The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-07-11
SECOND LOAN
OF BILLIONS
IN SEPTEMBER
Sale of New Liberty Bonds
to Open on Fifteenth,
Wall Street Hears.
INTEREST RATE SAME
Report Unauthorized, McAdOO
Says-Third Issue Planned
for Spring.
RATE SAME

ANA
The second instalment OF the Liberty
Loan. amounting to $4,000. 200, 900. will
be offered for sale September Is, fifteen
days after the final instalment on the
first loan'has been paid to the Treasury
Department. This was learned yester-
day on reliable authority in the financial
district. which has already begun laying
the ground work for the next loan. The
rate will be az per cent. unless condi-
tlons change materially before the offer
ing date. and the bonds will be offered
at par.
The sale OF this $4,000. .0oo, 900 OF Lib
erty bonds will mark the disposal OF the
entire $4,000. 900. 900 authorized by Con-
gress under the war finance bill. and as
soon as the loan Is completed Treasury
officials and Congressional leaders will
begin work on new bond programme
which will result in the voting OF an
other big credit next spring, probably
larger than the present one II the war
has not come to an end at that time.
To meet demands on the Treasury
Department in the meantime in financing
this country's part in the war and the
purchases OF supplies by the Allies when
the proceeds OF the last loan have been
exhausted. certificates OF indebtedness
will again be issued.
Reserve Banks Ready to Act.
Publication of the Informal terms OF
the next loan brought a vigorous denial
yesterday from Secretary McAdoo. but
everywhere In the financial district 1t
was admitted that the terms were cor
rect in so far as they had been COM
pleted 1t was further stated that the
Secretary had already asked a number
or the committees in the various Fed
eral Reserve districts that took charge OF
the first issue to retain their organization
in anticipation of the second loan. This
request has generally been granted. In
denying the terms OF the loan Secretary
McAdoo issued the following statement
In Washington:
my attention has just been called to
a report circulated in New York city
that the next offering of Liberty Loan
would be made on the 18th OF September
next. and that the amount would be
50 BOO. 900 900. This report is wholly
unauthorized. l have not yet determined
when the next Offering shall be made
nor what the amount shall be- desire
to warn the public against recurrent. un-
reliable reports OF this character. When
the amount and date of the Offering has
been determined official announcement
will be made by the Treasury Depart
ment"
The financial district was disappointed
over the rate OF interest in the informal
terms. but pleased, nevertheless, at the
fact that the terms had become public.
for it is the opinion OF more than one
| banker that its effect may force Treas
ury Department officials to change their
minds regarding the interest rate. They
maintain that the task of selling an ad-
ditional $4,000 000, 900 OF bonds at az
per cent. will be much harder than Is
realized in Washington. especially II the
Liberty bonds outstanding at present go
below par.
New Campaign starts Here.
The campaign for the second loan in
the New York Federal Reserve district
has already been started. Since the
close OF the first loan a large number OF
| people have offered their services In con-
nection with future loans, and that these
volunteers can be lntelligently treated
and their services availed of Gov Strong
OF the Federal Reserve Bank Of New
| York has decided TO open a publicity
| office in a few days. The office will
! probably be located In the Equitable
Building and be associated with some
OF the existing offices now occupied by
the bank and the Liberty Loan COM
mlttee.
The official publicity committee APP
pointed by the Liberty Loan committee
to act during the last campaign has been
| dissolved and no new committee will be
| appointed at this time. For the present
officials Of the Federal Reserve Bank
have requested Guy Emerson, vice-presi-
dent of the National Bank of Commerce.
who was secretary OF the former Liberty
Loan publicity committee. to supervise
the details OF the work of the new
offices.
A small paid staff will be employed
and the headquarters will serve as a ral-
living point for all those who can render
effective service in publicity way
through bringing the thrift and patriot
ism which underlie tho Liberty Loan to
the attention OF all of the people OF the
second Federal Reserve district.
Plans for Second Loan.
When asked OF the plans for the sec
ond loan Mr.. Emerson said yesterday:
I'VE have been given TO understand
that the second Liberty Loan OF 1917
will be offered TO the public some time
In the early autumn. The amount OF the
loan has not been officially stated. but II
will certainly be large and will require
the very best efforts OF all OF us TO dis
tribute II as thoroughly as the last two
billion was distributed No official pub
licity committee has as yet been ap-
pointed, but there are many prepara-
tions for the next loan which ought "a
be started Immediately In order to avoid
the rush and strain which attended the
last Liberty Loan compaign. A great
many people who are influential with
large organizations have offered theiI
services on condition that they be given
plenty Of time to prepare their machin'
cry before the loan ls actually offered &C
the public. Many men who worked very
effectively In the last loan have stated
that unless they are now enlisted in the
Liberty Loan work they will feel undei
obligations to attend officers camps
which will open in the near future. We
feel that the raising of the money foi
the war is one of the most important
things to be done and that II should be
done eficiently and literally and that ar
organization should gradually take
shape which will be more or less per.
manent in character throughout the
war"
Laughs, Thoughts and Entertainment IL