Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-06-24
BANKER CITES ENGLAND
EXAMPLE Of THRIFT
T. W. Lamont Shows How Great
Sums Have Been Invested In Bonds
as People Formed Habit Of Saving.

LAKE PLACID. n Y. juno 20
Thrift, the habit of saving and invest
Ing d habit formed by whole people
working with one definite end in view.
was responsible for the remarkable m
crease of subscribers for England.s Dig
war loans according to Thomas ". Id
mont of J. 7. Morgan n Co. VINO a.
dressed the New York state Bankers AS
sociation in session here. lie gave ny,
showing how Great Britain hao na.iuieu
the problem, and suggested Ahel1aii
education in similar lines. Mr.. Lamont
said in part: x
..Arnerica's financial resources are now
called upon to PROVIDE moi oHis ioi -,
expenditures of the allies in this country.
but also for funds to be expended py out
OWN government, probably at the rale %
$40 900. 600 to ST., 100000 per day. IN rals
ing. equipping and maintaining on, M mn III.
tarv forces We are well aware that the
liberty loan is only the first OF the issues
which the government must bring OUT III
order to meet our increasing wal On
penditures. And if We are 10 noa. SUI t',a
.essfully these successive issues. all the
,,,,,,,I. n,ust invest on a heavy scale. Just
as they have in Great Britain and france.
British Victory Loan.
"The neople of England subscribed 70
the victory loan last January aooul Nv
ner cent of their combined anHud! III
come In other words two ffths OF tne
aynrape earnings of every family in Great
Rritajn were devoted to that loan NO
such sum was ever before aValiaole ioI
investment under normal conoltlons III
Great Britain or in any o'hei G0u aesort
Of millions Of people, going without thlnss
thcy otherwise would nave pousnt;
Americas liberty loan, just completed
with success. has meant I.,o ,,'n.,.
If "a
great number of people who never pelore
bought a bond contributed TO the totai
result.
to their government in the same pro
no,tion of the national income tnat
England lent this year, the totai LOT
America would be not a Two pili1o
dollar. but a fourteen billIon-doiar iio
erty loan The great problem, then, IL
how to reach the great army OF Wage
earners, and with them create an army
of savers and investors. 1t becomes
matter of great public importance ina.
all the people remaining at ho,le asu
participating in the prosperity broushs
abort by public expenditures on large
scale should be brought fully to I'M
derstand the advantage OF thrl1t anu DC
induced to practice 1t. only III t'l'
way can we create an important saw
incs fund, to be employed in the puf-
chase of the governments obligations
Method OF 1eaCQ1uR.
Our problem today is the propiem
that England faced two years ago.
How shall we teach every man. woman
become an investor in the government
obligationso A committee appointed oy
the chancellor of the exchequer 10
study the question reported IN Janu
ary, 1916. that two important oDJectS
We're to be attained by the successful
solution of the problem; first, the re-
duction of general consumption when
would tend to check the rise IN prices
and, second. the raising OF certain
sum of money for the prosecution OF
the war. In order to accomplish these
results the committee pointed out the
need of certain facilities to be placed
within reach of everybody These
were first a simple method OF invest
ing savings; second, guaranty that
the capital value of the investment
would not depreciate; third. the aolilty
to withdraw savings at snort notice'
and. fourth, the knowledge that as hlgh
a rate OF interest would be paid on the
money of the small investor as on that
of the large
.aThe recommendations of this commit
tee were adopted by the chancellor OF the
excheouer and resulted in the appointment
of the national war savings committee 10
carry on educational work: to estaDllsh.
associations for cooperative saving. and
to devise. approve and supervise various
plans to promote and to safeguard the
financial soundness Of investment agen-
cies and societies.
Number Of Associations.
Up to March 1 there had been formed
in England and Wales over LOO local
committees for educational work and or
ganization. More than 26.500 war savings
filiated with the central body, the national
war savings committee. In the twenty
nine months between the outbreak OF war
and the end of December. 1916. the small
investor had lent to the British govern
Inent in one form or another s650.00O,0oO
In January and February. 1917. over TO-
600 new associations were formed. ana IN
these two months the total SUBSCRIPTIONS
az the small investor for the victory war
loan were at least s200.O00.000.
There are now in England and Wales
upon the books of the war savings asso.
Citations. Although this great army OF
small investors in government loans has
been created during the last year. savings
bank deposits increased almost $4,000
600 in 1916. Such an increase, in the face
of heavy investment in government loans,
shows the wonderful results to which this
system of thrift has led in Great Britain
America should unquestionably take
advantage OF England's pioneer WORK
and experience in this field In no
other way can the people realize that
individual economy. thrift ana saving
OF pennies. collected in units OF dol
lars and invested in loans TO the gov
eminent, will shorten and help win
the war
IF once we realize what others are
giving up II is no great sacrihce 10
arrange our households SO that maid
can take the place of a man and re-
lease the man for work which a woman
cannot do; to eat more simply. so that
less wastage occurs. In England as
YOU know the number of courses in
a meal is restricted by Law and heavy
fines are imposed for violating the
rules laid down. The sacrifices that We
can make along these lines are small
compared with the sacrifice of those
who are Offering their lives to the
country
"A most important consideration in
the participation by all the people in
this habit of saving. and OF investing
these savings In securities. lies in the
fact that the whole people thus
educated to the purchase and owner
ship Of securities. thereby giving
hope that our great Industries in the
future may be even more democratiZed
than today: that the number OF in
vestors in the securities of our rail-
roads. our public utilities and our in
dustries generally viii be so increased
that man, woman or child in the
country will be without direct and