New-York tribune., 1918-02-21
Federal Traffic
[Stof Correspondence
w yAsHINGTON. Feb. 2o.-wbs, -
Y Eastern railways got stuck in sno,r

w Eastern railways got stuck in sno,.
banks other things besides trafF,
were delayed. Tho cold that held the .ra;~.
held mp var financing. AS the weather w..
responsible for only part Of the interferero.
with traffic it would be better to say ths. \,
cause the transportation systemr ceased -
function "a much favored wcrd noyadar,
satisfactorily government financing is do
layed
One Of the reasons, at least, why the nav.
Liberty Loan has been postponed for time
IS that Mr.. McAdoo is waiting until the wheels
are going around properly and regularly .,
the railways before he invites people to IN
vest in some more government. credit. Tbo
railway blockade has affected all businas,
dsastrously. For months past now railu.~
embargoes and unofficial delays have bes,
more numerous than freight cars To tho
ordinary citizen sgho wanted 20 ship soms-
thing i. has seemed as If the business of ;hs
railways was 10 prevent trafFc instead OF to
carry t. II a New York lumbcrmaB has >
car Of Pacific Coast lumber adorning side
tracks for nine months the effect on lin and
the Pacific Coast lumber miller IS not alto
gether one Of enthusiasm for Liberty 'Losn
OSAANS
isn't business man in America who has 10,
been cramped and harassed by the restriction
Of transportation.
In such a business atmosphere Secretary q
The Treasury NcAdoo saw little encourage
nent for another one Of those big loans 50
he arranged a little coordination with Direr
tor General Of the Railways McAdoo. and the
latter promised to Get verv busy straight.n-
tho ilst-a,- ,orio Ar,I bo
ing thus obligated the Secretary Of the Treas
Try, the Director General felt that he was IN
. position TO Offer litsIe advice to the Sec.
retary. which he did, in something Ike this
manner:
"My railways keep me in prottv close touch
With people all 9Ter this great country. and /
have noticed that investors in railway sccuri
ties arc somewhat agitated about them, TGey
are the heavy buyers Of Liberty Loan bonds.
too. The holders of railway securities are
the backbone Of investment potentially.
While they are concerned about their railway
Investments they are not in that cheerful
state Of mind that prepares the way fer fur
ther investments. If You Viii permit me 10
make d suggestion, would say that one way
TO smooth the path OF the next loan would be
70 get that railway law through Congress pc
fore you start the loan
That's a profoundly good idea" answered
the Secretary OF the Treasury.
"Since YOU have received that suggestion in
such a good spirit continued The Director
General, Il would call yolr attention 70 an.
other matter that this discussion OF railway
finance has brought to my attention. I, is
this. if ! do not presume on your good nature:
our loans have severely taxed the Gnan-
cial resources Of the country that = erea.
many industries that contribute 10 the nro
motion of the success OF the war IN one ,rav
or another, are unable TO obtain the financial
accomm citation that Is necessary 10 the en-
largoment or even 10 the continuation OF their
business. Don't you remember that a " hiie
ago Charlie SchNab had alnos. 70 pawn his
watch in Wall Street, and had to come down
mere to Washington and beg piteousiy for
beggarly two Or three milton advance on the
billion dollar work he is doing for the gov.
ernment in order to keep the wheels moving,
Isn't it 4 joke that a man or an industry that
mas sheaves Of contracts with Uncle Sam
should have a precariou5 time fnancinge
SNch contracts ought 10 be as good Is ware
house receipts, but they don't seem 10 be.
lou ought to open up some kind Of Morris
loan bank for those hard-worhing boys who
have put their trust in Uncle Sam. but can',
get anybody 10 trust them. i you help them
loosen up you will also loosen W things all
over the country, which VII help some more
Win the Liberty Loan. About the tine you
get that attended 10 I VIII have the railways
hunting for freight and trying to solve the
surplus car problem. Then, believe me. YOUR
next Liberty Loan Will go through IKE
shot"
The Secretary Of the Treasury vas so
pleased with this luminous advice rom the
supreme railway manager t'1at lie paid me
latter the high complimen. Of venturnc 10
say that next to himself he considered tAe
Director General the best big iiraace fnan-
cier in the country.
And he departed and drew Up the b.ll for
the War Finance Corporation.
And the Director General went forth and
dispatched another food of speed-up tele-