The Washington herald., 1918-10-18
FOURTH LOAN
LAGS In n. Y.
Bankers Trust Co. Head
Charges Procrastination,
Says Holland. =

Seward Prosser, president of the
Sankers' Trust Company. but occu-
pied now for many days with lib
erty loan campaigning. and especial
~ with solicitations of people who
nave great wealth and of CORPORA
uons which are known to he -four
bhins, stated a day or two ago that
perhaps the chief reason why the
subscriptions to the Fourth Liberty
Loan In the New York district have
essed alarmingly was to be found
IN the procrastination which has
characteriLed many who contemplated
subscribing. but who decided to wait
until the last moment
Preerastinstion q Factor.
Procrastination may explain the un-
expected slowness of the New York
district to meet its allotted sub
scription OF s.. 81. .0oo 900 in round num-
oers But that is by no means the
only reason At least three other
influences caused some part of the
delay. and two of these were due
to misunderstanding on the part of
thousands Of plain people respecting
the terms upon which they could bor-
row money at the banks with which
to pay installments upon their bond
purchases
Many persons who subscribed for
bonds in small denomination, and
sone who made heavier subscriptions
Unon the installment plan when the
fnird Liberty Lean was offered have
nov vet been able to nay all Of their
installments. they did not see their
vsy clear to buy new bonds while
heV are in debt for those bought
lss' spring.
Almost all ~ tho,a -. 49,. -
IN tois way embarrassed were pur-
cN"sHrs OF bonds of small denom-
tra'ions. $50 and $50 in most cases
'H he aggregate amount of these
N''rch"s~S was not very large. in
cH-"nar'sHn with the total offering
'i,"''-~n o. nevertheless, the num-
N"r of individuals who subscribed
Vas % large rs to cause much com
n'""f OF favorable character. for
" Tns felt that these people Of mod /
80" means were learning how to !
N"e"me investors in bonds.
PuhIIe In Dark.
There were many others who were 1
@'Snosed to buy bonds. but who could |
not see clearly their way to paving
tor them upon the instalIment plan. |
Inet was due to n misconceptiOn |
which should not have been possible
class that IL they borrowed the |
money at the. bank. with which to |
nav for the bonds, after having made 1
2 first Daynent. they would be Obliged |!
to make full payment in 90 days. !
Figure as best they could. they were |
unable to make anv computation |
which would show them how they /
could pay up the loan at the bank |
and get the bond in 30 days.
Great Overnight.
All along the thoroughrares. and +.
at the stands which were erected on 1
Fifth avenue and at other places so !
that speakers could conveniently ad-
dress the great crowds. almost all
the pleas that were made by the
speakers were based on patriotism
and sentiment. But il was not neces-
sHry to appeal to the crowds in New
York on patriotic or sentimental |
grounds. There Is no doubt that an
unexampled wave of patriotism and /
lofty sentiments prevails in New
York
What should have been done by the
speakers was to explain to their
hearers that they could go 10 a bank
and buy. say. a hundred dollar bond,
paying down the first instalIment.
then the bank would carry the bond |
for them until after 20 days; IL pay
rlents were made in full at that time
they would receive their bond sub
s"ribed for. So the idea got abroad
that II the credit which the bank
would furnish was to give the needed
lid It would have to be liquidated in
81 days. i
Banks Aid Small Buyers.
It was not explained to the hear
Srs. that II anvone were unable
fully to liquidate his obligations
to rhe banks. then the loan would
b., extended another ninety days, /
and II Al the end of that time there
still remained payments to be made
the hank would carry the bond. and !
would even do so for a fourth time.
In other words, instead Of ninety
days it Was possible to pay for the
bond in a year.
No systematic effort was made |
to get tn6t ides into the heads of
the crowds, and the failure to do
that undoubtedly explains why
there was an alarming falling off
Of small subscriptions. Then again
those who purchased bonds of the
earlier issues upon the agreement
to pay a dollar a week were in
formed that they would have t.
pay two dollars. and, there were
could spare one dollar a week they
could not spare two.
The prevalence Of the grippe un-
douotedly caused a part of the fall
ing off. Then too. the greaI cor
portations, and those who are for
tunate enough TO receive large in
comes hesitated. because they did
not know how much would be ex-
acted OF them in the form of taxa
ton. II the revenue bill. now he
fore the Senate. had been enacted
into law before the liberty loan
campaign began. II would have been
easy for the corporations. and in
1ividuals. who have large incomez
to make computations. which VIOLA
show them how much in the fSrm
Of taxes would be taken from them,
and how much would be left which
would enable them to buy liberty
bonds. Some of the authorities
have felt that three weeks was too
short a time to market with theI
American people $4,000, ,000. 900 in
bonds.
Magnitude Staggering.
Then too there is the certainty, that
in the spring Secretary McAdoo will /
again call upon the American people
for subscriptions TO 3 loan which NAV
be as much perhaps as 1900. 900 900
u that should be done then in the
course Of year or a little over. the
American people will have been asked
oy the government to buy 5000, ooo,-
90 in bonds
The best authorities are certain that
4