The Birmingham age-herald., 1917-07-12

New York, July 12.-(Special) the financial district it Is the expectation that the Secretary of the Treasury, MT. McAdoo, will offer another loan to the American people at sometime within the next four months It may be for as much as 5000 OOo, 900. In fact, the impress sion or conjecture in the financial dis trict Is that the Secretary may deem it expedient to offer the entire amount of the balance of $500, 100000 which was au- thorized by Congress, $2,0Oo, ,O0o0O0 of which have already been marketed.
 There are some interesting conjectures regarding the details of the new loan. Will the Secretary fix the rate at 31s per cent? In view of the fact that the lib- erty loan was oversubscribed by more than $1,O0o, ,OOO,000, the surmise is ven tured that the Secretary will deem the rate of interest on the new loan of Sia per cent sufficient to tempt the investors to accept the offering even though it be for S3,0U0, ,000,000.
 Another conjecture relates to the time when the offering will be made. That in- wolves several considerations. One of these is based upon the fact that the Secretary is rapidly disbursing the pro- N6edS OL LAe llDGIly lOdu III doNdlitSS " the allies, doing so 1t rate which IS continued Is likely to exhaust that loan by mid autumn, certainly by late au- tumn. It is presumed that the Secretary will deem it the better part not to wait until the liberty loan is exhausted before offering the new loan.
 PAYMENT FOR CROPS
 There are intimations that officers of the federal reserve banks situated in dis tricts which are agricultural have in an informal way suggested that the new loan be offered, or soon after the farmers begin to receive payment Tor their crops. No small part of these payments will be made by the allies who will utilize the advances made to them by our govern ment out of the liberty loan. Therefore it is reasonable to suspect that consid- erable part of the money which Secretary McAdoo received on account of the lib- erty loan will be utilized in paying for bonds of the new loan.
 So again If third loan is authoriz ed by act of Congress, presumably consid- erable part of it will represent payments which were made on account of purchases by the allies of American commodities, the funds for these purchases having been secured by advances made by our government to the allies.
 THE LOAN AND BANKS
 The Comptroller of the Currency, John Skelton Williams, called for a report of the condition of the national banks as these were about the tune of the closing of the liberty loan. These reports have been eagerly studied and the lesson they contain is reported by those in authority in the federal reserve districts as grati- flying and wholesome. For, notwlth- standing the stupendous figures which the liberty loan represent, the national banks throughout the entire country are discovered to be in a very sound condi- tion and in some of the districts unusual ly strong. It is true that in some of the districts deposits have fallen off some what as compared with those reported at the time of the previous call, but this falling away was no more than was to be expected al this time of the year.
 Not until after the war ends and there is time carefully to study the relation of the national banks and of the federal reserve banks to the floating of the lib- erty loan will the people realize how stu pendous was the burden which was occa- stoned by the liberty loan that was borne by the banks. The detail work was not only exacting, but enormous There were numberless entries and a vast amount of bookkeeping. The banks greatly facilitated the treasury depart ment by taking care of the detail work made necessary by recording subscrip- tions and handling payments made by in dviduals on account of subscriptions. This was all service of the best kind. It was not only voluntary service, but it en- tailed an expense which in the aggre- gate amounted to many thousands of dollars, all of which was cheerfully borne by the national banks.
 SYSTEM OF RESERVES
 Another important detail. The banks throughout the country found that in ad-