Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-06-02

i NEW YORK, June Q.
Ma longer is there any doubt that TN, the
S.or,ntions 10 the Liberty Loan Will
suvsSSt satisfactory total As matter OF
Teaeen 20 Ssai question has at any time since
iacI ods ~ we're announced existed IN bank
the pU sunias In wall Street. But It was con-
~ iss.ssd necessary and advisable to take the
snsin,,stjc view in order to make a thor
pp,gblv impressive appeal TO nnanclal pa
trlotism. ,- Co.. irstance announces
O"T nv, Win take $75,O00,000 in subscrip-
una Tho National City hopes TO exceed
~ amount and everybody who knows
ts' We ,iNational City crowd Is Wen aware
!ss, 4 intends to outdistance all compete
@ .la' reqardless of any contingency. Chi
tors honts Il is well known here, have de-
casS, ssS,ned 10 register the strength of the
.s,I.. The loan IL may be said, is only
~. ,eeginning to move" and during the
yissire fortnight of the subscription (the
sOS sooKs close on June 15) some very spec
,.cnar developments in national finance
nav confidently be expected
OTHER REQUIREMENTS SHUT OUT
a. of the most convincing indications
=, ibe approaching situation Is the vir-
Gory complete shutting down of all other
sorns of application on the capltal market
pankers at the present time would con-
- a unpatriotic to enter upon new cor
sorata financing of any character Thus,
r. reoord of new capital issues for May,
HS,h ie inst available, shows the smallest
,oiune OF new securities for any month
since the first six months of the war, when
financial affairs at home and ABROAD were
throvn into such complete disorganization.
prr;rg Nav the total of all issues Of
hands notes and shares was only
iIs,SOO,OOO.
Individual subscriptions to the Liberty
loan are likely 10 prove somewhat dis
snnointing This of course, has been the
experience abroad in the earlier loans and
is due 10 the fact that 1t takes not only
tine but spectacular developments, such as
alr raids or destruction OF merchantmen
and hospital ships and similar crimes. to
arouse popular appreciation of the fact
that the nation is really at war, and also
an adequate appreciation of what war really
means
,ration for draft service occurs before the
rloslng Of the subscription books will, Wall
street believes, aid in the greater success of
the popular subscriptions. 1t Will, in the
hrst place, prove an effective agency indi-
eating the virtual seriousness of the war
itself, and will provide the added stimulus
10 volunteer contributions OF a financial
character as compensation for the absence
OF personal enlistment,
In later loans, which, of course, will fol-
low the present one, this personal incentive
NAV be expected to show Itself with in
creasing strength, especially when, as in
due course must happen, the stage of ma
tional sorrow shall be reached and the
cables begin to tell OF the losses of AmeTi
can boys, the sinking of American war
ships and other of the natural concomitants
bf actual participation in the greatest war
the world has ever seen, and n war in
which one side in its desperation has de-
cided upon every conceivable form of fright
fulness and barbarity ,as the only means
Of continuing the struggle. Increasing Sc
rousness will mean increasing contribu-
tons by citizens Of their wealth Mean
while the banks and capitalists recognize
they must start the ball rolling
SMALL TENDERS GET ALL
In the event of a large oversubscription,
the smaller tenders will receive allotment in
full This is indicated clearly in the ar
rangements that have been published where
by all subscribers to the amount of $4,000
or less can arrange at once to pay their
Subscriptions in full and receive their bonds.
Larger amounts will require notice of a
desire to pay in full. What really is hap
pening OF course, is that the institutions of
the country are in reality underwriting the
loan The totals as already noted would
be impressive and will be the best thing
mat can happen as preparation for the
additional loans that must so closely follow
the one that now is being offered.
The major part of the proceeds of the
current Offering will naturally go to the
: Allies, to enable them to repay the ad-
fanees our Government has already made
10 them and to place them in a comfortable
position for meeting contracts for supplies
mat they have ordered and are to order
on our side Of the Atlantic. The advances
shat have been made to the Allies by the
treasury Department now amount to about
flOOO,OOO 900; thus one-half the proceeds
Oh the new loan has already been spent. 1t
VIII De necessary to offer additional bonds,
ana u there is as at present appears prob
aple' huge oversubscripton of the cur
rent issue, it seems safe to assume thGt
shsht difficulty will be experienced l.,
financing an additional issue. This especial
VIII be so in the event of the fighting
ue'eopments between the present time and
.ne cate of issue being such as to thorough.
arouse the war spirit throughout the
country
Next to the banks, trust companies etc,
.ne largest subscriptions may be expected
rom the men Of large means who have
y me new bond an opportunity of switch
~ Hom income-bearing securities that are
.aAape TO the new bonds which are exempt
m n9m not only income taxation but from
V'ulhary taxation as well. John D. Rocke-
ishsr' lor Instance has this week increased
ny Individual subscription to $15,000,000.
tnere ", OF course, no certainty that in
~ particular instance there has been
selnng OF other securities In order to re-
invest the proceeds in the tax-eXempt
YOnos However. his large subscription
nay De regarded as convenient example
tne incentive that exists to switch in
comes
~ seems to be agreed that the final result
~ income taxation in the new revenue
~ VIII be particularly drastic as to the
e.ser Incomes. total of probably 40
eeht-perhaps more-is 10 be assessed
soh incomes of more than $1O00,000 per
~ 10 provide the assessment basis all
seiS Oh such incomes that are not subject
A&ation will first be deducted. II at
Nv becomes evident that II Mr.. Rockefeller
~ say per cent bonds whose interest
sy,Inuiputes =, nliutes to increasing his income above
ks,yyv,VVO per annum, then that part Of his
t.e tne VIII be subject to a 40 per cent
mus bringing the net income basis
e : per cent bonds down to "a per
,ss 2 total that is not comparable either
tSeurn Or in the safety of the security
~ the Sh per cent Government bond.
1. ne number Of incomes above 81 000, 900
E course, not large and the Rockefeller
es4nee Tor that reason may TO some ex.
~, ,. pe regarded an exaggeration. Never
rtass rssss indicates how the same general
Elspie would apply TO the incomes OF
gS17ahqs OF other and smaller millionaires
l4 Explains the recent liquidation that has
E-su place in many standard investment
hulues. There can be no question that