The Washington herald., 1917-06-18
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the ccuntry's Best Newspapers.

the Country's Best Newspapers. !
Forty millions at least and perhaps
tse'QVo,Ooo viii be the gift Of the people
New York City Is the center, to the
Red Cross fund of $1O0,O0o,O00 II the
expectation OF the committee IL met.
The committee, which is now In a
very systematic and highly organized
this subscription. Is persuaded that @
not far from one-half of the entire
amount Of 800, 900, 900 will be obtained
in the metropolitan district.
The men Of large affairs are handling
big money matters in q very Zig way
at this time. For, while the Red
STSsS eSmmttee Is at work seliS5ting .ed ede 6S
OF the entire fund Of 800, 900, the
finance authorities of the city, and
presumably the men Of finance, are
contemplating an offer Of a city loan
which certainly will be as much as
10000 600 and may amount to S75, ,0Oo, 200.
Not the amount OF the bond offering,
but the rate Of interest which the
bonds are to bear, is the question
which has occasioned the chief con-
sideration of the subject. Ought the
Whatever the interest offering may be,
there appears to be no doubt that the
entire, bond issue will be easily abb
sorbed.
Therefore, with a gift of approx
mately $s0,000,O00 to the Red Cross
fund, and the purchase Of from $5O,-
10000 to f5.oOo,OOo of New York City
bonds. supplemenung within a few
days the hundreds OF millions which
New York has subscribed to the lib
erty loan, there is to be considered
quick financing involving probably.
lly as much as $l.O00. .6Oo. .OOO, which must
be done by New York City.
The New York City bonds will
probably be absorbed by a syndicate
Of bankers. II France were not now
at war, every likely her representa-
past, secured a large amount of this
new issue of city bonds, for these
have been q fayorite security for
French investors,
The Next Loan.
Now that the liberty bond offering
is out of the way, there is heard in
the financial district considerable COM
ment. although somewhat vague, re-
garding the next loan which the Sec
retary Of the Treasury may offer late
in the fall or early in the winter. In
fact, it frequently happens that when
the men of capital or the bankers
were discussing the progress of the
liberty loan they also referred to the
! probability that within a few months.
perharS early in 1915. the Secretary
of the Treasury may make another Of
fering, which Is likely to be as large
as the liberty loan.
What effect will the absorption of
the liberty loan have upon subscrip-
tions to the new loan? This question
is frequently asked. On the whole,
the view is taken that a new loan,
even though it be for as much as
s., ,OOO, 90. O00, will be more easily alb
sorbed than the liberty loan was. One
OF the reasons given for this view is
that the people, from their experience
in investing in the liberty loan, will
be able to say TO their neighbors and
friends who did not invest that the
transaction has been highly satisfac-
tory, even as purely business trans
action, for the money which is in the
bonds is still there and is paying l-2
PER cent interest. An experience of
that kind changed the character Of
subscriptions offered by Great Britain
to her people from what were at first
purely banking absorptions of a loan
to stupendous popular subscription,
in which almost all the people shared,
for in England the people learned by
experience not only that money was
necessary, II England Her to triumph,
but also that the investment was
good one.
Then, again. a reason which is given
for the belief that the next popular
loan will be more easily absorbed than
the liberty loan is based upon the
experience which the Secretary of the
Treasury and all others who under
took to float this liberty loan have
met with. They have been taught val
liable lessons by experience, as an
fact was the case in the days of the
civil war. when the government at
Washington was compelled to issue
at frequent intervals large offerings
of bonds. The latest offerings which
amount than the earlier offerings,
were quickly absorbed, because eN-
perienCe had shown how best to plac ce
these offerings before the people.
Another Good Reason.
One Of those who with others was
associated in a subscription aEgre-
eating $4,000 900 to the liberty loan,
based his belief that the second loan
would be more rapidly absorbed than
the first upon the fact that the eX-
IeTlence Of the people will speedily
teach them that the money they sub
scribd was returned TO them in pay
ment of munitions. food and supplies
OF all kinds. 1t il the belief that there
will be speedy distribution of the
funds obtained by floating the liberty
loan, which ConvinCcs those who are
subscription of 100000 and the
financial influences which will absorb
New York City's Offering Of not less
than $4,000 900 OF bonds. that there
will be no scarcity of money, but in
stead of that funds will be plentiful
from the first of July on.
When the announcement was made
that the United States Steel Corpora
ton had subscribed $25.0D,NO to the
liberty loan. one of the ahlest men in
the financial district, who with his
associates, is a very large subscriber
TO the loan. said that this subscrip-
ton of S25, ,O0O, 600 was not the limit,
for the rea sons were excellent for be-
lievinE that the steel corporation
would later subscribe as much again,
although placing the second sub
scription in a little different manner
from that adopted when the first sub
scription went through the house OF
]. P. Morgan & Co. TO the First Ma
tional Bank. The second subscrip-
ton of $25, 900. 900 which was made last
week. is to he paid through some or
the subsidiaries of the steel corpora
tion. But the total is 100000, how
ever the payment be made.
The presumption is that everybody
who holds steel common stock as an