New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-27
Result AmaZeS Chancellor
and Causes Enthusiasm
in Commons
EXCELS GERMANY'S
GREATEST EFFORT
Victory for Government in
Obtaining Subscriptions
at ) Per Cent

London. Feb. 26.-There was d scene
Of great enthusiasm in the House OF
Commons to-day when Andrew Bonar
Law. Chancellor Of the Exchequer, an
rouDced the result Of Great Britain s
third war loan. which is by far the
greatest voluntary contribution by the
people Of any bolHgerent nation. More
than $4,000. 100000 Of new money. with
more than 100000 subscribers, are
the stupendous figures which the Chan
cellor confessed he would have thought
IL impossible 20 raise only few days
The loan has resulted in a striking
victory for the government over the
professional financiers, since bankers
had advised the Treasury Department
that IL could not be foated at less than
8 per cent. The Chancellor at the time
declared that he preferred TO rsk tail-
ure i'm an attempt at per Gent loan
rather than 10 place 6 per cent as the
standard Of the nations credit. The
Chancellor's highest expectations had
been for 3,0OO,OO0,OO0 Of new money.
The total Of "new money includes
the conversion Of nearly S654.Coo.Uoo
short term Treasury bills. and there IS
difference Of opinion whether. they
should be regarded as such, some man
cicrs taking the negative ground that
they represent money which the gov
eminent already has spent.
Applications for Subscriptions
The Chancellor said applications had
been received for subscriptions TO the
war loan as follows:
Through the Bank OF England. 81
OqT.6S0,00O: Treasury bills, S653,32s'-
100: through postofices, $3.50 5,Voo'
war savings certificates. S96,545,OOV'.
OF the amount applied for only
$4,000. 900 is in the form OF tax free
loans, the remainder being all IN o
per cents
The Chancellor said he had includes
treasury bills as new money because
they represented obligations winch hau
10 be met by the state in short TINS,
and he thought he was right IN CON
siderinC that freeing the state from
these obligations, TO whatever extent
u.as in eject equivalent 10 new money.
The 1915 loan, said the Chanceilor'
had realized S8.OS0. 100000, Of when
s1 ono 600 900 had been directly sup
pIied bv the banks. IF there were no
necessity for il, he added 1t was un-
desirable 10 have these large subseup-
tions from the banks II the need mad
arisen he had been prepared hlmseIt
20 make o similar appeal 10 the banks,
which had themselves promised sup
port.
nrevious loan was 100 900. The num-
Der Of subscribers 10 the present loan
through banks. postofices and war
savings certificates, the Chancellor an
nounced. was approximately 5,2S9'Ooo'
British and German Loans Contrasted
Bonar Law pointed out particularly
that while the German loans had sue
cessivelv become smaller, the Brlusn
loans had increased in size. The cost
Of floating the present loan, including
advertising, was only $4,000. A num-
her Of persons had made gifts Of
money. Others had put in money
amounting TO S9S0,O00, free Of interest
during the war, while many, prlnc'-
pallv women. had sent gifts or JeWelTy,
One woman had written saying she mao
no money, but enclosed bracelet %
be turned into q bullet. .,
The Chancellor paid tribute 20 s.l
those concerned in the issue Of the
loan. attributing It's success to one
cause. "the patriotism Of the people
Of this country" Il was the expression
of the will Of the people Of this coun,
try 20 win the war, he declared, and
the result Of the loan was an evidence
Of the financial ability Of this country
TO see the war through to q successful
conclusion.
The war savings certificates included
in the Chancellor's statement are GER
tifcates purchasable at l5 shilling.
and s pence each. and upon which 81
is payable five years hence. They are
issued through the postoftce, and arc
absolutely free of income tax up "a
the value Of $500 for each Individual
holding them.