davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
By EUGENE E. AGGER
Associate Professor Of Economics IN
Columbia University

Associate Professor Of Economics IN
Columbia University
TIME first Liberty Loan was an
undoubted success. Over four
u million people subscribed to
it. and their combined subscriptions
totalled fully so per cent more than
was asked for. By all the tests ordi-
narily applied to projects Of this
kind Mr.. McAdoo was justified in
making the enthusiastic comment
attributed to him.
Yet, looking at the whole matter
candidly, there are certain weighty
circumstances that bid US check
somewhat our national habit Of as
Stunning that for us "the blue sky
alone is the limit" The first loan,
instead Of lulling US into a pleasant
belief that cts all over but the
shouting" ought to warn us that for
future issues a mighty effort must
be put forward.
In the first place, many Of the ele-
ments that contributed to the sue
cess Of the first loan can hardly be
expected to contribute in the same
degree to the success Of those which
ere to follow. Thousands OF indi-
viduals, at heavy sacrifice to per-
sonal interests-except the splendid
one Of "doing ones bit"-jumped
right in and tried to make bond
statesmen out of themselves. Ordi-
narily no brilliant results could be
expected from such self-immolation,
because selling bonds is a specialized
calling; but it happened that selling
Liberty Bonds required only patri-
cite enthusiasm and q strong sense
of duty. The salesman was in the
position of the mother at the wood
shed door urging reluctant dad to
"do his duty" when young Willie's
moral future depended upon a lib
cral application Of birch. Most peo-
ple felt it their duty to buy bond,
and needed only to be presented with
a subscription blank to induce them
10 "come across"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
Pleasurable Consumption
Must Be Curtailed

Our present economic system in
wolves the regulation Of production
through exchange. The process Of
exchange itself is carried on in
terms Of money. Every producer
measures his own results, not in
terms of concrete goods, but in
terms Of money received for them.
As a particular goods tends to go up
in money price there is growing in
cent;ve 70 increase its production.
Hence, through changes in prices
offered for goods in the market, the
necessary readjustments in produc-
ton are effected.
The proceeds Of taxes and bond
sales are received in money funds,
but what the government really
needs is concrete goods, in the shape
of guns and munitions, ships, cloth
ing supplies, etc. By going into the
market and bidding for these things
it 10 assumed that to whatever de-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
Thinks Minimum
Price Necessary

Z. NJ. Wing, president of the Ba-
tavian National Bank of La Crosse,
Wis, says that the difficulty of Dor
rowing money for the crop move
ment will depend largely upon the
action taken by the government.
He says:
II the exchanges are going to be
closed so that the grain buyers can
not sell futures against their cash
purchases the government must fix q
minimum price. II that is done there
should be no trouble in getting all
the money necessary to move the
crop. The call money rate in New
York has no real significance so far
as the rest of the country is con-
cerned, but, as matter of fact, that
and the surplus reserve in New York
have a tremendous sentimental in
fuence. The miRute there is an eX-
cess reserve in New York the brokers
use that TO pound the money market
down all over the country. think IL
is fortunate that we have the Federal
Reserve banks, as the rcdiscount ia
cilties of those banks must be used
during the crop movement. Whether
or not the system will provide sure
protection against money stringency
remains 10 DC seen. But there is
every reason TO believe that il will be
sufficient unless some conditions OF
panic should develop TO add to the
strain.
The new reserve requirements are
not adequate, and they must be sup
plemen.ed by reserve city balances
and large supplies Of till money.
While we are required TO carry on an
average of 5 per cent against our de-
posits, we find it quite impossible to
do business with less than 20 per
cent cash means. In my opinion, the
greatest money market problem of
the coming six months will be the
financing Of railroads and industrial
concerns which may require longtime
loans.
George B. Pendleton, secretary
and treasurer of the Trust Company
of Georgia, Atlanta, Ga, believes
the floating Of the $4,000, 900, 900
government loan constitutes the
chief problem of the money market.
He says:
look for considerable increase
In money rates this year. There is no
doubt in my mind that the crop
movement will be more difficult, ov-
ing 20 the government borrowings
and war complications I consider
The fsesnt 10 per esnt csii monsy
rate at New York reelected conditions
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
Will Be Harder to
Arouse Enthusiasm

