The Washington herald., 1917-08-30

will be obtained by loans made by the
government of the United States. We
lend England and other nations the
money with which they buy the COM
modities in the American market.
There is a difference between trans
actions of this kind and the one
which characterized the entrance of
japan into the American money mar
ket at the time of the war with Rus
sia. Japan needed munitions of war
and supplies of various kinds and
found the most available market for
them in the United States. Her gov
ernment, therefore, approached Ameri-
can bankers and secured a loan of
many millions, the understanding
being that the greater part of this
money would be drawn upon by Japan
to pay for her purchases in the United
States. Japan was faithful to that
understanding. That, however. was a
negotiation between American bank
ers and Japan.
Now the United States govern
ment, through the Secretary of the
Treasury, is advancing on our own
account billions to the allies ex-
pecting that this money will remain
in the United States and be utilized
in payment for commodities bought
here. In the case of Japan it was
a private bankers transaction. In
the case of the transactions now in
progress the advances represent CO.
operation between the government
of the United States and the allied
nations, and 1t is one of the fea-
lures of international cooperation
to which President Wilson referred
when, in his reply to the mission
from Japan few days ago, he said
that cooperation between the ma
tions of the world is a striking fea-
ture of the new conditions created
by war.
Ten Million Subscribers.
Frank A. Vanderlip is quoted as
having said at Chicago a few days
ago that in his opinion there will
be ten million individual subscrip-
tons to the second liberty loan. No
one now knows what the aggregate
of that loan may be. 1t certainly
will not be less than three billion
dollars and may be s much as four
billions.
Mr.. VandeIlip's prediction of 1000. =
900 individual subscriptions to the sec
ond loan is regarded here as proof
that he has some knowledge of the
details of this contemplated loan. He
does not base his judgment entirely
upon the fact that the first liberty
loan was oversubscribed by $780,
000,O 900. He apparently bases II upon
his understanding of the preparations
which are now in progress whereby
successful appeal can be made to
every American citizen to invest in
these bonds to the limit of his ca
paCity. But II there are to be lO.-
100000 subscribers to the second loan
there must be unusual, absolutely
original facilities to enable those who
possess small incomes or have little
savings to make some investment of
them in the loan. This seems to
Justify the inference that Mr. Van
derlip believes that facilities of this
kind will be providid so that a man
who has perhaps on any one day
not more than a dollar will he able
to make use of it in subscribing for
liberty lean bond.
Steel Barges on the Cannl.
The New York State Canal Board.
through a Subcommittee, now recon-
mends that the government at
Washington begin Immediately the
construction of steel barges so that
grain can be carried by the improved
Erie canal to a terminal I'm New
York harbor. Undoubtedly il was the
probability of a demand for steel
barges by the Federal government
and by the public after the war is
ended which in part persuaded the
United States Steel Corporation to
plan the construction of steel barges
at the shipyard which is now estsb-
fishing at Tidewater. near Newark.