The Washington herald., 1917-05-03
LIBERTY LOAN OPENED
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SONAlNuED fHOM PAGE ONE.
Treasury has determined upon a policy
OF making the loan available to every
man ana woman In the country by pre-
pairing small denomination bonds
/ The administration is eager that Amer
leans in all walks OF life lend what
amounts they can spare to the govern
ment, To absorb the bond issue every
man, woman and child in the country
must advance the government $50, theo-
retically at least.
The twelve Federal Reserve Banks, in
their capacity Of fiscal agents of the
government, will act as central distribu-
ting agencies for the Liberty Loan. The
managers of each of these hanks will
constitute committees to handle the taxi
ing OF subscriptions in their districts.
They will be expected to organize theil
communities to get the best results from
this war fund raising campaign, and also
will have charge of the allotment and
delivery of the bonds after the financing
is completed
Bushes men in the several districts,
as well as bankers. will be formed into
committees to assist in arousing local in
terest in the loan and in handling the
subscriptions q.
All banks. including national banks,
| State banks and trust companies, saw
! ings institutions, private banks, and bond
I
| participate. in the selling of the bonds.
In addition, government agencies exist
| Ing for other purposes Will be utilized
| Postmasters. internal revenue collectors
collectors OF customs, express companies
| department stores, newspapers, and other
business establishments will be used In
| the distribution Of the bonds. Secretary
McAdoo has been flooded with patriotic
offers of assistance from all classes OF
| business men and organizations.
Women oner Services.
Numerous women's organizations have
| offered their services in assisting in the
| bond selling, and Secretary McAdoo plans
to organize a central women's commit
tee to take charge of this work. Under
; this committees general supervision
women's clubs in all parts Of the coun-
! try will be organized to advance the gen.
eral cause.
The $2,COO, ,0Oo, 900 loan is depended upon
/ to take care Of the needs Of the Ameri-
| can government and its allies for the
! first few months of the war. The funds
will be apportioned in accordance with
the several needs of the various powers.
The great bulk of this vast sum OF
money will be expended in this country
| for war supplies needed not only by
the American military establishment but
| by those of the entente allies
For this reason, Secretary McAdoo 10
confident that the American financial and
business world can comfortably absorb
] the huge loan. He has held many con-
, ferences with bankers and business men,
and they have told him that. inasmuch
as most of the funds withdrawn from
| the banks for bond purchases will speed
| lily find their way back because OF the
huge expenditures, no severe contrac-
ton will be felt. Secretary McAdoo plans
| to leave on deposit in the banks as much
Of the subscribed money as possible,
merely transferring the credit from the
present private holders of the funds to
the government.
Exempt from Taxation.
Secretary McAdoo pointed out last night
| that the war bonds are exempt from
Federal. State, municipal and county
taxation, except as to the Federal in
heritance tax.
The Treasury desires that subscriptions
be sent to the Federal Reserve Banks,
whence they will be forwarded to the
government at Washington. This will
| facilitate the handling Of the work. The
whole system Is to be built UP system
aticaliy. Small organizations are to be
formed in practically every city and
town in this country. These will re-
port TO central committees, which will
report to the reserve banks.
| Announcement Of the declaration OF
| the mammoth bond issue was made at
| o'clock last night. following conferences
| between Secretary McAdoo. Mr.. Arthur
James Balfour. head of the British mis-
sion, who outlined the allies needs; Lord
Cunliffe of Headley, governor of the Bank
of England: Sir Hardman Lever, of the
British Mission; members of the Federal
| Reserve Board, and Assistant Secretary
of the Treasury Crosby, who has had
charge of much OF the involved detail
| connected with the mechanical end of
the preparation for the issue.
| The Treasury now is preparing a 81
| gantic advertising campaign in which
| the patriotism of the whole citizenship
will be appealed to to make the liberty
loan a success. Secretary McAdoo has
received many assurances that the big
| loan Will be absorbed and now Is await
ing realization of those assurances