The Washington herald., 1917-06-30

over-subscription to the loan reported
from that district. But it is sur
missed in New York that a consid-
of the Minneapolis district was passed
through banks in New York, and pos
sibly in Chicago.
In Boston the belief prevails that
some large subscriptions were made
to the liberty loan by citizens of
that Federal reserve district through
New York hanks. Had all OF the
citizens OF that district who subscrib-
ed to the liberty loan placed their
subscriptions in Boston, presumably
the asgreyate subscription for the dis
tr.ct would have been considerably in
excess OF the 1892, 10000 Hhich was
reported as having been subscribed
in the Boston district.
Some curiosity and sentimental in
terest have been revealed in this city
when comparisons were made between
the total subscriptions reported from
the Boston district and the total SUBJ
scriptions reported from the Chicago
district. For there seems to have
been a strong competitive sentiment
between Boston and Chicago. Three
hundrd and fifty-seven millions were
reported from Chicago as having been
subscribed in that district. and 1922, =
10000 in the Boston district. Never
theless, although in absolute figures
Chicago surpassed Boston. Boston did
proportionately better than Chicago,
because its excess subscription was
about l per cent greater than the ex-
cess subscription in Chicago.
One reason for the very large sub
sCription which was made in New
York Federal reserve district can be
found in the fact that a good many
millions were subscribed here by cit
izens and by corporations whose DOM
tciles are elsewhere than in New York
However. the chief feature of the
subscription as a whole is the fact
that it demonstrates that the entire
country is one united family respect
ing support of the government in car
ryinG on the war with Germany. An
other feature associated with the
over-subscription of more than 81 ,O00.-
CH,c00 is discovered in the growing be-
lief that when Secretary McAdoo
makes the next offering for a loan,
the rate will be Sxed at 31-2 per cent.
There are some technical reasons. well
understood by bankers and especial
ly by those who manage savings
banks. why rate of 31-2 per cent for
the new loan will be more advanta-
Geous than If the rate were fixed at
The new fiscal year. which begins
today, will make, it is believed.
an even more stupendous record
than that which the statisticians
in Washington will be able to re
port has been the record of the
hscal year just ended. Some in
teresting and highly suggestive
statictics may now be reported as.
Tor instance, the bank clearings in
New York City for the third week
Of June were s3.066. 100000, and
that is almost 40 per cent increase
in bank clearings over the third
week of June. 1915. Reports from
the United States in the fiscal wear
now ending will probably be re-
ported by the Washington authori-
ties to have been of the money
value of somewhere between ss,oO0.-
100000 and $1,000, 900. 900.
The old fiscal year closed while
record was being completed that
is without any precedent in this
or any other country. For in the
last weeks of the fiscal year now
ending the American people sub
scribed an aggregate of over $1,000
100000 to the government Offering
of a loan of $4,000. 100000. Imme-
diately after the subscription books
wera closed, a nationwide cam
paigh for a free-will Red Cross Of
fering of s100.000,000 was made.
This enormous amount Of money,
1t was hoped, would be secured
within a week. as 1t substantially
was, thereby justifying the predic-
tion Of Henry p. Dawson that 1t
could be done There will be large
disbursements of dividends payable
on or after the 1st of July, and the
city of New York alone will take
up rearly $60,000,0G0 OF a loan af-
fereG by New York City.
In addition to this fact. the Fed
eral reserve banks in the fiscal
year now ending have enormously
increased their holdings of gold as
compared with those of last year.
These banks now hold a little over
81, 2e0. 100000 of gold, whereas 4
year ago they had in their vaults
only $4,000, 900. OF course. thes !,
enormous and wonderfully success
full financial UNDERTAKINGS have
made 1t imperative that our own
market be for the time being
closed against approaches to it COR
financial accommodations. That Is
the ,reascn why at this time Cam
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