The Washington herald., 1917-10-03
SALE OF Loan
i. 5. Marvel
Holland Says War Flnanc,
ing Brings Strength to
Country.

American people. one OF those VINO VIII
give much Of his time In an attempt
to persuade the people to buy these
bonds. said this morning; PROM ohe
point of view, the two greatest
events in the financial history OF the
world are those which. by the end OF
this year. will make a record Tor tne
United States. which has been estao-
Hshed In six months. For the Ameri-
can people will undoubtedly be FOUND
70 have subscribed for possibly as
much a. 5000 coo 900 worth Of bonds
and will have done this within SIX
months. There is no record that /
now call to mind in the financial
achievements Of the nations of the
world which can compare with this.
This high authority went on to say
that Il should be borne in mind that
this entire subscription Is made. or Is
to be made, exclusively by the peo-
pie Of the United States. Even II II
were expedient to do so, and II 1t
were possible. nevertheless 1t is not
now practicable for the United States
to market even such a high-class Sc
curity as a government bond any
where else than in the United States.
Other nations are coming TO the Unit
ed States for assistance. and instead
of borrowing from other nations we
are lending billions.
Absorb European Securities.
This amazing capacity of the Amer
lean people is revealed, It was said,
at a time when we have already
absorbed substantially all of the Amer
lean securities which were formerly
held by investors of Great Britain
and Europe. Attention was called this
morning to a statement made at At-
iantfc City last week by a highly
accomplished English authority, in
which he said that England had part
ed with substantially all Of the Amer
lean securities that were held in
Great Britain at the time the war
began. II England has yielded these
securities. to whom did they go? This
IN a question which some of those
of financial authority have asked, say
ing at the same time that it car
ried its own answer For there is
no other market for these securities
than the United States. so that, in
addition to the unparalleled invest
rnent OF American money in the bond
issues offered by the government, they
have also absorbed from s.. 600. 900 900
to 5000. 10000 worth Of American Sc
curities
Therefore, in addition to the sub
stantialIy complete liquidation of our
Indebtedness represented by Ameri-
can securities held abroad we at the
same time have been buying govern
ment bonds in such enormous
amounts that on Thanksgiving Day
in November it will probably be pos
sible to announce that the govern
ment has borrowed and the people
have lent TO 1t from 5000 000 0C0 to
500, 600 of money since June.
Among the many discussions which
the offer made a few days ago by
Secretary McAdoo OF an unlimited
sale of bonds BEARING 4 per cent in
terest, or at least limited only by
the figures set fourth in the authority
given by Congress, this comment has
been frequently heard. These enor-
nous financing transactions to which
the government and the people are
parties have with almost cyclonic
sviftness changed the condition of
the United States from that of a
debtor nation to that OF a creditor
nation and for the time being the
worlds greatest creditor. The be-
lief grows stronger and stronger that
this position will be maintained af-
ter the war is ended 1t is said that
il will certainly be maintained IL our
industrial commercial and especially
our foreign commerce opportunities
are fully met
Teuton Situation Alarming.
AnothR feature associated with the
new loan as well as with the first
liberty loan Of last June is the fact
that all of the money will be kept at
home. In almost every case hereto
fore where large loans have been
made by governmental authority
much the greater part OF the funds
thus secured has gone to other cOun-
tries. Even the billions which we are
advancing to the allies and which
must be paid of after war is ended.
will for the most part be expended
in the United States.
In the directors rooms of some Of
the great corporations. there has
been recently informal or incidental
discussion based upon confidential or
at least private reports which have
come from Europe, especially Swift
zerland, which tell of the grieyOus
anxiety OF the men OF finance, the
bankers and the industrial leaders
Of Germany, over the economic situa-
ton in Germany and Austria. This
anxiety refers not only to the food
situation but, also TO the alarming
weakening Of financial strength. And it
has been reported to some of our in
dustrial leaders, that the German
bankers and men Of finance are well
informed about the marvellous finan-
cling that has been in progress in the
United States including the loan of
billions to the government and the
allies as well as by the absorption
by the American people of securities
which until the war began were held
abroad
The German bankers have full un-
derstanding of what this means, and
they realize that should the war be
continued another year or two years
the response of the American people
to the call of the government for
loans Of money amounting to billions
will be fully as prompt as was the
response in June to the first liberty
loan and Is as sure to be the response
to the recent call before the heavy
frost comes. This impresses the Ger
man financial and industrial leaders
with the fact that the United States
has entered upon the war with the
determination OF fighting to a tri-
umphant finish.
There is no doubt in the financial
district that the Second Liberty Loan
viii be speedily subscribed and that
by the Christmas holidays the Amer
lean people will have invested very
likely as much as 500, 10000 in the
worlds best security, United States
government bonds bearing per cent
interest.