New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-15
Next Liberty Loan
To Be a Success,
Says Vanderlip
Tells Members of Bond
Club Rate of New Issue
May Have To Be Raised

Frank A. Nanderlip, speaking yes
terday at luncheon Of the Bond Club
of New York, held in the Bankers
Club, expressed the utmost confidence
in the success of the next Liberty
Loan.
II might not be as greatly ovcrsub-
scribed as the first, Mr.. Vanderlip said,
but the inertia OF the nation is rap
idly succumbing TO the active war
preparations under way in virtually
every community, and those in charge
of the fotation Of the loan VIII
have the experience Of the first at
tempt TO guide them. He comph-
mented the members of the club hlgh-
" on their endeavors and prophesied
that their bread would return to them
rather well buttered."
The Liberty Loan is a military
r. easure of defence, he declared, and
the bond houses that gave up their
time and attention to it were enlisted
in the national service no less than
if they wore uniforms. As in all mill
tary enterprises, he said, confidence
in leadership was a prime essential,
and he told the bond men that nc be-
lieved that the financial policy Of the
government was being properly con-
Quoted.
Rate Must Attract Capital
"Now, the matter Of rate is very
important" he said, "and there you
are in dilemma-you must go high
enough to attract capital; you must
not 60 so high as to unduly depreciate
and wreck our existing security in
the banks. There, again, ! think ne
Secretary McAdoo) has kept for this
issue the proper level. 1t may not
be improbable that that rate will have
to be raised in view of these vast de-
mands that are being made upon the
financial resources of the country;
but, if il is raised, this new bond, as
did the last one, will contain the pro-
vision for conversion, and the rate, it
seems to ne, is correct"
Mr.. Vanderlip said that the last
loan. of $1,000 100000, was foated at
a cost of just over s2,500,0OO, of which
more than s1,000,000 was the cost of
engraving. Secretary McAdoo, he said,
estimated that contributions in actual
expenses of volunteer workers amount
ed to s2,500.000
"Now, as ! understand it," he con-
tinued, after relating that the Senate
had agreed TO vote one-fourth of |
per cent for fotation expenses, "the
Secretary Of the Treasury proposes to
pay out pocket expenses to those rec
ognized houses which engaged in float
ing the loan, and there will be an
ample amount through this one-quar-
ter of l per cent.
you are going into this next cam
paign with quite as hard n job ahead
Of you as the last, but you are going
into it with the great advantage OF
vastly better organization. of a far
clearer understanding of what there is
20 do, with the fullest enlistment
throughout the country of all the help
that can be had for this task.
at is largely 4 task of education. of
realizing what a great war we are in
what the financial necessities of the
government are, of education as 10
what a bond is in itself-and | was
impressed by nothing so forcibly in the
last campaign as the utter blank igno-
rance of men Of good ordinary inteIli-
gence in regard to bond investments.
Predicts Benefits for Workers
"And right here we are all going
to reap eventually harvest out of this
great popular education on invest
ments. You are going TO have ten
customers where you had one before.
and it is going to be great thing
for the nation. and, incidentally. a
great thing for the bond business that
this education is going on. II isn't
altogether a contribution that you're
making-lt is a contribution, but your
bread will return rather well buttered.
! think"
BENJAMIN Strong. jr.. governor of the