New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-15
Telephone:
Hanover 651A

! ~ was noJ uIInculC 10 call together
the forces necessary to make organi-
cations in the larger towns and
cities. If there was a clearing house,
the work was half done. Where four
or five banks could be induced To
work together, the task was simpli-
fed, but in the small towns and the
farming districts there was little
done except by the small banks and
their difficulties were great. This is
enc explanation of the fact that the
greater part of the first two billion
dollars of the Liberty Loan was
taken by urban communities and 70
per cent Of it by the cities.
The reports also made it clear that
wherever an organization was made
the bonds were sold, but however ade-
quate the organization, however COM
petent the advertising and publicity
and however eloquent the speakers
personal solicitation was indispen-
sable. 1t was the personal appeal
that got names to subscription
| blanks.
Thousands of requests are made
that for future loans bonds be pro-
vided so that they may be sold over
the counter. People want bonds
when they buy them. They don't IN
derstand the buying of something
for future delivery. The Treasury
Department should take account of
this insistent demand and make
proper provision in advance of the
next instalment of the Liberty Loan.
The 5000 banks reporting to the
association expended for advertising
approximately S475,000. AS they are
for the most part country banks this
/ figure indicates a total expenditure
/ for advertising by all the banks of
three or four times this amount. In
/ the cities merchants contributed
many thousands of dollars for adver-
Using space, as did the investment
bankers and bond dealers. Three
million dollars as the expense Of ad-
vertising is modest. This huge sum
was donated to the government by
private concerns and individuals.
I Almost worse than this evidence of
governmental penuriousness was the
/ ineffectiveness Of much of the adver-
Using matter. Standardized adver-
Using prepared by experts and adj
dressed to the subject would have cut
! the cost in half and doubled its eff
cheney, according to the men who
have made the Investigations. How
ever, no steps have been taken to
have the law changed. The Treas
ury is given by the act authorizing
the bonds one-tenth of l per cent
for expenses, and large part of this
goes to pay the cost Of printing and
engraving.
The interest rate was a delicate
point in districts accustomed to rates
much higher. 1t undoubtedly re-
strained thousands from buying
bends. 1t will not be changed in the
next loan unless there is change of
mind in the Treasury and in Con-
gress. No such change is probable.
The two billion loan at 312 per cent
was a success. That answers all OBJ
jections to the rate.
The reporting banks have l,7O3,-
/ S27 subscribers to bonds who are
making payments on the instalment
plan. They estimated that $780,
600 of hidden money came out for in
vestment in the bonds and that large
sums have been withdrawn from
banks for boarding. Loans of S42,-
100000 were made by these 5000
banks against Liberty Loan bonds as
collateral.
The reports show that the Ger
man-American population, particu-
I larly in the Middle West. need at
tention. They need the stimulation
of patriotic addresses and instruc-
ton in the meaning Of the war 70
them as American citizens. The
campaign must be driven home to
them.
The organization for the sale of
bonds must be extended and made
much more comprehensive if every
household is to be reached. The
banks evidently wish to be helped,
not pestered; they want assistance
and guidance, not instruction and
dictatorial direction. Not less than
one thousand said they received too
many kilograms and too many letters
telling them things they already
knew. One man said if all the banks
got as many kilograms as his bank
did the tolls would have paid for a
larger oversubscription Of the bonds.
Sudden Drop in
Gill;