But now there is bound to be a
feeling of virtue attained" on the
part Of a great many, and it will
take more persuasion and more real
enlightenment to win a second sub
scription. Then, too much of the
voluntary work freely done in con-
nection with the first loan cannot be
relied upon for subsequent issues.
Individuals, banks and other bust
ness firms gave amazingly Of their
time and money to show Potsdam
that we meant business. But now
that that particular demonstration
has been made, it is doubtful
whether subsequent loans will have
the same appeal, and it is hardly
good economic judgment to distract
peoples attention from their own
jobs, in which, presumably, they are
SPECIALISTS, in order to try to make
bond statesmen out Of them.
In the second place, we must
measure our job not on the basis OF
what was raised in the first loan,
but rather on the basis Of what will
have to be raised in the future. A
two-bilion-dollar loan looked big to
Us 1t was big. Yet the English
budget for the next fiscal year calls
for an expenditure Of over eleven
billions; and reliable authorities tell
us that we cannot hope to get off for
less. Mr.. McAdoo has already asked
Congress for an additional five bill.
ions. Much ought to be raised
through taxation. but even al
Loving for considerable increase in
taxation, we shall have to raise from
sig to eight or more billions per
annum through bond sales. More
over, our annual income is probably
somewhere around forty billions.
Enthusiasts run it up as high as
fifty billions. But, whichever of the
two figures we take, it is apparent
that to get adequate subscriptions
we shall have to persuade not mere
ly per cent, but probably over so
per cent of our people to become
bond buyers.
To understand just what this task
implies it is desirable to see clearly
what the process Of lending implies.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05

that will be stupendous, but atten-
ticn will be so concentrated upon
il and there will be such desire to
facilitate its progress that it will go
along as smoothly as did the Liberty
Loan-but the big difficulty will be
the burden thrown upon the large
corporations and firms Of raising the
enormous amounts they will be re-
quired to pay in taxes. The values OF
raw material and products are so
high that much larger than usual in
vestments are carried in inventories
and merchandise accounts. The sug-
gestion has been made that the
heavy excess taxes be payable in in
stalments and that special regula-
tions or legislation be enacted to as
sist large taxpayers in financing
these payments by borrowing from
banks with the proviso that the re-
sulting paper be discounted at the
Federal Reserve banks upon favor
able terms"
Charles A. Hinsch, president of
the Fifth-Third National Bank of
Cincinnati, anticipates a good de-
mand for money during the balance
Of the year." and thinks that the re.
discount facilities Of the Federal Re-
serve banks will be called upon this
fall to provide the necessary funds
to handle the crops and to finance
the Liberty Loan. Most banks, in
addition to the reserve required by
law, are carrying ample cash re-
serves and about the same balances
as formerly with the Reserve city
banks. These balances constitute
secondary reserve that can be utl-
lied promptly to take care Of unex-
pected Withdrawals of deposits. 1t
is to be hoped, he says, that dis
count market will be established in
New York, so that full advantage
may be taken Of the facilities offered
by the Federal Reserve system in
the way of rediscounts. Many banks
still have a prejudice against show
ing a bills payable account, or redis-
counts. We must eradicate this feel
ing if this country expects to become
a great financial centre.
"The outlook in this section, gen.
orally speaking, is good, although
there is some hesitation at the pres
ent time on the part of merchants
ond manufacturers in placing orders
CT account of the pending legislation
pertaining to the fixing of prices by
Congress. Until this legislation has
been disposed of we do not anticipate
business will assume a normal con-
dition. The tremendous purchases
being made in this country for the
Allies and to equip our army and
navy are such as to insure a contin-
uation of good business for many
months tn come"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05

