The Washington herald., 1918-02-14
BANKS ASSIST
U. S. FINANCES
Despite Heavy Dem IN DIS
They Will Aid New Lib
erty Loan Issue.

ers Of New FORK City were preparing
bids for an issue Of so-called New
York City Revenue bills.
The amount was, relatively speak
mg. not large. only SO. 900. 900. The bills
become due in May. The eagerness
with which bankers sought to obtain
this issue, the aggregate Of the bids
amounting TO nearly sl50.O0o. 900. is re-
garded as good proof that notwith-
standing the stupendous character Of
national finance which must be achiev-
ed by June 20. money market condi-
tons are OF such character as to jus
ufy conservative and wise bankers in
seeking to invest some part OF their
funds in New York City obligations
sggregating $50. 100000.
These New York City notes resemble
she exchequer notes with which Great
britain secures funds in anticipation
" tax payments. New York City will
be In receipt Of many millions Of
funds through taxation by May and
will be enabled thereby to take up
these temporary obligations.
Small, comparatively speaking, as
she amount OF twenty millions Is. and
secured as 1t was by ]. P. Morgan
and Company. il nevertheless IL
lustrates. from one point OF view. the
principle upon which Secretary Nc
Adoo based his proposition, that the
banks OF the United States absorb
within a few months three billions Of
Treasury certificates.
For these certificates will be avail
able for payment on account OF the
next liberty loan which. according
20 the best opinionsaSn this city. is
% aggregate about $500, 10000 dol
ars.
The new financing which Is now
5eginning and whose technical fea-
ures cannot be readily understood
~ the public. but only by bankers.
will continue until the end OF the
iscaI year. 1t compels those who are
undertaking this work to think. as
he saying Is in seven figures.
The aggregate amount is to be BILL
ions instead of millions. We are to
-aise within a few months more
money by several billions than the
aggregate debt OF the United States at
he close Of the civil war. In
title over a year the government will
laye borrowed from the people at
cast twelve billion dollars.
Great Cooperation.
In early September of 1914 We had
he first illustration OF the readiness
md capacity OF the American banks
o cooperate upon a great scale.
they united. in proportion to their
'esources, SO that they were able to
urnish S1CO. O.COC. 90 in gold within a
ew days. This cooperation was the
iTst of the many great achievements
n financing since 1914.
1t has been a remark commonly
n0An he rNf fhnaa hn ha No
:tudied our financial needs and who
ave looked into various propositions
which have been made with intent
10 reach the best method of securing
he billions which the government
tecds. that Secretary McAdoo must
lepend. at first. at least. in great
measure upon the banks of the United
;tateS for success IN floating his loan.
The American banks will serve as
he right hand OF the Secretary. They
WILL in addition to the work done
" voluntary organizations, gradually
mt surely pass from their own con-
rol into the hands of the public the
hird liberty bonds.
1t is almost fnconceivable that.
within the time fixed by Secretary
fcAdoo for the floating OF the third
oan. presumably to be 81, ,OOO, 900 O00
his should be absorbed by the Ameri-
an people as easily and as speedily
Gs the second liberty loan was alb
orbed. Therefore the banks must
IeIp.
There is grave doubt about the
.bility of the great Industrial cor
lorations to subscribe to the third
Dan as heavily as they did to the
econd and to the first. There are
ions will find IT impossible to make
ny subscriptions.
Their expenses have increased and
heir taxes are now so enormous as
. leave little available surplus in
ONE cases. which could be drawn
Ipon for subscriptions to the third
oan.
People Take Loan.
Therefore Secretary McAdoo has ap-
rarently adopted a reasonable and
financially sound expedient of sum-
aonins into cooperation all OF the
american banks. at least all of the
Sational banks. and as many Of the
tate chartered institutions as Dos
fble. so that. gradually. at intervals
{ two weeks. funds may be secured
epresented by Treasury certificates,
bese certificates in turn being avail
BILE for payment on account of the
Ioerty loan.
Ultimately the great bulk OF the
bird liberty loan will undoubtedly
ass into the possession Of the Amer
ian people. The situation as II pre-
ents itself to Secretary McAdoo now
ss suggested q thought voiced by
nany Of the bankers, which Is that.
D order to noat successfully the next
oan and the others which will sue
ssd II IL the war be continued, Il
. vital that Industry Of all kinds
speeded up to the highest pro-
uctiye capacity.
For there u to be profitable narket
or the production Of commodities Of
u kinds. and Il 10 through the re-
urns which the marketing of these
commodities make possible that funds
Ttn be secured which may be loaned
o the government
!, One item OF which Secretary Nc
Adoo il believed to have taken due
= ICED Is the new wealth which the
buntry has secured through the crops
nd meat products Of 1917.
The official estimate of the money
alue Of these agricultural products
lxes the amount at approximately
p.oo. 10000 and this Is all new
Eealth- II will serve greatly 70 aid
he govern ment in floating the next
sue Of liberty bonds and such
urther issue as In the present caIen-
ar year Secretary McAdoo may find
: necessary to offer.
HOLLAND.
BALTIMORE GRAIN.