New Britain herald., 1918-01-26
Henry Cleus
 Weekly Letter
Especial to the Herald)

| operations are deadlocked by unfaVor- 1 able weather conditions. There ls' however, a growing belief that peace 1 is not far distant. This belief is seem- l ingly based upon the signs of break down in Austria and growing diseon- 1 tent in Germany. At this writing it is l impossible to form any reliable conclu- ] sions; and the various rumors should l be accepted with reserve owing to the 1 difficulty of securing reliable informa- 1 ton. The German Chancellor's peace message revealed a desire for peace, but was so evasive and impossible Ill l it terms, as to be disappointing. some concessions, however, were n1ade ana in due season others may follow.
 The President is now coming in TOT some criticism in connection with 1 progress of the war. With the pollti-
 cal and personal aspects of such crit | icism, these financial advices have not l the slightest concern. History warns us that all governments pass through ] such crises; especially in tho early i stages of war, and it was only pa l triotic desire not to embarrass the Ad- l ministration that prevented an earlier l outbreak. Both Washington and Lin 1 coin had to endure bitter hostility 1 during the great crises which they l weathered successfully. fMr. Wilson 1 will probably have to do likewise. The great leaders ill France and Britain ] have passed through such attacks with l advantage, and so probably shall we; though it is unfortunate that party politics or personal issues should have been allowed to intrude. The Cham Derlain episode will undoubtedly have the effect of speeding up and increas- ing the efficiency of all war activities. Whatever criticisms may have been made concerning the Presidents ap- pointm ents and his policies in domes- tic affairs-and these are not infre- quent-his foreign policies have been
 singularly sane, just and high-minded No man has more clearly spoken the mind of the American people and
 their attitude toward Germany than
 Mir. Wilson.
 We are approaching the period for 9
 new Government loan, preparations
 for which are already well advauceG.
 Secretary McAdoo has intimated that
 the huge sum of $10, ,o00, 900, ,OoO will
 he needed for war and domestic ex-
 penses between now and June 30. This
 is 8 staggering amount but whatever
 portion is issued as a loan it will doubt
 less be liberally taken, necessity plus
 patriotism insuring it's success. Not
 less than s3,00O,000, 900 of this sum
 will be raised by taxes, so that the
 exact amount to be issued in bonds is
 not yet definitely known. Of course
 this means that the country will have
 practically no surplus savings for new
 enterprises for some time to come: and
 the Government is already considering
 steps towards discouraging invest
 naents in other directions; this bcins
 in line with the policy of the British
 Governm ent adopted early in the war.
 What the rate will be is not yet di
 vulged. Sound banking would dictate
 either a liberal rate or slight dis
 count in view of the prices at which
 the two previous loans are now selling. Such a policy would encourage 8 wid- CT public distribution than special
 privileges, which would appeal chiefly
 to big investors who would turn over @ large proportion as collateral to the
 banks which already hold large sums of these bonds. Or if such terms are not practicable, then I would renew my previous suggestion of 3.65 per cent three-year Treasury note bearing
 interest at the rate of l cent a day,
 such notes. convertible into per cent. at maturity.
 Popular public opinion is, of course, adverse to high interest rates; but, if
 guided by disinterested advisers, thF
 public would probably moderate it's
 objection. The loan would certainly
 be more popular if the direct return
 were sufficiently liberal; and there are
 many sound reasons, political and economic for securing as W1Ge and as
 permanent a subscription as possible.
 It is certainly good policy to nave these bonds widely scattered and in
 he hands of the general pubic, rather
 than concentrated in the hands of
 large investors and big financial ln- stitutions: although in any event the latter can be depended upon for dolns their full share in supporting the loan. Jt is both symptomatlc and suggestive that some of our leading savings banks are considering the wisdom Of ad- l vancing their interest rates in order 1 to prevent the lowering of their de- l posite. which thus far have not been 1 seriously affected by the Liberty ] Loans. If the safest and strongest ! financial institutions in the country 1 rccogniZe the situation by paying higher rates, there is no reason why the government should not raise it's offer; net to the extent of conn peting l with the savings banks which for ob- l vious reasons is undesirable, but to meet the conditions of supply and de- mand Inducements Of this sort would unquestionably make the loan 8 big success and hasten a victorious con- clusion of the war. The amount of tho loan proposed is large; and would l prove our determination to push the war. It is not beyond our capacity. and should not cause the slightest Nn- easiness. This sum does not repre- sent the losses of the war to the United States. A consid derable portion of this S10 900, ,0oo, 900 will be allotted to foreign governments and spent in