The Washington times., 1917-04-10

stimulating and encouraging the al
lies. but also in a proportionately de-
pressing and demoralizing effect upon
the Germans"
Larner Expects Generosity.
John s. Larner, president OF the
Washington Loan and Trust Company,
thinks that because of the wide op-
portunity now for investment in
bonds at attractive interest rates, the
rate OF interest on the Government is
sue should be as high as II is prac-
ticable to make its
81 believe, however" Mr.. Larner
continued, that the people are going
to subscribe to the bonds very gen
erously. irrespective of the interest
rate, purely from patriotic reasons.
But there is no question that such
large issue as is proposed could be
more easily floated at a rate OF inter
est somewhere nearly in proportion
to that paid by other. safe invest
ments. / believe that at the rate of
3R per cent the issue could be float
ed very easily at this time.
Not only will Washington banks
take their proportionate share the
bonds, but / feel sure that both the
banks here and the general public
will subscribe more generously to the
bonds. in proportion to the population
and wealth of the city, than anywhere
else in the country"
Mr.. Larner thinks ii might be ad-
visable to. divide the issue into in
stalments expending throughout a
period of six months or a year, but
points to the fact that the delay may
mean that the government will have
TO pay a higher interest rate than It
would If the entire issue were hoated
now.
All In One Issue.
John Poole, president OF the Fed
eral National Bank, and who is also
president of the District Bankers As
sociation, thinks the entire five bill
lions should be put on the market at
once. The interest rate, he thinks.
should not be less than 81 per cent,
and he believes that 3.65 per cent
would be even better. This, he says,
would give the investor a penny a
day income from every dollar invest
ed, and would tend to make the bonds
popular with small investors.
II the rate is 81 per cent or bet
ter, Mr.. Poole thinks the savings
banks of the country would be able
to absorb a very considerable amount
OF the bonds.
: Most Of the savings banks operate
on a per cent basis" Mr.. Poole said.
''and they should be given a little mar
gin over this
Mr.. Poole believes the notes should be
in denominations running as low as
80. so that even the smallest investors
can place savings in this way, and
that the notes should be short term. say
FIVE years, and should be convertible
into any subsequent Government bond
issue.
Il believe there will be a tremendous
populaE- subscription to these bonds"
Mr.. Poole continued. "and that the en-
tire amount - stupendous though 1t
sounds-will be absorbed very quickly.
1 believe that every bank in Washing
from local banks will certainly run into
millions"
Henry Favors Low Rpte.
s. ]: Henry. vice president OF the
Munsey Trust Company. thinks the
50. 900 900 900 should be made avail
able for the allies as soon as possible
and that the rate of interest should
be as low as possible,
ITO win this war America and the
allies need men and they need money"
said Mr.. Henry. Let no one assume
that the struggle is in its last stages.
History furnishes no parallel TO this
war which would guide US in calculat-
ing its duration. This much we do
know-our foe is resourceful and de-
termined. He conceives that he Is
fighting for his home and for his free
dom, peculiar as that brand Of free
dom may appear to us. A strong peo-
pie united on that platform is not
easily conquered.
Facing these facts, our Government