The Birmingham age-herald., 1917-09-11
MOST UNFORTUNATE.

New York, September 1o.-(SpeciaD Benjamin Strong. IT,, governor of the federal reserve bank of the New York district, briefly summarized the d1scus- sion which recently took place at the federal reserve bank to the end that there may be begun as speedily as pos sible highly perfected organization by means of which the next liberty loan can as speedily as possible be sold to the American people.
 One brief sentence in Governor Strong's statement has been much com mented upon by those who expect to take part in floating this loan. He said that the exact date of the beginning or this nationwide campaign or soliciting in behalf of this loan is not known. Be- sides, the bankers are not familiar with the aggregate amount of the bonds which are to be offered to the public and furthermore there are various other de- tails of which the bankers are ignorant Probably the rate of interest Is one of these details. Nevertheless they look upon a statement made few days ago by Secretary McAdoo as indicating that this campaign must begin within few weeks and that whatever the amount to be raised may be the utmost energy and persistency of those who are to aid the Secretary In floating the loan will be required in order to make an immediate success
 This statement reflects some of the enbarrassments the bankers here and elsewhere were compelled to face at the time the first liberty loan was offered From the northwest there came strong expressions of regret that at least week or 10 days passed after the offer ing was made before the organizations In that section of the country had any Idea of what they were expected to do and how they were to secure the float ing in that great section of the allotment of bonds decided upon by Secretary Me- Adoo for that section. One of the best authorities in the northwest informed friends in New York that if the organi- zations there had been able to begin promptly and understandingly as soon as Secretary McAdoo announced the of fering tho district probably would have been able to raise several millions more and in fact very likely would not have fallen behind the allotment fixed for 1t.
 The bankers of New York city who met a few days ago in the office of the fed eral reserve bank to discuss plans for or ganizing campaign for the sale of the second liberty bond represented as a whole the financial strength of the banks of New York city. Presumably they exchanged views respecting the pro- portionate part which the banks of New York city will have to assume in or der to secure the success of the loan. That question has been much discussed in private and informal conversation. Upon one point there is general agree ment and that IS that New York banks may be compelled to accept larger share of the loan than they did at the time of the floating of the first liberty loan
 Several reasons are given for this view. One of them refers to the doubt that pre- yails with regard to the subscriptions which the great corporations will make No one believes that the United States Steel corporation will be In position to subscribe $25.oe00Oo to the second liberty loan. The recent financing which the Bethlehem Steel company has perfected in order to secure fresh capital makes 1t doubtful whether there can come a very large response to the appeal from that corporation. Other corporations are now somewhat puzzled, not knowing ex- l actly where they stand. The imposition l or excess profit taxes, the determina- ton of prices and other factors must be l considered by them before they will be
 able t0 say whether they can contribute anything or if they do make subscrip. 1 tions, how much the amount will be. l Then. too, there is doubt about the abil. itty to secure large subscription list from clerks and other employees of tht great mercantile houses On the other hand. bankers a9e persuaded that some jbf the very rich men will make as large subscription to this loan as they did te the first liberty loan and perhaps larger The surmise is general that John D
 Rockefeller will buy as many second
 liberty loan bonds as he bought of tn, I first issue and perhaps more Probabl, the immunity from taxation which is t, De a feature of these bonds will temp some large investments. Bankers at thi meeting were inclined to think that tn, new loan will bear interest at the rat I of per cent. Their Judgment wa
 based, however. on certain inference rather than on any good information. l Frank S. vanderIip and other of tn
 influential bankers of New York are per suaded that the second liberty loan which at the time he spoke hs thought