The Bridgeport evening farmer., 1917-04-03
START MOVEMENT
FOR FIRST WAR
LOAN" SINCE '98

&ShI1w ~asvSA "
A movement is now under way to
secure a popular sale of the first war
loan" made 10y the United States since
1898, when an issue of $2O0,OO0,000 20
year per cent. bonds in denOmina-
tions as small as $40 was seven times
subscribed.
Local bankers say that a new issue
of bonds is certain to he made by the
government. What the amount will he
is uncertain. The first figure named
was $3.50, 900, OOO-the estimate of a Con-
gress with somewhat restricted ideas
on preparedness. Another, and later,
suggestion is that at least billion
dollar must be raised
| Whatever sum is decided upon, say
those bankers and bond dealers who
are familiar with government f1nan-
cling, it ought to he widely distributed.
If the experience of European coun-
tries in the last two years is worth
anything, we will all be given chance
to buy pieces of the next loan as small
as ten dollars. One advocate of finan-
cial preparedness putt the matter in
this way today:
| ct is necessary that this loan shall
be a popular, rather than an under
written loan. The sooner we get rid
of the idea that a selected list of our
citizens can bear the whole financial
burden Of war (or for an adequate
scheme of preparedness), the better
for our country.
'Tsn't this as logical as the conten-
ton of army man that no plan is ma
tional defense will ever be effective
| sod 1,y,f1
LAS a matter of fact, the average
American citizen has as little chance
to invest in any sort of government
bonds as he has to fit himself to be a
/ soldier. He must make a considerable
effort to find a Government, and when
he does the question arises, can he
afford it? Just as the man who wants
to get ready in a military sense must
take lot of trouble-spend his own
time and money, as at Plattsburg and
other training camps
How near to the truth this bankers
statements are is indicated by the fig
ures furnished by man who has fol-
lowed the distribution of securities in
this country.
i In the last twenty years, the rail-
roads have issued many billions Of
bonds and stocks, and the dealers
have made special efforts to have
them widely distributed. Yet it is
estimated that only about 5000 per-
sons in the United States own any
railway bonds. About the same num-
Der own stock in the roads; and Of the
! great industrial corporations their
ownership Is in the hands of fewer
than $4,000 stockholders, while own
ers Of bonds in such companies prob
ably do not number a third of thta.
/ When it comes to Government"
Bonds (and any tax-secured issue,
such as National, State, County or
City bonds is included) not one Am
erican in 500 even knows what they
look like. They are sold, after per-
functory, specialized advertising, to
specialists, who in turn sell to banks,
big estates, savings institution. The
average resident of city seldom
knows when his city borrows money
| and issues bonds.
| In normal times our method an
swers. But war is not normal-nor
! will the bill for adequate prepared
ness be of normal size.
Recently the GuarantyNTrust Com
pany of New York issued most in
l formative booklet under the title Of
l''War Loans and the United States
Concisely, the booklet shows that in
every real crisis Of our history it has
been necessary to go directly to the
people for money-exactly as the Eu-
ropean war has. shown that the real
financiers of victory must be the own
| ers of the small sums.
The first war loan made by our
country ($6,000) in 1775 sold at par;
within 6 years, continental bills of
| credit had fallen 80 per cent We
were hanging by our eyelashes on the
very brink Of bankruptcy. Then Rob-
ert Morris came to the rescue, proving
that his personal credit was higher
than tina: of the Government. Morris
undertook to stir the patriotic impul-
ses of the people. He succeeded; and
money to finance some Of the most
important campaigns of the Revolu-
tionary war was found.
In our next great crisis-the Civil
War-Jay Cooke, with 1850 agents, a
spectacular campaign Of advertising,
and magnificent system Of distribu-
ton, saved the credit Of the Federal
Government by selling to the people
over half billion dollars of per
cent. bonds in pieces as small as $50.
More than 100000 people in Eng
land bought pieces of the last war
loan-when some 5 Billions of dollars
was raised. A sustained, highly or
ganized campaign was pushed for
months-and every investor with as
little shillings (about one dollar)
was appealed to. In Canada, a SINH
lar campaign is being undertaken with
the same purpose-to bring every last
! money owner of the Dominion into
sympathy with the British Empire
! financial needs.
That banker who argues for uni
versal financial support, to supple
ment universal manhood service under
arms, makes this plea:
Let us make the next Govern
ment bond issue-whether we call it a
war loan or a preparedness loan
genuinely popular. Let us have it in
$40 pieces, and bearing such rate
of interest as will appeal to the thrifty.
Maybe 3 per cent. is enough interest
to pay-it is what a great many saw
ings banks pay, and is the rate decid-
ed upon by a company recently organ
lied to put $40 Thrift Bonds Chased
on City, County, State and Govern