The Washington herald., 1917-06-16
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Country's Best Newspapers.

Following almost Immediately upon
the closing Of the subscription books
for the liberty loan of 5000. 600, in
tense campaigning will begin on Mon
day to secure 800 900 900 for the Red
Cross work which is to be supervised
by Henry P. Dawson. Those who OBJ
tain liberty loan bonds will have the
satisfaction of knowing that in them
is placed their money upon which in
terest at the rate of 81 per cent is
to be paid for the present. Later the
rate of interest may be increased.
But those who subscribe 70 the Red
Cross fund of 800, 900, 900 will receive
their returns indirectly. For the Red
Cross work will. as it has been mapped
out upon a stupendous scale, mater
tally aid the allies, not merely in their
military activities but also in the res
toration of ruined industries and i'm
poverished towns. Mr.. Davidson real
lied that 1t is to be a vital factor in
the continued prosperity OF the United
States after the war, If devastated in
dustries, worn-oIt railroads and home
less villages are SO restored that there
can be a speedy resumption of agri-
cultural and industrial life. Upon that
resumption will depend in part the
maintenance of orders placed in the
United States for supplies of all kinds.
For 1t is recognized that for some
years after the war the United States
must contribute much the greater part
of the necessary commodities for the
upbuilding of the devastated countries.
A Wonderful Work.
Yesterday. Chauncey NJ. Depew. in
speaking OF some Of the amazing mod
ern developments occasioned by the
war and its emergencies, said that
not the least remarkable was the dem
onstration OF the perfection to which
men of finance have carried the utili-
ZaIt0fl nf credit that
cash or even better in carrying out
business transactions, many of which
are of unsurpassed magnitude. But,
Mr. Depew says, there is another fea-
cause it is without any precedent. The
United States Is to sell hundreds of
millions, in fact billions, Of commod-
tiles to foreign nations, and is at the
same time to furnish these nations
with the money with which to pay
people and the banks that lent the
money, in turn will receive the money,
which is paying for commodities
bought by the allies.
This means a highly perfected sys-
tenn of coordination and combination.
This is a system which some of those
people who have canvassed for the
sale of liberty bonds say that the peo-
pie, especially in the rural districts
do not fully understand. There has
prevailed an impression in some parts
of the country that the billions which
to be sent in the form of cash or
| its equivalent across the seas, and
there has been much difficulty in
bringing to some of the people good
unIdSierstanding OF the tact that these
billions will remain here and be util-
lied in the purchase Of commodities.
| and especially those which the farmers
| produce.
Mr.. Davidson and those who are as
| sociated with him are masters of the
! science of coordination and combina-
/ ton so that single but very strong
| were revealed conspicuously at the
| time France and England approac ched
| the United States seeking a loan of
$500, 100000, without any other security
| than the credit and resources of these
J two nations. Precisely the same prin-
ciple as the one adopted BY the great
| corporations in perfecting their or
ganizations was the one adopted by
the little company of bankers who
| undertook to bring into perfect CO.
ordination and combination the banks
Of the United States so that they
| would share in the floating Of this
! loan to Great Britain and France. AT
| the beginning of the war the principle
| was adopted twice. Once was when
the banks Of New York City were SO
| COInpleIely InODlllZeQ as to make a
single unit whereby 800, 900 of gold
was secured with which the credit of
| New York City was saved. In like
| manner a few weeks later another
500, 100000 was secured, the banks of
the entire country coming together
| so that they acted as unit in sup
plying dO0000.000 of gold, whereby
American merchants who owed mon
ey in Europe, and especially in Eng
| land, could secure the necessary eS-
change with which to pay their bills.
The Red Cross and Combination.
Experience in perfecung combina-
tions and in systematic Sco-ordinations
| whereby powerful individual Influences
| are brought into common action so
| that they become in effect a single
unit, has made dt possible for Mr.
Dawson and his associates SO to per-
| feet the Red Cross plan for Securing
500, ,000, 900 within a few days, as to
! make 1t substantially certain that this
| amount will be obtained. Some have
| feared that so great a subscrinfion as
500, 900, 900 for a single purpose Of 3.
| philanthropic character, might tand
| to impair benefits which Other nhu-
anthrophies and charities have In the
past been receiving for Their rro,Ir
| But theF Is believed to be No vroS,,d
for apprehension of this kind.
Every penny received in ala of THE
Red Cross plan will be in dus tirae
accounted for. There is NO danger
| that any of 1t will be diverted ~ tbe :
undue profits may be gained hy ,hnas
Uha ali naTaS7aodgfias ~, NhOoS