The Washington herald., 1917-06-07
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the cOuntry's Best Newspapers.


sand dollars for the collegiate year
beginning next September. Amherst
College is likely to run a hundred
thousand dollars behind. These are
figures which were received today by
some of those who are studying in
next twelve months, and especially
the financial condition which tnsti-
tutions Of all kinds-educ- -tional, phil
anthropic and charitable-are likely
to meet with.
The falling of In the incomes of
colleges and universities will be oc-
casioned chiefly by the enlistment Of
students in the army or navy or in
other fields OF activity. From the
tuition fees and from the fees re-
ceived from the renting OF rooms In
dormitories, many OF the colleges de-
pend chiefly for, their income with
which to meet the current expenses,
including the payment Of salaries to
professors and tutors.
| In some way these deficits must
be made up. Appeals undoubtedly
will be sent to men of wealth. But
these who find that their incomes
are heavily cut into by the new reve-
nue. law may not be in position to
give aid which otherwise they would
cordially furnish. 1t is estimated that
we're an income tax graded up to
sixty per cent to be fixed in the new
revenue bill many OF the hospitals
md other philanthropic institutions,
IS well as colleges and academies,
would be seriously embarrassed. That,
n the opinion OF those qualified to
speak, would not be the case IL q
graded income tax uId not reach a
higher point than thirty-three and a
:hird or possibly forty per cent
The Liberty Lonn.
While there is no doubt that Secre-
tGry McAdoo will, on the appointed
day, be able TO report an aggregate
s, COZ, Co, 900. nevertheless II already en-
tails and will continue to entail, what
are really strong-arm methods II this
CONSUMPTION Is 70 be in a real sense
a popular one. 1t is within the pos
sibilities. thought not at all prob
able, that 1t may be found necessary
the methods which were adopted a
few weeks after the war began,
whereby the banks were compelled,
morally at least, to furnish the hun
dred millions Of gold which were
needed to save the credit OF New
York City. whose obligations in Eu-
rope were then payable or about due.
The Hoating of this loan has fur
nished an experience which men Of
finance say will be of the utmost
value when a new loan Is offered
to the public. Considering all the
difficulties which confronted Secretary
McAdoo when he was working out
the plans for offering the loan, and
the fact that the moral influence OF
its popular success would probably
be as great in Germany as would
victory in the field over Germany,
the proposition has worked, on the
some mistakes which may properly
be discussed after the loan has been
perfected so they may be avoided
when the next loan is offered to the
public. There seems to be no dissent
from the opinion that had Secretary
MeAdoo deemed It e1pedient to offer
the loan at the rate OF four or foot
and one-hah per cent, by this time
t would have been taken In FULL
VanderIip Misunderstood.
Either Frank A. Vanderlip did not
put into words his precise thought or
II he did, he so used words as to be
miSundeI stood, when he stated a few
Gays ago that one OF the banks had
subscribed eeventy-five millions to the
liberty loan. No one was more as
tonisned than he TO learn the next
10 say that one bank had for itself
subscribed seventy-fve million.
Leading bankers also read the state
ment with astonishment, modified
speedily by the belief that Mr.. Van
derlip had been misunderstood. The
statement was the topic in the Wall
Street district for the day and many
inquiries were made by those VINO
sought to Identify the bank Two or
three days later, 1t was announced
that Mr.. Nanderlip had in mind the
First National Bank. whose relations
with government, since the old ma
tional banking law was established,
have been very close. But he did not
mean TO say that his bank had sub
scribed for itself seventy-five millions.
For II that were the case then the
total subscriptions to the liberty loan
which came through this bank would
be considerably in excess OF one hun
dred million dollars. The subscrip-
ton Of the United States Steel Corpo-
ration for twenty-five millions of thesG
bonds went through the First Ma
tional Rank. There were other large
subscriptions which went through this
bank.
II 1t were necessary or wise, the
probabilities are that New York, sup
plemented by Boston, Pittsburgh and
PhilC delphis. would be able to take
the entire loan of two billions. And
found to have furnished one-half OF
the entire amount. But il that were
done, II would impair to some extent
the moral effect which Secretary Nc
,Ndoo hoped to secure by the M
nouncement late in this month. that
the loan had been a great popular
success and revealed the true dispo-
sition of the American people and the
attitude of the United states as an
ally OF Great Britain and France in
the war with Germany.
Rebuilding French Railroads.
The moment 1t became known to the
executive committee OF the American
Railroad Association for National De-
fense that an imperative necessity OF
war existed in France for the recon-
struction Of her railroad system, the
executive committee made prepara-
tions to meet this grave emergency.
This committee, in its personnel, is
highly qualified for this service. Its
chairman, Fairfax Harrison, with his
associates. Howard Elliott, Hale
Holden, Julius Kruttschnitt, and SAM
uel Rea. are railway men who have
achieved wonders in highly efficient
railway construction. What can be
done in the way Of railway facilities
in the time of war is shown by the
mastery achievements OF the Ameri-
can who was called from the Long
Island Railroad Company to take
charge of one Of the great railroads
of England.
American skilled laborers and me-
chsnics can probably more speedily
and eficiently repair railroads than
any other like group of men furnish
ed by any other country. Already
this executive committee has perfect
ed plans by means Of which a large
enough body of skilled mechanics and
officers ms well as engineers, will be
sent to France so that the badly run
down French railroads can be repair
ed when these Americans get there
IL thew have the neceaaar,, attnpIias