Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1917-06-08
FLOATING Of BIC
LOAN WILL not
UPSET BUSINESS

WASHINGTON, D. c., June s.
Floating a seven billion dollar indebt-
edness within few weeks sounds COL
ossal.
To the minds of those familiar with
the history of large governmental fl
nancial transactions, it suggests dire
possibilities. Heavy borrowing by ma
tions has often resulted iii price iHfais-
tions and greatly added cost of living.
Such result might be predicted fer
the Liberty Loan were it not for the
fact that precautions against these i'll
effects have been taken.
Uncle Sam now practically is in the
osition of the boy who can eat his
candy and keep it. While borrowing
to an extent greater than any nation
has ever borrowed at one time, he is.
at the same time providing greatly in
creased stimulus to business within his
own realm.
1t is not as if this seven billion dol.
lars were to be borrowed and taken
cut of the country for investment else.
where This is to be merely trans
fer of credit, one of the conditions o.
the credit extended to foreign nations
being that the money borrowed from
this government must be spent for sup
plies within this country So when
the United States lends two hundred
million dollars to Great Britain this
government merely assemblies the
credit of its people and lends that
credit to Great Britain to enable Great
Britain to enlarge its operations OF
buying our supplies. So while we are
aiding Great Britain by giving her a
lower interest rate than she otherwise
could get, we are aiding ourselves BY
providing new demands upon all 2f
our industries, new demands for labor,
larger requirements of raw materials
and greater market for food sup
yuies
The administration has profited frofl
the costly experience of other nations
by outlining a policy which provides
Ior Il combination of borrowing and
taxation in order to keep down the
had effects usually resultant from
large borrowing. The most pronounc-
ed lll-ef.ects that have come from
large borrowing have come where ma
lions have raised all of their war rev.
enue by the sale of bonds. Wherever
n natien has undertaken to raise its
taxation broDortionately with its rate
or borrowing, this tendency toward
urice imitation has been reduced. The
secretary Of the treasury, instead OF
calling for subscriptions to the entire
loan at one time, called for only two
billion dollars at once. His object was,
raanifestiy, to distribute the shock OK
the loan Such program makes Ii
impossible for this money 10 be sub
scribed: to be loaned to European
countries; to be expended for supplies
in this country, and to be again distrib-
pted to its normal channels of busi-
ness before the next installment IS
called for Such a plan makes it pos
sible to handle the Liberty Loan by
degrees with the least percentage OF
In siness displacement,
Another provision in the making or
The Liberty Loan which helped to re-
drce its i'll effects to the minimum was
that giving the secretary of the treas
,rv authority to deposit the money
Subscribed for bonds in banks through
crt the country. 1t is his policy to
distribute these deposits where the
money originates. Thus again is pro
vided an excellent safeguard against
business displacement.
The floating of this great loan will
afford opportunity for getting new
angle on the savings habit of Ameri-
cans Heretofore Americans have not
heeu satisfied with the low returns
nroyided for government securities.
Tbev have not been buyers of govern
vent bonds. 1t is said that less than
,pe-ifth of one per cent. of the people
of the United States are bond owners,
ard of course, only small portion o.
bose are holders of government bonds.
!, Great Britain and France nearly
nor cent. of the people have actually
participated in the raising of war rev
enue by the purchase of bonds. On
the basis of patriotic duty a great
,,anv Americans will now become
hcndholders, and the practice OF buv-
ing the class of securities will be stim
llated.
In order to make this great loan a