New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-15
Saturday, July II, 1917

the first Liberty issue of bonds were
closed less than a month ago, gov
eminent expenditures and advances
tc our allies have been so enormous
that the greater part of the $4,000
100000 has already been spent. Con-
Sequently, fiotation of the next in
stalment Of the $4,000, 100000 loan
authorized by Congress cannot be
long deferred and the financial dis
t1ict has begun to discuss the prob
able terms and date of issue. The
discussion began early in the last
week, when a report from Washing
ton stated that $3,000,00O,O0O would
be brought out on September Is, and
that the rate of interest would be
3l2 per cent. Secretary McAdoo
promptly issued a statement to the
effect that the report was without
foundation. Nevertheless, it was
given wide credence in local bank
ing circles, the Secretary's denial be-
ing regarded by some as technical.
But while it is generally conceded
that the rate Of interest will not be
raised, however desirable that might
be, opinion as to the date of issue
is by no means unanimous. One
we'll informed banker believes that
it will not be brought out before
October l, and possibly not until Oc-
tCber 10. 1t would be desirable to
postpone the issue until that time,
he says. meanwhile financing the
Treasury through the issue Of certi-
fcates Of Indebtedness.
1t is pointed out that a new set of
subscribers will have to be found
for the second loan, and one of the
best fields for subscriptions will be
9mong the farmers. Judging from
the reports of some 5000 banks to
the American Bankers Association,
farmers displayed less interest in the
first loan than almost any other
class of people. The reason for this
is not hard to find. In the first
place. it was not feasible to per-
sonally solicit subscriptions from
many of them. In the second place,
they had only vague idea of what
the war meant to the United States.
But even more important was the
fact that the loan was brought out
at a time when farmers needed all
their financial resources for planting
and preparation for the coming har-
vest. Also, the crop outlook was, to
say the least, decidedly dubious.
That these things caused the
farmers to hold back is clearly indi-
Gated by the statements Of country
hanks, of which the following are
examples:
"The farmers here are rich, but
they bought very few bonds. They
don't know much about the war, but
they are opposed to it."
Ninety per cent Of our quota was
sold to townspeople. Farmers seem
to place interest rates above pa
triotism"
"The farmers in this vicinity were
too busy to give it time and thought
perhaps they would have sub
scribed if bonds had been sold at
harvest time"
"This is a farming community,
and the bonds will sell more readily
when the farmers market their crops
this fall"
"Most Of our farmers have money
only once a year, October TO Febru-
ary. Hence, our hope that
better results will be obtained at the
time Of the next call"
"The farmers, most prosperous of
cur people, did not respond in the
manner they should. In future cam
paigns some plan should be adopted
TO reach them"
Farmers in this vicinity are not
investing as they should, partly on
account Of the bond issue not being
brought TO their attention and partly
on account of the poor crops last
wear and uncertainty Of the coming
crop. Until it is harvested, sub
scriptions in the rural districts will
not amount to very much"
with a good crop | think we can
dispose Of some Of the bonds next
fall, but not until then
These are but examples OF hum
dreds of similar reports, all pointing
to the possibility Of a great sub
scription from the rural districts II
the next loan is postponed until the
crop movement is over and an IN
tensive campaign is conducted among
the farmers, especially since it is
now apparent that the early crop
proroise will be considerably bet