savings, rather than funds newly e,..
ated by banks, the demand arisin,
from them is a transferred end not
n neViy created demand. The evil,
Of initiation are thus avoided.
Then there is the further question
Of the distribution Of the subscriD.
tons. II the subscriptions are mad.
by the relatively few who would
have saved anyway the net result |,
simply the transfer Of funds from
private to public securities, involv.
ing the curtailment Of capital 70,
private enterprise and consequen.
interference with production. II,
however, the subscriptions can b
widely scattered among people who
have never before been bond buyers
the chances are that the subscrip.
tions will necessitate the reduction
of individual expenditure and will
stimulate saving that would not
otherwise have been undertaken.
Pointedly put, our task in connec.
tion with future multiple-billion
bond issues Is, therefore, to trans.
form about half Of our population
from rather riotous spenders into
frugal savers. Every possible means
Of persuasion must be employed TO
induce people to practise grester
thrift-not for the sake Of private
boarding, but specifically for the
purpose Of buying bonds. This rum
somewhat afoul Of the anxious mer.
chants lnsistence upon business as
usual" but there Is no use trying
to blink the fact that in war times
much usual business must be given
up. Emphasis is to be placed only
on those lines contributing directly
to national strength and efficiency.
Expensive flowers, gaudy raiment
and JOY riding are not very Of.
fective against U-boats.
To achieve the desired end n well
organized and thoroughgoing educa.
tional campaign is essential. Every
possible agency whose cooperation
will help to bring home to the people
the nature Of the task before US and
the responsibility Of every man,
woman and child in connection with
it ought to be enlisted in the service.
The lesson that must be brought
home is simple. 1t is that the wealth
needed for carrying on the war Is
going to be taken by the govern.
ment, and that, willy-nilly, the peo.
pie of the United States are going
to economic to supply it. The only
question is whether the necessary
economy Is going to be imposed upon
us through initiation of bank credit
and a consequent soaring Of prices
with all the misery and hardship
that that entails-or whether the
people will order their own affairs,
supplying the government with the
necessary funds through the prac.
tice of voluntary economy, avoiding
IN this way most Of the evils Of in.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05

james a. LdTta, Nlce-preSldent OF
the Northwestern National Bank, of
Minneapolis, takes hopeful view:
I do not look for any exceptional
rise in money rates this year. While
financing the crop movement may
necessitate some unusual borrowing
or rediscounting by banks, do not
believe it will be difficult to handle.
l do not believe the recent 10 per cent
call money rate had any special sig
niiicance and do believe it reflected a
temporary and largely local condi-
ton. Most banks, in my opinion,
will find the legal requirement must
be supplemented by considerable sup
plies of till money, and reserve city
balances will. naturally and unavoid-
ably, be maintained in the handling
of commercial transactions, the flow
Of products being toward the East.
P. w. Goebel, president of the
Commercial National Bank of Kan
sas City, Kan, and president of
the American Bankers Association,
expresses the view that the greatest
money market problem of the COM
ing six months will be to keep down
speculative ventures" He thinks
also that funds for productive bust
ness will be ample. He adds:
! do not look for any exceptional
rise in money rates this year. The
crop movement will be no more diff
fcult than usual, as the money the
government borrows Is being ex-
pended in this country and drifts
back to the channels from which it
came. do not think there was any
special significance in the 10 per cent
call money rate in New York. think,
perhaps, that il was due to the desire
TO curb speculation. The rediscount
facilities Of the Federal Reserve banks
will be used more and more in fnanc-
ing crop movement and think the re-
sources of the Federal Reserve banks
are ample to provide protection
against money stringency. The new
cash reserve requirements can be
supplemented by considerable sup
ply of till money and balances in Re-
serve cities which are created by col
lection items. | do not think it will
be any hardship for banks to keep
these additional balances.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
COMPLEX MONEY PROBLEMS OF AN
ABNORMAL HARVESTING SEASON
Sdght On the Unusual Situation Created American Agriculture and finance
By HUGE War Loans Coming Time When the Highest Priced
CROPS in History Must Be Carnered Without Delay

only in that market. The rediscount
facilities of the Federal Reserve banks
will be extremely useful in financing
the crop movement, especially in view
Of the situation caused by the war. |
do not look for any marked money
.tringency, and believe the Federal
Reserve system provides a safeguard
against contingency Of that nature.
/ consider that the new cash reserve
requirements will be adequate.
George E. Pearsall, vice. president
of the Iowa National Bank, Of Des
Moines, sounds this note of optimism
from the Middle West:
In this Middle West country we see
nothing but very prosperous times
ahead Of US. Our small grain is a
fine crop both for quality and guam.
tity. The corn crop looks promising
and nothing but an unusually early
frost can stop a very large crop. We
do not see anything to increase rates
for money to any great degree ex-
cept the high price for products,
which will necessarily take more
money to handle them. We feel the
rediscount facilities Of the Federal
Reserve banks will help in the move
ment Of the crop this year to better
advantage than ever before. We have
some anxiety about the prospect of
getting cars to move the crop In the
event that the government is using
them very extensively.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
Production Must
Be Increased


