New-York tribune., 1917-07-16

IoSltS from local banking institutions
the call rate at the Stock Exchange
rose above 5 per cent, compared with
212 per cent earlier in the week.
Rates on time loans and commercial
paper were also higher. The best
banking opinion is that from now on
there will be alternating periods of
firm and easy money. Periodical
government borrowing will serve to
tie up banking funds and reduce
loaning surpluses. This will tend 10
force interest rates up temporarily.
In the intervals between such opera
tions money will tend to become
easier again. The London money
market has been experiencing devel-
opments Of this character since early
in the war. Here the Federal Re-
serve banking system can be relied
upon to render impossible any dan
gerous flurries in money rates, al
though it is generally admitted that
the period of great ease has passed.
In the July letter of the First Ma
tional Bank of Philadelphia, William
A. Low, president of the institution,
makes interesting comment on the
business and financial situation. He
says:
"The country is fast abandoning
the dangerous theory of short war
and is preparing vigorously for the
most formidable campaign that the
United States has ever engaged in.
| With the actual arrival Of our first
expeditionary force in France and
the extraordinary efforts by the
Council Of National Defence to get
the nation upon a war footing as
quickly as possible, it is becoming
each day more apparent that the
most costly miscalculation made by
Germany has been the United States.
"The canvass for the Liberty Loan
and the raising of S115, 100000 with
in seven days for the Red Cross war
fund have been helpful to the coun-
try in solidifying its citizenship and
making the people realize that war
has become the nations chief busi-
ness. This in itself was a great
achievement, as our European allies
IN the opening days of the war found
that many painful experiences were
required to arouse the people to that
point Of efficiency where they became
fighting mad The difference be-
tween this state of mind and the at
titude of complacent assurance is the
difference between the old-fashioned
black powder and high explosives.
The foe which mistakes the United
States for a black powder country
has signed its death warrant.
"It looks as if the United States
government could float another 3k
per cent war loan if the money mar
kets remain as undisturbed as they
are to-day. The forces organized TO
| float the Liberty Loan are studying
carefully to make the service more
efficient, so that the lost motion in
evitable in initial undertakings of
such'magnitude may be avoided when
the next appeal is made. OF all the
concerted efforts put forth to make
the Liberty Loan the overwhelming
success that it was, none was more
| productive than the campaign un-
dertaken by the American Bankers
Association to arouse the banking
fraternity to the need of placing the
bonds with final investors. This
movement, quietly undertaken but
vigorously pushed, sold the bonds as
nothing else sold them, since it was
the country banker who rendered the
greatest missionary service in per-
suading the little investor to enlist
his hard-earned cash in this novel
undertaking. 1t has advertised the
bond market in remarkable way,
since Of the four million people who
subscribed for Liberty bonds, prob
ably not more than two hundred
thousand of them-or 5 per cent
had ever invested in bonds before
This means that the great body of
bond statesmen who so unselfshly