in
stantly that he thought If everything
we're taken into consideration, the
greatest individual service i'm a finan-
cial way performed by any one man
was that done by Jay Cooke
"I asked Mr.. McCulloch If he had
overlooked the action of the bankers
of New York Boston and PHILADELPHIA
in lending a hundred and hty mil
lions i'm gold TO the government in the
fall Of 1861 when It had no money. In
reply he said
"That was very important fnan-
cial transaction. but IL was after all,
a purely banking transaction. The
bankers bought government bonds
nd 20 -.
wards they sold the bonds That was
trivial in comparison with the amount
OF money Jay Cooke secured for the
government. ] was looking at the
figures only a few weeks ago jay
Cooke actually upon his own person
al responsibility, financed for the
government about two billion dol
lars in all or little more than one
half OF the entire cost Of the civil
war
"'I do not believe any responsible
banker in the United States except
Mr.. Cooke would have undertaken to
float three loans upon his own re-
sponsibility. as Mr. Cooke did And
! do not think that Mr. Cooke has
ever had full credit for one thing in
connection with this work Of his as
financier which is without precedent
in the history of the world.
Cooke once told me how the
idea of the true way to float govern
ment loans by calling the attention
Of the people to the loans had come
to him. He said he had been inn
pressed by the fact that when meet
ings we're held in support of Presi-
dent Lincoln and his administration
they were attended by almost every
body. Now argued Mr.. Cooke. n the
people only knew that the govern
ment was anxious TO have them aid
by lending money upon the security
of the governments bonds. then there
would be just as great disposition TO
lend that money as there was to aid
the government in other ways.
In other words Jay Cookies real
achievement was his discovery Of
and faith in Advertising He was
probably the greatest advertiser OF
his time, perhaps OF any time He
had no sooner negotiated with the
Treasury Department for the floating
of loans than he began an eXtraOr-
dinary active and far-reaching sys-
tenn of public advertising In this
way he caught the eye and then the
attention Of the public. Some peo-
pie thought that this was the way Of
the public Snowman because always.
before Mr. Cooke began using this
plan, financial transactions for the
government had heen regarded al
most as confidential or secretive un-
dertakings
'Mr Cooke said however. when
criticism was made of his methods,
that he was quite as confidential as
the bankers who had foated some of
the loans were in tho habit of being.
with this difference. that he had TAX
en- the people into his confidence and
they had given IL to the extent of
hundreds of Millions of dollars. Yes,
Jay Cooke was the greatest adver-
tiser of his day or of any day, and
he discovered the principle of adver-
tising as an accessory for the floating
of a great government loan.
(Coupright 1912, by Il. j. Edwards
All rights reserved)
Tomorrow Mr.. Edwards will tell
of "The Story Of the Birth of the
Railroad Spike"