The sun., 1917-05-12
SPECIAL DISCOUNT
URGED TO AID BONDS
Lowering Of Rate Is Recon-
mendcd to Federal Re-
serve Bank.

The extension OF a special rediscount
rate by the Federal reserve banks to
banks which lend large amounts of
money to their customers to purchase
liberty loan" bonds was considered yes
terday at meeting of the committee
which is cooperating with the Treasury
Department and the local Federal Re-
serve Bank. The discount rate Is now
per cent. but the committee believes
that the Federal Reserve Board could
facilitate the distribution Of the loan
by reduction to 3ia per cent, the in
tereet rate OF the bonds.
The committee also made further
progress yesterday in the preparation
for the campaign TO distribute the bonds
throughout the district TO small in
vestors. The Federal reserve district
was sub-divided into five districts-east-
ern New York, which includes New York
city: central New York. western New
York. Connecticut and New Jersey
with a special committee of Ave bankers
for each district. Each Of the five COM
mittees will appoint local committee.
The committees follow:
EASTERN NEW YORK: Charles A.
Sargent, Jr.. chairman; Joseph X. swan.
j. II, Perkins, Acosta Nichols and Harold
CENTRAL NEW YORK: A. J. Sheldon.
chairman, H. +. Glideen. W. H. Potter.
wEsrERN NEW YORK: +. NJ. Weld,
chairman. A. b. Leach, William II. Rem
lex; " /, MgKes and william G Bradlsy. sS.,y
man, Robert Hincke. F: r. Adams, Ciar-
ence Dilion and A. W. Gregory. .,,
man: Joseph Bradshaw. w. E. r. Smith.
Arthur Hagen, II. L. Morris and A. b.
Westervelt
Gary's Name Proposed.
Seventeen committees have been
formed in the New York district. with
a member of the general committee or
the committee on distribution as chair
man. These committees represent the
trust companies, savings banks, retail
merchants and department stores. ma
tional banks. State banks, stock ex-
change houses. newspaper and printing
trades. religious and fraternal organ!-
cations, women's organizations, munic-
ipal employees, public utility companies
or professions. railroad and Industrial
COMPANIES and insurance companies.
II has been suggested that Elbert II.
Gary. chairman of the board Of di-
rectors of the United States Steel Cor
poration, be appointed head of the in
dustrial committee The other suggested
members are U. n. Bethal OF the New
York Telephone Company, A. G. Bed
ford of the Standard Oil Company OF
New Jersey, y. J. Thayer Of the West
ern Electric Company. G. A. Coffin Of
the General Electric Company, Warren
L. Green and f. ]. Rerwind.
Stock exchange houses will be urged
through their regular clientele to dis
tribute the bonds. Retail merchants, de-
partment stores. public utility companies
railroad companies and Industrial com
panies will be urged to work out plan
OF submission to their employees. The
newspaper and printing trade Is urged
to work in conjunction with the publicity
committee. Municipal employees will be
handled through the Mayors.
Cardinal Farley to Aid.
The committee has received assurance
from Cardinal Farley OF cooperation In
the distribution OF the loan. Harold
Aron, who was head OF the speaking
bureau of the Hughes campaign in New
York city. and Dudley Field Malone
head OF the Wilson speaking bureau, have
placed their services at the disposal o!
the Government.
Subscriptions yesterday were on a
larger scale than the previous day. Ir
the opinion of Jacob II. Schin OF Kuhn
Loeb q Co. who Is a member Of the com
mittee, nothing better has ever been Of
fered by the Government. Liberty
| Loan bonds from the start bear 3ia PEI
cent. interest, free from taxes. and with
the schedule Of taxes as adopted in the
revenue bill now before Congress fol
enactment the obligations of the United
States Government will return a higher
income yield than almost any corporate
bond" said Mr.. Schif,