The Washington herald., 1917-07-04


for a week or ten days after the Sec
retaTy made his offer. These men of
finance and financial institutions were
informed by the Secretary that an
offer OF a 5000. 900. 600 loan was to be
made. and were requested to let INN
know how much of that loan each
bank would feel justified in taking.
But the trouble was that no banker
was prepared to make any estimate
until he knew what the details of the
loan were. This comment is made not
in criticism of Secretary McAdoo, but
with the hope that the earlier expert
ence may not be that met with when
the second loan is offered. The Sec
retary had a colossal undertaking in
which to invite the American reoplc
to participate. and from several points
of view 1t was a new proposition. The
wonder is that he foresaw and pro-
vided for so many of the contingent
cies. although he may have overlooked
some others.
The remark has been commonly
made in this city. and II has been
echoed by Information that has come
from other Federal reserve districts,
especially those OF the far West.
| that if the first week after the offer
of the liberty loan had not caused
confusion, doubt and impatient wait
ing for official information respecting
details. the drive would not have
been SO intense and the strain SO
great. One of the leading Federal
reserve authorities said this morning
that II this first week. when every
one was waiting. could have been
added In the end of the campaign.
: h1h
more than 100000 a day.
Therefore. it is hoped that when the
second offer is made it will be ac-
companied by such detailed informa-
tion as will enable every national
bank, and the mana gers of every Fed
eral reserve district, to understand
clearly and instantly what is expected
of them.
The Treasury Department. so this
high authority said, was, when the
first loan was offered, in some con-
fusion. Its kilograms and correspon-
dence were occasionally at cross pur-
poses. and frequently gave the bank
ers no practical assistance. There
fore. the hope generally prevails that
before the next loan is called, the
Federal reserve bank officers can
gain clear understanding with the
Treasury Department how the work
Is to be conducted and what SPECIFIC
assistance in material, printed matter
and other advantages can be ex-
pected from that department. For It
Is essential that before the next cam
paign opens the Treasury Depart
ments part In the actual raising of
the money be clearly defined. and that
all the assistance it can give be pre-
pared, as for instance, If the depart-
ment is to send to the Federal reserve
districts printed matter. posters ana
other material Of that sort, II should
be completed and shipped to the
various districts so that it can be on
the ground in time for distribution
betore the opening of the campaign.
There Is another thought that has
occurred to some of the Federal re-
serve bank managers which is based
upon belief that improvement could
be made in the basis of apportionment
as compared with the basis for the
first loan. That first basis was placed
all over the United States upon the
foundation of banking resources. For
that reason New York and the East
ern reserve district bore the heaviest
end OF 1t. In the far West, on the
basis of population, the Secretary ex-
pected that the amount raised would
be equivalent to about SIS per capits.
Had the loan been spread over the
United States on the population basis
the per capita allotment would have
been about-S0. The belief is general
tnat In the iIrming districts. espe-
cialiy, there will be larger subscrip-
tions to the new loan, relatively and
ahSnlIfnlv
first loan, provided that not only the
banking resources. but also the ner
capita wealth of each State and dis
trict be carefully considered and that
both standards be employed when en-
deavoring to secure equitable appor-
tionment figures.
Secretary Me- doo's acknewledse-
ment of the valuable service given
by the newspapers of the United
states in support of the liberty loan
was no more than just. but il should
be said that many of the newspapers
contributed not only abundant and
daily amounts of editorial advertise
ment free of cost, but also actual
business free of charge. In the North
west, FOR instance, the committees
having the campaign under way
called upon the newspapers for as
slstance. These appeals were made to
461 weekly newspapers and 216 daily
newspapers, as well as various farm
publications. These newspapers pre-
sented receioted bills for advertising
space at regular rates, the aggregate
of which amounted to $4,000, and tbjs
was IN only one district. Probably the
newspapers of the United States con-
triouted In this way more than 81,
600 north Of service.