The Washington herald., 1917-08-20

Some of those who are to assist the
Secetary of the Treasury, Mr.. McAdoo,
in marketing the second liberty loan,
say that 1t might have been worth
while had the secretary added a line
or two to the recent warning that the
public should not be misled by any re-
ports regarding the next liberty loan.
The men who will help him would
have been pleased had the Secretary,
in addition to his warning, said that
at the time he makes announcement
that the loan is to be placed upon the
market he would also give full and
statement respecting
the terms upon which the loan is Of
fered and in clear detail what he ex-
poets the banks and the organizations
to do in the way of supporting the
loan. Were Secretary McAdoo to do
this he would avoid a mistake, which
was made when the first liberty loan
was offered by him. At least a week,
and in some cases ten days, passed
before the bankers who were to assist
in selling these bonds and the various
organizations that were to take up
the work of soliciting the public had
a good understanding of what was ex-
pected. In some parts of the West
announcements from Washington were
very confusing. kilograms were con-
Trajectory, and in the Northwest a
finely perfected organization was. ac-
cording to its leader. completely
balled up by reason of these misun-
derstandings.
Nevertheless there was no disposl-
ton to criticise Secretary McAdoo be-
cause it was recognized that he had
undertaken a task of unprecedented
magnitude and was seeking to sell, TO
the American public within a few
weeks, bonds of the aggregate value
Of So 900 900 900. The secretary had few
or no precedents to guide him. He
was compelled to do the best he could.
But the experience met with when the
first loan was upon the market should
be. in the view Of those who are to
aid I'm marketing the second loan, OF
great value.
The various reports which Secretary
McAdoo calls unreliable that have
been in circulation regarding the
second liberty loan have been taken
here by those who are to assist the
Secretary as worthless They have
had little or no effect in formulating
opinion. 1t is recognized that when a
Secretary of the Treasury has in con-
temptation an important piece of
financing 1t is vital that he keep his
own counsel until ready to make
formal announcement to the public.
John Sherman, when Secretary OF
the Treasury in the administration
of President Hayes, was compelled,
as he said. to put on a mask so that
spectators and others might not gain
any information respecting his pur
poses until he was ready to give the
information to the public.
Nevertheless there are some reason
able differences TO be drawn from re-
cent conditions and statements re-
specting the general character of the
second liberty loan. In the first
place it is announced that Secretary
McAdoo plans a campaign tour as
soon as the loan is offered to the
public. seeking especially for his
auditors the farmers of the Middle
West, the Northwest and the South.
That purpose leads to the inference
that the Secretary does not contem-
plate placing the loan upon the
market until the farmers have re-
ceived payment for their harvest:
They will begin to receive payments
in October. Presumably, therefore.
the loan will be on the market by
the time the frost colors the leaves.
Another reasonable inference refers
70 the rate of interest which the
Secretary will deem it eXpedient to
nominate in the bond. He has already
authority from Congress to market
ZOO 10000 more bonds at the rate
of 3 IL per cent. But If the rate
should be increased to 4 per cent for
the next loan Congress must gram
the authority. AS the Secretary
evidently plans legislative action, au-
thOrizing a large increase in loans 1t
is presumed that he also deems a rate
of interest of not les than 4 per cent
as the one necessary to fix upon.
Therefore there are two reasonable
inferenCes respecting the new loan.
one being that it will be in the market
in the mid-fall and that a special
appeal will be made to the farmers,
and the other being that the rate
of interest will be fixed at AZ per
cent.
1t is also suspected that the Sec
retary does not look for so large con-
tributiOns to the new loan as were
those which were made by the cor
porations when the first liberty loan
was upon the market.
Some time last week, perhaps about
four or five days before there came an
nounccment that the Pope would, in
a tentative way, suggest basis Tor
peace negotiations. there came infor-
nation to some of the leaders in the
business world that peace proposi-
tions might be speedily made. One
of these leaders said that they would
probably consist of. first. no annexa-
tions and no indemnity; second,
freedom of the seas; third. disarma-
ment: and fourth, the restoration to
Germany of some of her colonies.
When asked what was meant by the
freedom of the seas he said disarma-
ment of the great navies. The rea-
sons are excellent for surmising that
some of those who are in touch with
affairs at Washington were informed
of the coming OF peace propositions,
although they did not know from
whom these propositions would come.
They were of opinion, however, that
they would be due to German diplo-
matte strategy. and would not be ac-
ceDted by the allies.
The death of r. L. Norton a few
days ago reminded some of those who
were III lHe tnlch OF Ine terrlnc Dattle
for the control of the Northern Pa
cifc Railroad under the generalship.
on the one hand, of the late ]. P.
Morgan, together with James ]. Hill,
and, on the other hand, by f. H. Har-
riman. 1t was IN that titanic strug-
gle. which at last was deadlocked,
that there, was one quotation for a
block of Northern Pacific Railroad
1f nh A1I e. Il
When 1t is remembered that not
long before that sale Northern Pa
cific stock was quoted far below
par, then the significance of this
amazing increase becomes appar-
ent. The broker who handled that
transaction vtas Mr.. Norton, and
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