The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1917-09-11

Benjamin Strong. jr., governor of
the Federal Reserve Bank of the
New York district, briefly summar-
lied the discussion which recently
took place at the Federal Reserve
Bank to the end that there may be
begun as speedily as possible highly
perfected organization by means of
which the next liberty loan can as
speedily as possible be sold to the
American people. One brief sentence
in Gov. StTong's statement has been
much commented upon by those who
expect 20 take part in floating this
Loan He said that the exact date
of the beginning OF this nationwide
campaign of soliciting in behalf of
this loan is not known. Besides,
the bankers are not familiar with
the aggregate amount of the bonds
which are to be offered to the pub
lie and Furthermore there are vari-
Gus other details Of which the bank
ers are ignorant. Probably the rate
of interest is one of these details.
Nevertheless they look upon a state
ment made a few days ago by Sec
rotary McAdoo as indicating that
this campaign must begin within a
few weeks and that whatever the
amount to be raised may be the ut
most energy and persistency of
those who are to aid the Secretary
in floating the loan will be requir-
ed in order to make il an immedi-
ate success.
This statement reflects some of
the embaTrassments the bankers
here and elsewhere were compelled
fann al he
loan was offered. FL ON the North
west there came strong expressions
Of regret that at least a week or ten
days rassed after the Offering was
made before the organizations in
that section of the country had snv
idea of what they were expected TO
d" and how they were to secure the
Heating in that great section of the
allotment of bonds decided upon by
Secretary McAdoo for that section.
one OF the best authorities in the
Northwest informed friends in New
York that If the organizations there
mad been able to begin promptly and
understandingly as soon as Secre-
tary McAdoo announced the Offering
the district probably would have
been able to raise several millions
more and in fact very likely would
not have fallen behind the allot-
ment fixed for it,
Inc bankers of New York City who
met few days ago in the office of
the Federal Reserve Bank to discuss
plans for organizing a campaign for
the sale OF the second liberty bond
represented as a whole the financial
strength of the banks of New York
City. Presumably they exchanged
views respecting the proportionate
part which the banks of New York
City will have to assume in order to
secure the success of the loan. That
question has been much discussed in
private and informal conversation.
Upon one point there is general agree
ment and that is that New York
banks may be compelled to accent a
larger share of the loan than they did
| az the time of the floating of the first
liberty loan.
several reasons are given for this
view. One of them refers to the doubt
mat prevails with regard to the sub-
scriptions which the great CORPORA
lions will make. No one believes that
The United States Steel Corporation
VIII be in position to subscribe S25
100000 to the second liberty loan. The
recent financing which the Bethlehem
steel Company has perfected in order
to secure fresh capital makes II
doubtful whether there can come a
very large response to the appeal from
that corporation. Other corporations
are now somewhat puzzled, not know
ing exactly where they stand. The
imposition of excess-profit taxes the
determination of prices, and other
factors must be considered by them
before they will be able to say wheth-
or they can contribute anything or, if
they do make subscriptions, how
much the amount will be.
Then, too, there is doubt about the
ability to secure a large subscription
list from clerks and other employees
OF the great mercantile houses, On
the other hand bankers are persuaded
that some Of the very rich men will
make as large subscription to this
loan as they did to the first liberty
loan and perhaps larger. The surmise
Is general that John d. Rockefeller
will buy as many second liberty loan
bonds as he bought of the first issue
and perhaps more. Probably the inn
munity from taxation which is to be