The Birmingham age-herald., 1917-05-16
Plans Will Be Worked Out to Provide Bonds of
 Small Denomination
WILL BRING WAR
 HOME TO EVERYONE
Another Two Billions Are to Be Called for Probably Before the End of the Present
 Year
By HOLLAND

New York, May 15.-(Special)-In the statement recently made by the Secre- tary of the Treasury, William G. McAdoo, relating to the issue of the $2000, ,00OO coo loan, there appears to be clear intima- tion that the secretary is persuaded that the time may not be distant when the government will find it expedient again to approach the American people, asking them for another large loan, perhaps as much as $2, ,O00, 100000. What the Secretary intimated, men of finance are certain will be the fact. perhaps before the end of the present calendar year.
 The Secretary is anxious that this shall be popular loan in the best meaning of the word. and he is. therefore, determined to issue bonds of denominations as low as $50. Very likely Secretary McAdoo is fa- maliar with the experience of John Sher- man, one of his predecessors as Secretary of the Treasury MT. sherman was per suaded while considering the loan, some times called the refunding loan and some times the loan with which to assist him iii resuming specie payments on January l, 1S79 that if the plain people had good chance to subscribe they would come for
 
 of the denomination of $50.
 He decided to make his test and to use the facilities of the New York postofflce as the center of the transaction. Many hundred responded to the offer, and long lines of presumed applicants for $50 bonds stretched from the New York postoffice far down Broadway. But within a day or two it was discovered that brokers had placed many dummies in this line with intent to secure bonds because an immediate premium upon them made cer- tain a profit for those who bought at par The result was that the brokers got most of the bonds, and Secretary Sherman found it expedent to end his experiment. Nevertheless he was always persuaded that the failure of this experiment was not to be traced to the disposition of the American people, but to the lack of ade- quate machinery whereby the bonds could pass directly from the treasury de- partment to the people,
 That was in time of peace and of great prosperity. Secretary McAdoo's offer is made in war times, but also while pros- perity undreamed of prevails throughout the United States. Moreover, Secretary McAdoo's machinery for distributing bonds of as low a denomination as $50 is excellent and the presumption is that large amount of these bonds will pass into the hands of the people,
 BONDS OF SAVINGS BANKS
 At present there is little apprehension lest the people who have deposits in the savings banks withdraw some portion of them for the purpose of buying govern ment bonds of the present loan. There is, however, some apprehension lest at the time when a new loan is offered and if the revenue tax measure is not nicely ad- justed to a loan proposition, the people would be disposed to withdraw deposits from the savings bank, certainly in case a new loan was issued in excess of 31a per cent
 That would be deemed unfortunate and might cause some disturbance in the se- curities market. For if a considerable portion of deposits in the savings banks