The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-13
Men Facing Hardest
of Financial Prob
lens and Great
Labor Shortage Re-
spond Nobly

VI iliC lOdu W tho
banks will charge from per cent. to 6
per cent, which, when you deduct the in
terest rate of the coupon, will be costing
the borrower only quarters Of per
cent to Ia per cent. and will be netting
the bank barely enough TO cover its over
head of extra bookkeeping.
When the first two Liberty Loans were
launched there was some tremor among
the little banks lest the Withdrawals CT
sayings to buy bonds and the concentra-
ton of the proceeds from the sale OF the
bonds in big banks would leave the little
fellows shy on deposits, but this fear has
proved more psychological than real. 1t
Is now matter of actual record IN Liberty
Loans that the deposits withdrawn to buy
Liberty bonds come back through natural
circulation TO the same banks within three
months.
How the Money Passes Around.
The process put in A c terms is this:
You take $500 of your savings and
buy Liberty bonds. This money goes to
your Federal Reserve district. 1t then goes
out to the local banks to pay for war pur-
chases, in wages, munitions, food. In
exactly three months it is back on deposit
again from wage earners, factory owners,
food producers.
The only hitch in this proceeding is an
other story, and it is big one with some
people, as sore as a stubbed toe or thumb
out of joint. Owing to red tape, which
in this case really means the tremendous
pressure on Government functions, while
wages are always paid promptly, credits
for big war purchases ordnance, ship
plants, airplane advanees-are not paid
promptly.
/ know country hay dealers for the
army whose deferred payments have
nearly tied them in bowknots, and l know
big war factory companies who were to
get advance payments for the expansion
of their plants to be charged against
future delivery of war goods. and who
made their spendings between July OF
1917 and January of 1918, and have not
to this day got 25 per cent. Of the adj
vance. This has thrown heavy burden
of financing on local banks, but 1t Is In
evitable in the pressure of war.
The slogan has been, double the
Third! Within a short distance of where
I write, on the shores of Lake Erie, is
farming district to which have been as
signed 1000 of Liberty bonds. Its sub
scriptions three days after the drive opened
totaled $500, 000-nearly three times its
quota. Is the farmer buying Liberty
bondsi Does the question need an an
swerf
The Tn, ee Layers of Society.
One farm bond worker put the case
very neatly in these words: sour popu-
lation in this country is made up Of three
well defined layers. At the bottom is the
layer of those who barely get food and
roof over their heads-chiefy owing to
their own fault. At the top is the layer
of those with unearned ineomes-more
than they can ever spend. Between is the
big layer that is the backbone Of our coun-
try, those who have all they need, spend
freely and save some.
'sNow the soldier-son of poor man and
son of capitalist-has voluntarily gone
down into the bottom layer to save de-
mocracy He is getting practically what
is only bare living, food and clothes and
a roof. He may be baker, the bakers
son, or Morgan's son, or Morgan's door
keepers SON. All he asks is food, clothing,
a roof; and he will lay down his life for
democracy.
at is written in the scrolls of heaven
that that is what our soldier boy is doing.
All right; do you think the other two lay
ers of life here are going to do anything
less?
"They are saying, we, too, will give
everything, down to a roof, food and cloth
ing, to win this war That is why the
Fourth Loan is going over the top with
whoop. That is why every loan will go
ovpr the ron with accelerated SDeed until