Evening star., 1917-05-20
BY I. A. FLEMING.

The tide seems to have turned IL
financial circles; turned from pessimism
of a dark hue to a more hopeful feeling
from the no profits for industrial cor
feeling that the war loans woult
drain the country to the belief that the
enormous sums of money that are te
be expended in this country in pushing
the war, directly and as advances te
the allies will restrict credits, to an un.
standing Of the facilitier for re-
discounting Of bills by the federal re-
serve and to feeling that the money
expended in the United States will find
its way back to the banks. to the pre-
vention of any disturbance.
The result is that there has been q
distinct and positive right-about turn
in the New York stock market with
large net gains in all the high grade
industrials, other than motor shares
that rail stocks are less depressed ano
that pessimistic talk is greatly re.
duced.
OF course much depends on Russia.
It is the most important immediate Is
sue, with the promise that adjustments
in line with the aims of the allies may
be accomplished facts.
Large capital Is watching the course
of taxation plans in the House, anc
hoping that the Senate will put a quie'
tus to retroactive measures and wipe
out all ambiguity in language.
The Liberty Loan.
The liberty loan must be a success
The selling forces back Of it cannot
One OF the greatest aids is the &C.
ouisition of baby bonds for the inves:
tor of small means, salable on the In.
stallment plan through practically al
the banks. with the bonds themselves
ample security for rediscount with the
federal reserve banks, without strain
ing the credit resources of the nation.
Frank A. Vanderlip made this state
ment, and it covers the point with
great strength:
right, while pretending to render pub
lie service himself, to throw the burden
on the bank. He should make sub.
scription with bona fide intention OF
paying for 1t within reasonable time
and should at once make payment or
account"
The funds of the small investor must
make a large hole in the $4,000, 0.O0(
called for and must not be made bur.
den on the banks by outright buying o1
very large amounts by the banks them.
selves.
c. J. Bell on War Financing.
'I believe that the two-billion-dollar
liberty bond loan will be successfully
fioated," said Charles J. Bell, president
of the American Security and Trust
Company, yesterday afternoon.
"FurtEermore," he added. "the forces
at work to make this fiotation a sue
cess are the strongest that have ever
participated in any financial movement
in the United States or elsewhere.
EVERY bank Is opening its discount
facilities to aid subscriptions by men
and women of small means through
the medium of installment payments
great corporations are stimulating
patriotism and thrift In the same man.
ner; bond houses are calling their
statesmen from regular business and
the furtherance of the -loan-it cannot
be otherwise than a success.
TT is probable" continued Mr.. Bell
"that it may be necessary in future
war financing to increase the rate OF
interest to 4 per cent; indeed, the
Treasury ohicialss and the trainers OF
the loan bill have provided for this
very contingency. as q possibility. by
the act making the present bonds, In
the event Of hotations of bonds at q
higher rate during the war, bear the
highest rate paid.
at is my personal belief that 4
per cent government bond issue would
turn loose food of money that would
furnish whatever sum the needs Of the
government might require. Naturally
much of this money would come out
of the savings banks and the savings
departments OF trust companies and
national banks as well, but by the
time this issue is announced q great
the loan now being marketed. would
have been returned to the banks, and
It. would not be long before the thrift
OF the. NAn6lAs. inspired byHthe uationss