The Washington herald., 1917-05-17
HOLLAND LETTER
The Biggest Daily
Financial News Feature
of the Country's Best Newspapers.

the Secretary of the Treasury, Mr.. Nc
Adoo, the United States Steel Corpora
ton has taken 100000. This Is prob
ably so far the largest single corporation
subscription to the loan and IL does not
include such subscriptions as the corpor-
alton may make so as to facilitate the
placing OF the loan in small parcels with
employees. This subscription supplements
one OF $5.0O0,000 which the corporation
made for the short-time loan. II is pos
sible, OF course, that Judge Gary and his
associates may utilize these short time
notes In part payment of the subscrip-
] ton of SIS, 100000 to the longtime bonds.
In addition to these offerings, the steel
corporation has without any request on
the part Of its employees increased wages
the action representing the belief of the
managers that the employees should
steadily share in any Increasing prosper
ity OF the corporation. Furthermore, the
! corporation subscribed $4,000 to the
100000 fund which the Young Mems
Christian Association Is raising for war
work In the camps which are about to
be established. II may be that in per-
fecting the Red Cross organization upon
scale OF magnitude unparalleled which
Henry P. Dawson. OF J. P. Morgan &
Co., has undertaken at the request of
President Woodrow Wilson. there will be
cooperation with the Young Mems Chris
tian Association in war work in the
camps.
The attitude Of the steel corporation
toward the war and its ready response to
appeals comes at time when the Su-
preme Court has before It the appeal
made by the government from the deci-
sion OF the lower courts with intent to
secure from the Supreme Court, II nos
sible, a decision which will dissolve this
organization But at Washington the
very principle upon which the steel cor
poration is organized is now adopted by
those who have in hand the work of pre-
paraton, which Is much further ad-
vanced than the public suspects There
could not be rapid mobilizing OF re-
sources were it not for combination OF
capital. brains and labor. Some have
thought that the experience which the
country is now gaining and VIII continue
to gain, will teach the whole people the
economic soundness of the principle upon
which the great corporation have been
built, as well as the wisdom OF publicity
and of thorough government regulation
| Of them.
| The steel corporation was the pioneer
among all our corporations in adopting
the principle OF publicity between the pub
lie and the management, perfect fair
ness in dealing between labor and capt.
tai, and open books to one and ALL
! When Lord Cunlfte, who is the COVER
| nor of the Bank of England, was in this
city in the latter part of last week. he
was frank enough to say that Great
| Britain expected to continue shipments
OF gold TO the United States. and he
might have pointed in proof of that state
ment to the fact that upon the day he
spoke a large consignment OF British
gold came by way of Canada to New
| York The question is frequently asked
| why Great Britain sends gold into the
| United States, although she Is receiving
| and is again TO receive large amounts of
money borrowed here. Lord CunlIffe's
statement that this was due to the de-
| sire of England to aid the American
bankers in maintaining low rates in the
money market, was also supplemented
| by somewhat unexpected admission of
! the attitude of the British people to-
ward paper money OF small denomina-
| tions. For Lord Cunliffe said that the
! Bank of England is now issuing notes of
| the denomination OF about 81 American
money. whereas heretofore its smallest
denomination has been approximately $25
American money. It was a qualification
| to the British government to observe
that the people took kindly to paper
money Of small denomination. 1t has
always been the impression that they
could not he persuaded to use paper
money instead Of gold. Their experience,
| however. with these small denomination
notes which are redeemable in gold, has
| taught them the convenience Of money
of that kind, and It is unlikely that after
| the war Is ended the Bank Of England
will abandon the issuing of notes OF
small denominations.
This is exactly what Lyman J. Gage
when he was Secretary of the Treasury
| in President McKinleys administration
discovered to he the disposition of the
American people. For some time Sec
rotary Gage thought It the wiser part
to force gold into daily circulation as far
as possible. thereby refraininE from the
| Issuing of gold certificates. He made an
earnest attempt to do that, but he speed
| fly learned that the American people pre-
ferred gold certificates, very often de-
clining to receive half eagles or eagles.
but asking instead that certificates or
other paper money be given to them. At
last he abandoned the attempt and the
result Is that the people of this country
now are using very little gold in their
| daily or personal transactions. 1t is al
most all in the treasury and bank vaults.
When William L. Saunders intimated
the other day that invention was per-
fecting, in his opinion. apparatus which
would either put an end completely to
the submarines or greatly diminish their
activities. he undoubtedly then spoke with
| intent to allay good deal of apprehen-
sion that was prevailing. No one who
| knew Mr.. Saunders failed to he impressed
| by his statement He is a man of caution
| in the use of words, not given to Op-
| tlnistiC prediction. and speaks with the
| precision of a man of science. He is also
an expert mechanical engineer. The ap-
paratus manufactured by the companies
| with which he is associated is in use in
| all parts of the world. and many of the
countries Mr.. Saunders has personally
| visited. IT was surnised by his friends
! that he had received intimation from
| from some men of great inventive ability,
| with whom he was intimate, which justi-
! fed him in making the qualified state
ment. As soon as the announcement
came from Washington that Elmer
! SperrY. inventor OF the EyrosCOpe. was
! identified with certain apparatus under
consideration by the authorities at Wash
| ington, which. if tests justified eXpectA-
| tions, would greatly impair the sub
marines, If not completely eliminate
| them. then those who are personal &C
uuaintances Of Mr.. Saunders and who
! know of his abilities were persuaded that
| he had in mind the apparatus with which
| Mr. Sperrys name is associated. There
| fore. the impression grows that American
| inventive skill perhaps supplemented by
counsel and information received from
| England, will in a short time have per-
fected apparatus powerful enough not
/ only to act on the defensive, but to cross
I