The Washington herald., 1917-05-22

Until the Secretary of the Treasury.
| william G. McAdoo, on Wednesday Of
last week signed a Treasury warrant for
tlO.OoOO for Russia IL has been COM
monty said that the real fine acial dra-
matte moment in the United States since
the beginning Of the war was at the time
or the announcement that New York
mad raised upon the instant 500 900 900 in
eoId wherewith to enable the city Of
New York to meet pending obligations
abroad. That action was almost instant
~ followed by another operation con-
! CelEeo almost overnight entailing nation
"loe use OF the telegraph so that bank
ers all over the United States could be
INFORMED Of the plans whereby another
tloooNo in gold was raised within a
rev Gays for the purpose Of giving relief
'roih the dangerous exchange condition
Each or these sums Is equal to the
amount which the United States has ad-
! Vanced to Russia and one OF them renre-
sehts another feature Of this latest trans
acuon' for Russia secured 500 600 O0o soIe
~ upon the pledge OF national honor and
credit, made visibly evident by a nrorn-
issory note. New York CITY. in Ie1I 5J5
oner collateral security to the bankers
OF this city who raised upon the spur Of
the moment 800 ooo 600 in gold But tba
other SOoOoo,oO0 was obtained purely unon
creolt and through the co-operation ~
Oahks ana bankers Of the United States
In this earlier dramatic episode ~. ~
ueTtaKing was solely for the purpose Of
aldlng the business men Of the countrv
ano the city OF New York The Io.n
which was made to Russia seems 10 hsys
| oeen decided upon Of a sudden ana ba-
cause the Secretary OF the Tres s,,-v-
supPorted' II Is believed. by high fnan-
cial authorities Of New York and prob
ably by representatives OF the aIIias-r-,.
Z he
come for advanta EeousIy making n
known TO Russia, TO the allies and 10 the
central powers Of Europe that this corn-
try purposed fully backing Russia ana
was persuaded that the immediate ey-
lgencies in Russia justified the ertep5-
ing OF so great credit as 500 O0O ON
upon the sole pledge Of national honor
and credit.
1t was well-kept secret. for not ,,-+,r
noon Of the day when Secretary McE5oo
| drew the treasury warrant in fsvor ~
Russia was there any intimatfon. excent-
ing possibly in two or three Of tbe Ies5
ing financial houses OF New York that
this great transaction was to take nIsce
mat day. The first expls alton made
| ny all when the announcement came
| from WASHINGTON was this. This aid 10
! Russia will he Of advantage not only
wisely in influencing the Russian neo-
= pie. hut 1t will give advantage to the
/ United States. since Il will Inevitable
he followed by a restoration OF conf
dence." The securities ma kets instant
| ly reflected that restored c nfdence but
perhaps a more important effect will he
the influence Of that confidence in bring
ing larger and larger subscriptions 10 the
liberty loan Of two billion dollars.
Confidence and the Food supply.
For several days before the loan WAS
r IL
Occasioned by what was feared n be
reluctance Of the reopel TO subscribe 70
this loan. That reluctance was said TO
be due TO a lack OF confidence and not 70
lack OF ability. Probably the full effect
Of this loan to Russia unoa subscriptions
to the liberty loan will not be well
known until some days have passed. Yet
there are good many evidences that
the people throughout tho country, rich
as well those Of moderate means. are
now preparing to give adequate support
10 this offer Of the secretary Of the
treasury.
Another influence which is believed to
have served somewhat to restore conf
dence is occasioned by the belief that
whatever the peculiar characteristics Of
the crops may be. especially that Of the
wheat crop. nevertheless an abundant
supply OF food is to be harvested in the
United States In the late summer and
fall. Word reaches New York from
many parts of the country. and especial
Iy from the vicinity OF New York, which
justiies the belief that an enormous
crop OF potatoes will be harvested all
over the country. In fact. the prospect
for a record-mskinE harvest Of potatoes
seems now SO good in view OF the great
extent of planting, especially in hither-
TO untitled lands, that It seems likely
that the price OF potatoes next winter
may be very low. That Is something
however. which the government, II Con-
Eress gives II full powers, can so regu-
late as TO make Il certain that those
who cultivate potatoes will receive in
marketing them a sufficient price TO
bring to them a fair profit There are
also intimations that the chances are
better than was the case a week or more
ago for a larger harvest OF wheat than
was thought possible. Il is a common
estimate, too that the farmers are like
ly TO harvest next fall at least $500, ,oOo, 900
bushels OF Indian corn. including white