The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-12-21
NEXT US. LOAN
MARCH 10 FOR
$S,000,000,000
10 Be Greatest Financial
Drive in History Of
the World.
41.2 PER CENT. RATE
McAdoO Hopes for 2O,0OO,-
OOO SubScriberS-NOt to Be
Called Liberty Loan"
MACHINERY" IS READY
Plans Worked Out at Confer
ence With Reserve Bank
Heads.
MACHINERY" IS READY
Special DAsposcA to Tn. Sos.

Special DHspsscA to Tas Sux.
WAsHrNGroN, Dec 20.-The next loan
~ people Of tho United States will be
ssked to purchase to aid the Government
sn winning this war will be for ss.o6o.-
100000; the bonds will be = ~ per
esnt Issue and the Offering will be made
sn March is. 1918.
II Il understood the campaign will ex-
BEND over ten or twelve weeks to give
mo nation time to absorb the tremen-
hous Offering
These are the. tentative arrangements
which have been agreed upon, and al
ready the thousands Of agencies to as
eist in the tremendous task are being
Tined up In readiness for the formal an
nounecment to launch the most tremen-
dous financial campaign ever attempted
in any country.
Governors OF the twelve Federal Re-
serve banks OF the United States left
their home stations a week ago and
quietly dropped into Washington. In
formal meetings with Secretary McAdoo
were held daily for almost a week.
Prominent hnanciers were called into
consultation. The mon who handled the
last loan were asked specific questions.
Before them the Secretary Of the Treas
Jury and the Federal Reserve Bank Board
and the governors had formal reports on
the hrst two loans. suggestions as to
subsequent loans. reports on the condi-
tions Of the country and the financial
conditions OF the people. This mass Of
documentary evidence was tackled. The
problems were taken up one by one.
carefully weighed and discussed and
then tentatively agreed upon. II may be
taken as authoritative that the nsxt loan
will b Of $4,000. .000. 900. that its interest
rate will be ~ per can't and that II Will
be offered March Is. Formal announce
mont Of the plans will probably not b
mads before The turn a ths year. ~
Details Agrees Upos.
The opinion Of the conferees as TO
these main details Of the next Offering to
finance the loan IL reported to have been
almost unanimous. In some Of the minor
details there were differences Of opinion.
but before the conferences ended all Of
these had been smoothed out and the
Federal Reserve officials, the Treasury
oficials and the prominent fnanciers Of
fhe country Yho have been queried for
their opinions will be found soiidly be-
hind the next loan.
There were many important problems
10 be solved In deciding. on the loan
and it's terms. Principally they were
its size and the rate OF interest II will
bear In connection with its size the
problem which confronted the Govern
ment officials was whether one large
Or several small loans would be better.
Jt finally became the unanimous decision
that It would be much more advAn-
ngeous to float one large loan. There
10 no legal authority at present for at
tempting such Sigantic financing. II
devolves upon Secretary McAdoo to 90
before Congress and obtain authority
for the new credit The change in the
interest rate from I per cent. in the last
loan to ~ In the approaching one must
also be authorized by Congress.
Another tremendously important prob
lem which was solved. according to 70.
port, was the rate of interest which the
bonds will bear. II may be taken for
granted that the rate will be ~ per
eent-no higher and no lower. In this
detail the members Of the Federal Re-
serve Board and the governors OF the
reserve banks are reported to have won
over the Secretary Of the Treasury. who
has always been An exponent Of low in
tersst rates.
II will be remembered that In the
second loan he held out . long time for
= repetition Of the 3la per cent rate.
His contention was that another loan
could be doated at 4 per cent. In this
the most prominent bankers ana stu
dents Of finance differed with him. He
tontended that the placing Of q loan at
o. per cent. would bring another re-
adjustment such a. has recently been
witnessed In securities. These read
sustments. Of course. would affect the
securities held by banks. savings banks
Insurance companies and thousands OF
other corporations. thus more or less
disturbing the economic fabric Of the
country.
The Secretary is now reported to be
favorable to the ~ per cent. rate
since he has been convinced that
s'oooooo.oo0 worth Of Is cannot be sold
IN this country without subsequent dis.
turoances. which. many bankers argue
VII be considerably less II the rate Il
Increased.
Seek Name for New Loau.
What shall the new loan be called ?
vas another question. and one Of the
rev discussed which was not tentatively
settled 1t was held by several Of thu
governors that II would be unwise 4
eall II the third Liberty Loan. The
Victory Loan was suggsstad ~ q good
name. one used successfully In Canada
N the campaign which has just closed
Several other names have bssn sug
!estsd. but the fnsi deciMon n prob
!.matical. II 10 probable. however. tina
the new loan Will not be called Lab
srty loan.
In view Of the tremendous siss ant
Importance OF the joan, the most IN
sensive campaign In the history Of guv
ernmental financing will b otaeod Al
back In the harness - seoa aflae ~
hrst Of the year e psaOtidAble. Ever
possible Agency viii - utjtae1. u I
me plan 10 bring the new jeas - ~
eirsct attention Of evesY mea, vegnAI
ana chiii In the units1l otatass eAA. 4
impress wildly upen ~ MIND ~