New-York tribune., 1917-05-23
Big Sales in New York,
Philadelphia and Bos-
ton Expected
Federal Reserve
To Aid Flotation
Board Will Help Non-Mcm-
Der Banks, Says
Warburg

Washington, May 22.-What every
section Of the country is expected to
do in unloosing its pursestrings for
the Liberty Loan was officially an
nounced tonight by the Treasury De-
partment. The figures made public
arc the minimum. The maximum, IT rs
hoped, will be such an over-subscrip-
tion as has never before been recorded
in the history of any nation.
In framing the schedule of minimum
performances expected by the East,
West. South and Pacific slope, Treasury
experts have built n structure OF
figures with the entire banking re-
sources of the country as its founda-
ton. They have based their calcula-
tions not upon the patriotism of any
particular section, but upon the mum
ber of dollars to be found in the
banks of that section. The programme
thus tentatively created, it is realized,
probably will be reshsped entirely by
the response of the people of the
absence of any other precedent, it will
serve the purpose of showing each dis
trict just what the nation expects of II.
Reserve Banks to Assist
Coinrident with the announcement of
the tentative allotments which in re-
aity are not allotments, but estimates
of what each section should take-the
Federal Reserve Board announced to-
night that il had availed itself of the
extraordinary powers vested in 1t by
Congress, and virtually had placed at
disposal of every bank in the United
States. member and non-member, the
powerful machinery of the Reserve sys-
TEN TO assist in making the loan an
overwhelming success.
In making public its tentative allot-
ments of bonds, the Treasury Depart
ment has adopted two bases of estimat-
ing-a $4,000 ,000, 900 issue and one of
S2,50O 100000, the latter designed to
meet the possibility of any one section
failing to take the amount estimated.
The tentative allotments, maximum and
minimum, by Reserve districts. follows:
Boston. S240.000,000 TO S300,000000;
New York. S6OO,000.0 900 to S750,000000
Philadelphia. S14O,000,000 to Sl75,000,-
600; Cleveland, slS0,O00,000 to S225,-
900 900: Richmond, Ss0,000,000 10
500 600 900; Atlanta. S6O,OOO,OOO to
$4,000. 600: Chicago, $3.50, 100000 TO
1925 .OOO. 900; ST. Louis, $4,000, 900 to
800 .OOO. 900; Minneapolis. SS0,000,00
to 500, 900, 900; Kansas City, 100000.
COO TO S125, 900; Dallas. $4,000 900
10 s50,000,000, and San Francisco,
S140000,0 900 TO s175,000000.
Big Allotment to East
ANALYSIS of the tabulation shows
that the three reserve districts with
HEADQUARTERS at Boston. New York and
Philadelphia are expected to take AZ
per cent of the loan.
Minimum tentative allotments by
states, estimated on the same basis,
show the following as each states ap-
proximately proportionate share:
Maine, s16,50O,000; New Hampshire,
SIC, 500. 900; Vermont, $4,000, 900; Mas
sachusetts, $144,000,O00; Rhode Island,
$4,000, 900; Connecticut, $4,000, 900;
New York. 555,000,O00; New Jersey,
$50 ,O00,O 900; Pennsylvania. 5000 700, 900;
Delaware. $4,000,000; Maryland, $685.
100000; District of Columbia, $S,50O,-
600; Virginia, s1S,50O,OOO; West Vir-
ginia. $13,500,000; North Carolina, $l0,-
500 900; South Carolina, sS,5O0,0O0;
Georgia. s16,500 900; Florida, $4,000
OO0; Alabama, $4,000 900; Mississippi,
$4,000 900; Louisiana, sl3,500,000.
Texas, $36,000,000; Arkansas, $1,000
00O; Kentucky. $16,000,000; Tennessee,
$4,000, 900; Ohio, s93,000,000; Indiana,
$4,000. 600; Illinois, 1886, 1000, 900; Mich
igan. $50, 900, 900; Wisconsin, s32, ,000,-
600; Minnesota, $43,000,000; Iowa, $45,-
500 900; Missouri, s60,O00,0 900; North
Dakota, 100000 900; South Dakota, 49,
500 900; Nebraska. s22, 900; Kansas,
s2O,OOO.00O Montana. O0,O0O: Wyo-
ming, $500, 900; Colorado, $4,000, 900;
New Mexico, s2,5O0,0OO; Oklahoma,
s14,500,000; Washington. Sl7,500,O00;
Oregon, $4,000 900; California, $92,-
coo. 900; Idaho S4,OO0,0OO; Utah, s6,-
100000; Nevada, sl,5OO,OOO; Arizona,
$4,000, 900.
These figures represent only the
minimum expected from each state.
which is expected TO top the minimum
by as many hundred per cent as pos
sible.
Warburg's Letter to Banks
The action of the Federal Reserve
Board in aiding member and non-mep-
Der banks in the flotation of the loan
was announced in letter written by
Paul NJ. Warburg, vice-governor, to all
Reserve banks.
"The board has been advised" Mr..
Warburg wrote, that many corpora
tions, including savings banks, have
agreed to subscribe substantial amounts
of the Liberty Loan, carrying the
bonds for their employees subject 10
payment in small instalments. 1t has
been suggested that it would be help
full TO the banks in placing the Liberty
Loan, and particularly in assisting cor.
porations which make subscriptions OF
this character, if Federal Reserve
banks were authorized to establish a
special Liberty Loan rate of 3la per
cent for notes, drafts and bills of ex
change drawn by customers of the
banks, including savings banks, having
a maturity not in excess of ninety days
and secured by Liberty Loan bonds or
United States Treasury certificates OF
indebtedness.
"The board has given this matter its
careful consideration and has deter
mined that it will grant such rate TO
any Federal Reserve banks requesting
il. good until countermanded or modl-
fed.
"Consideraton also has been given TO
the needs of non-member banks under
present conditions. While the law pro-
vides that member banks may not. cx-
cept with the special permission OF the
board. act as agents in rcdiscountlng for
uon-mcmber banks, the board feels that
in view Of the magnitude OF the task
imposed upon all banks of the country
member banks should be permitted TO
rediscount for non-mcmber banks, in
cluding the savings banks, whenever
the proceeds have been or will be used
in meeting demands caused by subscrip-
tions to the Liberty Loan.