Emphasis must also be placed on
stimulated production. We can meet
the governments need not only By
consuming less ourselves, but also
by producing more. But how can we,
as individuals, working, LEI US as
sumo, at relatively small jobs in big
businesses-how can we, il will be
asked, produce more? Simply BY
working harder and more faithfully
than before. But, you will say, that
is simply playing into the hands OF
the firm, with no apparent beneht 70
me. In a certain sense, assuming
that no increase in salary or wages
is obtained, that objection is vel
taken, but the fact remains that as
we look beyond the firm to the So
cal group as whole we see that our
firm and all other firms are the or
gained agencies that are to-day re.
sponsible for wealth production, and
every worker in every legitimate
business may regard himself not only
as a worker in the interest OF
particular firm" but also as
worker in the interest Of the nation.
Urging every worker to work as
faithfully as the maintenance OF MS
efficiency will permit may seem IKE
counselling perfection, but IN tn'
long run increased output can be o.
tanned in no other way.
Lastly may be mentioned the DE-
STABILITY of having the government
frankly recognize that the best way
to get people to save more systemsu'
cally is by offering adequate induce
ment. This involves not only ques'
ton of interest rate, but also sueh
matters as the issue Of thrift certln'
Gates in small denominations, on 50"
at postotfices and similar agencies
arrangements in cases Of emergehe!
for cashing in OF borrowing on Ger
tiicates purchased, etc.
1t may be concluded, therefo'''
that while, rs far as our basic ecu
monte capacities are concerned W.
ought to be able to raise without oil.
ficulty any loan that the government
is likely to put forward, the actu'
accomplishment Of the task in a say
isfactory way will depend vitality On
the way the people get behind "
Intelligent handling by the govern.
ment and teamwork by the Peep"
will see US through. s,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-05
No Money
Pinch Expected

James A. Latta, vice-president of
the Northwestern National Bank, Of
Minneapolis, takes hopeful view:
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
BY AUTHORITY.
IN THE MATTER OF THE PETITION
OF MICHAEL SHKODAREwICH
FOR A CHANGE OF NAME.
Decree Of Change Of Name.


In consideration of the Petition OF
MICHAEL SHK0DAREWICH ofnthe
City and County of Honolulu, Terri
tory of Hawaii, for decree changing
his name to MICHAEL 8. CLARK.
and there appearing to be good rea-
sons for granting the said Petition:
Now. Therefore, by virtue Of the lau-
thority in me by law vested and me
hereunto enabling, !, LUCIUS =.
PINKHAM, Governor OF the Territory
of Hawaii, do hereby order and decree
that the name OF MICHAEL SHKODA-
REWICH be and hereby Is changed to
MICHAEL s. CLARK, and that copy
of this decree be published for &C least
four consecutive weeks in the Homo
lulu Star-Bulletin, a newspaper pub
lished in the City and County of Ho.
nolulu, Territory of Hawaii. ~
Dated. at Honolulu this 18th day Of
January, A. Z. 1917 a - seb
(Sgd.l LUCIUS e. PINKHAM,
Governor OF Hawaii.
l hereby certify that the above IS
true and correct copy Of decree chang
ing the name Of Michael Shkodarewich
to Michael s. Clark.
(Sgd) WADE WARREN THAYER,
Secretary Of Hawaii. 80
6693-Jan. rs, Feb. 2, 8, 16. %.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
NOTICE TO CONTRACTORS.

Sealed tenders will be received by
the Trustees of the Bernice P. Bishop
Estate up to II o'clock noon of the
End day of February, 1917, for the Con-
struction of Coral Roads, CURLING, Gull
vert, Fencing and Water System, at
Waialae, Honolulu.
Plans and specifications may be had
upon application at the office of the
undersigned, No. n Merchant street.
All tenders must be in sealed en-
velopes addressed to the Trustees of
the B. p Bishop Estate, Gland Agency
Department.. A certified check for 5
per cent of the amount bid shall ac-
company all tenders. The Trustees of
the B. p. Bishop Estate reserve the
right to reject any or all tenders.
BY order of the Trustees.
G. H. GERE,
. "a Superintendent,
n Merchant Street, Honolulu
6683-Jan. Is, 16, II, 20, %, %, 20;
Feb. 2, 1917.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
SEALED TeNoERs.

