Rock Island Argus., 1917-09-28
FINAL PLANS
ARE MADE TO
LAUNCHLOAN
Secretary McAdoo Conf
dent Nation VIII Break
Record of First Issue.

Washington. Sept 2s.-Finai prep
arations for the launching Of the sec
ond Liberty loan of 000,000G00 OF
more were completed today with the
publication of the details Of the Of
fering by Secretary McAdo0. A ma
tiOn-wide campaign TO obtain patriotic
subscriptions 10 the loan viii be
started next Monday and viii close
oct. %
Prominent among the features Of
the new offering is the privilege oE
converting bonds of this issue into
bonds of any subsequent series carry
ing an interest rate increase OF four
per cent. Amy person who subscribed
TO the first issue of bonds bearing IN
terest at 3ta per cent may convert
his holdings into the new per cent
securities at his option, but the new
4 per cent bonds are taxable under
( the surtaNes of the new income tax
rates while the 80 per cent issue
is exempt Holders of large amounts
undoubtedly viii keep their tax e1-
empted bonds. although they bear
lower rate. while the smaller holders,
who have not enough TO come under
= the new surfaces. viii convert their
bonds to the higher rates
Atlantic City. y. j.. Sept. 26--Eas
I over-su description of the S3,000.0O0.000
second Liberty loan was confidently
predicted by Secretary McAGO0 IN an
address here today before the Amer
ican Bankers association calling on
+ the bankers to give the same patriotic
support TO the new bond Issue that
they gave to she first
1T has been urged upon me. said
THE secretary, "that many men Of
wealth will refuse to buy the 4 per
cent bond with liability to super-in-
come taxation should be Ioath to
believe this. but IF 1t is true the posi-
tion of the government must always
+ be to. offer a bond upon terms fair s$fd
equitable To all alike and which viii
made the widest possible appeal TO
all the people without regard to the
+ fact that a man may be rich or poor.
+ 1t has been suggested to me that pa
/ triotfsm should play no part in the
i sale of government bonds I do not
{concede this although / believe the
people viii buy these 4 per cent gov
ernment bonds on their merits Pa
triotism is first. love OF country above
evervthing-abOve life itself; second,
! love of country combined with thar
vital interest in the nations S welfare
and safety which viii make secure the
material interests OF each individual
and promote his happiness and pros
+ perity.
"If this be true the man of wealth,
with patriotism or modified patriot
ism or without patriotism, has & great
cr stake in the security of the govern
ment than any other class, because II
/ the governments credit is destroyed
and disaster comes upon the country,
as il inevitably viii if the govern
ments credit fails. what is property
worth to the rich man, what is life
worth to the free man?'
Tremendous Financial Task.
/ Emphasizing the tremendous inan-
cIaI task ahead OF the nation Mr. Nc
Adoo pointed out that 1t would be nee
i essarv 10 raise between 13 and IL bill
lion dollars by additional bond issues
/ before June 30. 1918. This viii not he
easy, he said. but it can be done by
everybody. banker. business man and
men and women in every walk OF life
+ joining hands to see it through.
Fortunately" he added, the re-
sources of America were never SO am
4 pie for ourselves and SO formidable for
our enemies as now The combined
resources of the national and state
banks lincluding trust cOnpaujes) Of
1.-THE United States are now S37 600, ,0o0,-
eco Al the outbreak Of the Civil war
+ the com bined resources of the banks
we're estimated t0 be S1s5000G0 600.
and vet with these limited banking
! resources the union government Tais-
/ cd $4,000. .000, ,000 by bond sales, or
twice the amount Of the banking re-
/ sources of the country. Upon the
same basis we should now be able 30
raise %74.000,000,0 ,000 through govern
ment loans 7 am not suggesting thar
/ this may be done, / am only drawing
g comparison.
The secretary reviewed the causes
+ for Americas entry into the war. de
claring this could not be done too often
/ because of the efforts Of the noisy
aeitat0rs and disloval writer's to con
! fuse the issue Much Of this propa-
ganda. ne said. probably had been car
ried on with money left behind lor the
F purpose by Won Bernstorf. the adroit
+ and maIevoleut German ambassador"
Two Reasons for War.
{ While it is true that America went
10 war TO make liberty and democracy
/ secure throughout the world. said SIR
+ McAdoo il must be remembered that
( she entered also for a more immediate
I reason the Waut0n disregard for
/ American rights and ruthless destruc-
+ ton of American life and property. If
+ the United States had acQuiesced in
the kaiserS order that its shipping
stay of the seas. he declared S3, 3,40G.-
600 GOO Of American commerce A-ith
Great Britain, France and italy would
/ have been cut OF and with one stroke
/ Of his pen the kaiser would have ac-
4complished more destruction Of cur
farms in cur factories and in our
mines than he couid achieve with all
! the armies and navies of the German