The Washington herald., 1917-05-18
HOLLAND LETTER
The Biggest Daily
Financial News Feature
of the Counhy's Best Newspapers.

T NAhAdAll AAAI<A0Oos 0cCANtdTy VI eho
Treasury. started early this week upon
his campaign to persuade the American
people. and especially those of small
means, to subscribe to the 5000. .0oo, 900
loan, with the best wishes OF leaders in
the financial district here and, 1t is
learned, in other financial centers, for
the success of his undertaking.
During the past week or ten days, and
especially since the visit OF Lord Cunliffe
in New York, the men who are ac-
customed to large undertakings in
finance have been speaking In words OF
admiration of one quality which Mr.. Nc
Adoo has revealed. They say that his
courage in undertaking this stupendous
transaction has not been surpassed by
any of his predecessors in that Office not
even by Alexander Hamilton in the first
years OF the republic.
Some comparison has occasionally been
made with the experience of Salmon p
Chase. when he was serving as Secretary
of the Treasury in President Lincolns
administration. Secretary Chase reveal
ed abundant courage in time of desper-
ate emergency, but he was handicapped
by lack of experience in the world of
finance, and also by the unwillingness of
Congress speedily to adopt his recon-
mendations.
OF "hE
He had one embarrassment which Sec
retary McAdoo does not contend with.
For when Chase became secretary of
the Treasury. the Treasury was depleted
and the credit of the government was
very low. In another respect, Secretary,
Chase's situation, when he became min
lister Of finance, was similar to that of
Mr.. McAdoo today, for he did not know
how long the war between the States
would last, while Mr.. McAdoo confesses
that he has no idea when the war in
which the United States is now one of
the belligerents will end.
Whatever criticism has been spoken
respecting the methods adopted by Mr..
McAdoo for handling this loan, has been
kindly and due allowance has been made
for the extraordinary difficulties which
confronted him, as well as for the mag
nitude of the proposition which he has
courageously undertaken. Secretary Nc
Adoo has been quoted as having said
that he has abundant faith that the
American people will subscribe for the
full amount of the loan, and, further
more. a strong hope that the loan will
be oversubscribed. He bases that reas-
onng largely upon his belief that II has
always been characteristic of the Amerl
can people to do big things in a big
way, and to do big things in big way
for noble ideal makes an irresistible
appeal to the American people"
Some of the Big Things.
Some of the big things with which
Secretary McAdoo will be associated di-
rectly OF indirectly, will come as a result
OF the subscription to the full amount of
the SO ,0J0, 900 bonds. One of these big
things to which Secretary McAdoo has
given much thought is the utilization OF
the money which will be lent to the al
lies, who VIII use much the greater part.
If not all of II, in buying supplies in the
United States.
There Is to be within a few days, or
as soon as arrangements can be perfect
ed, a single selling agent. or agency,
which will treat with the representatives
of the allies who are to make purchases
in the United States, and who will utilize
the loan for that purpose.
This Will result In the discontinuance
OF ]. p. Morgan & Co. as the CONNER
cial agent Of Great Britain, a relation
which the house has sustained since
early in the war. The publication a few
days ago of the news that a single agent
is to be the seller to the allies of the
supplies they buy here, caused some con-
cern to some OF the manufacturers who
have for a year or two sold commodities
to Great Britain through ]. P. Morgan
& Co. Their relations were so satisfac-
tory that inquiry was made of Washing
ton whether the report were true and
the hope expressed that the plan would
not be adopted. The manufacturers
learned In Washington, to their surprise,
that the proposition did not emanate
originally from Great Britain, but in
stead was warmly recommended to the
British authorities by ]. P. Morgan & Co.
Morgan Recommended Change.
As soon as it was known that Presi-
dent Wilson would have the power to
requisition food and authority over its
distribution, that fact, in connection with
the announcement that the loan Of 81, OOO,-
10000 was to be utilized for the benefit
of the allies, who would spend all or near
ly all of it in the purchase of supplies
in the United States, moved ]. p. Nor
gan Co., to communicate with those in
Great Britain for whom they were act
ing. warmly recommending that the re-
lation which had for two years been main
tained, be transferred to a government
controlled agency There were many
economic reasons to the advantage both
of the United States and of the allies
why control OF that kind should pass un-
der the authority of the government
There are reasons for suspecting that
Great Britain at first did not approve of
this suggestion, but her leaders speedily
saw the wisdom of 1t and recommended
that action Of that kind be taken.
Another Big Thing.
As soon as the selling agency to the
allies passes under the control of the
government, another undertaking which
will be of unsurpassed magnitude in its
particular field, will be centered in the
Morgan banking house, the offices being
the identical rooms which heretofore
have been used by the house in its busi-
ness as commercial agent of Great Brit
ain. This undertaking is to be the es-
tablishment of the Red Cross work upon
lines which will be fully in sympathy
and on all fours with the other stu
pendous undertakings which the gov
ernment has now entered upon.
In all probability this will result in
adequate coordination Of all the under
takings that have been perfected to fur
nish aid, comfort and relief to the armies
and the sailors wherever they may be.
II is to be voluntary undertaking and
for that reason the facilities of the Nor
gan banking house and of its working
force will be furnished without demand
for any compensation.
In its way, this undertaking when COM
pleted and set in full operation will match
the vast operations in the way of pur-
chase OF supplies which heretofore have
been carried on by the Morgan house for