Sealed Tenders will be received up
until II a. m. of Thursday, February
s, 1917, for the Construction Of q
Dining Room Building for the Oahu In,
sane Asylum, Honolulu, T. H, s
The Superintendent Of Public Works
reserves the right to reject anysOr all
tenders. as,tfass
Plans, specifications and blank forms
Of proposal are on file In the office Of
the Superintendent Of Public Works,
Capitol Building, Honolulu. g,.t ~.
w. C. WOODWARD,
Acting Superintendent Of Public
Works. fl.a
Honolulu. Jan. 26. 1917.
6693-10t ,lt =, sIa5
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
cHIRoPoDlsT
PALMIsTRY

Nine Cleo, Gifted Palmist, without
asking question and having no nat
ural means of knowing who you are,
reads your life like an open book.
Nine. Cleo is the highest authority
in her honorable profession, her adj
vice is sought by all who want to be
successful in their undertakings,
therefore consult her today If you
are in doubt as to business change.
Love affairs, marriage or health,
she can help you and makes no
charge until after your reading. Sat.
isfaction guaranteed. Readings, $1.00.
Hours 8 to IL, / to 6, Evenings by
appointment. Phone 1906. Parlors
254, s. King, cor. of Richards street.
6659-tf
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02

. PROPOSALS FOR CONSTRUCTION
Office of Constructing Quartermas-
ter, Honolulu, T. H.-Sealed proposals
will be received here until HOO a. m,
March 2, 1917, and then opened, for
the construction of five reserve store
houses, steam and electric railroad
connections, street pavement, surface
drainage, water supply and sewage
disposal at Fort Shafter, T. H. Fur
Their information on application.
6697-Jan. 81. Feb. /, 2, 8, %, Mar. 1.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
EVA PLANTATION COMPANY.
ANNUAL MEETING.

Notice is hereby given that the an
nual meeting of the shareholders Of
the EVA PLANTATION COMPANY
will be held at the office of Castle, &
Cooke, Limited, at the corner Of Fort
and Merchant streets, in the City and
County of Honolulu, Territory Of Ha-
waii, on Thursday, February Is, 1917.
at 10 o'clock a. m.
T. II. PETRIE,
Secretary Eva Plantation Co.
Honolulu, Hawaii, january 81, 1917.
669S-12t ea
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
NOTICE.

Relative to notice in this paper OF
January 29, permit me to state that
have never put forth any NOTICE
that have sold Haliaka Kapela's land
at the Eva corner of Queen and Mill,
lani streets; I don't care, don't want,
and never intended at any time to put
forth any such notice.
# CHAS. A. K. HOPKINS.
y" 66S7-3t
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
AUCTION BULLETIN

We had plenty of furniture on Tues
day. 1t was all sold. We can ham
die all the used furniture that you
can possibly sell us, to your satisfac-
ton as to price and handling, all
risk and trouble falling on us. Now
is the time and this is the place, the
past is but story and to you go all
the profits-to us the glory of sue
cessfully selling any and all grades
of furniture. The kind we want is
the everyday kind; plain useful
goods that fill the aching void now
so empty in our midst. Therefore
let US know at once what you have
to sell in the line of FURNITURE
and Honolulu Auction Rooms, ]. s.
Bailey, will sell it
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
HOTELS
THE PIERPoINT.

"On the Beach at Waikiki"
Furnished bungalows and rooms; ex
cellent meals; splendid bathing and
boating; 1O00.foot promenade pier;
beautiful marine and mountain
view; terms reasonable. Mrs. John
Cassidy. Tel. 2S79. S202-n
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
NOTICE.

The annual meeting of the German
Benevolent Society will be held at the
office of H. Hackfeld & Co., Ltd, on
Tuesday, February s, 1917, at o'clock
p. m. All members are earnestly re-
quested to attend.
-- EMIL KLEMME,
ill., Secretary.
'-.... 669S-3t
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-02-02
NOTICE.

Intending deck passengers per the
steamship "Mauna Kea" sailing from
Honolulu, February 3rd, are hereby no
titled that all Main Deck space has
been sold.
INTERISLAND STEAM NAV.
. CO., LTD.
Honolulu, T. H., January 80, 1917.
6697-3t