The Washington herald., 1918-05-11
WARLOAN TALK
FROM n. Y. CITY
Holland Says Prospective
Tax Payments Keep Down
Subscriptions.

them has caused some dlsappolnt-
ment. When the subscriptions be-
gan the prediction was made that
New York City would oyersubscribe
its allotment OF ssoo,000.o00 by from
$4,000, 900 to $60o,o0e,ooo. That
estimate was based upon the return
made by New York City to the Sec
ond Liberty, Loan appeal.
It appears to be the common
opinion with those who led the
great salesmanship campaign for
the liberty bonds that had it not
been for the fact that many mil
lions must be paid into the United
states treasury in the form of taxes
in June, these millions coming from
New York City. the aggregate sub
seriptions for the Third Liberty
Loan for this district would have
been approximately s1.5o0. 900. 900.
Those who have scrutiniZed the
subscriptions made by and through
the New York City banks have not
failed to observe that almost all OF
the banks fell below the subscrip-
tlons made by and through them TO
the Second Liberty Loan. A super
haial reading Of these figures would
raise the suspicion that the New
York banks were not able to match,
relatively or proportionately. insti-
tutions in other parts Of the coun-
try. But these banks are preparing.
or have already prepared. to meet
the demands which are to be made
upon them within the next four
weeks for the funds with which to
pay the government taxes.
Many of the great industries of
the United States, the names Of
which appeared in the First and
Second Liberty Loans, appear. so
far as publication Is concerned. to
have subscribed little or nothing to
the Third Loan. They did. how
ever, subscribe IN as large an
amount as was deemed expedient
in view Of taxation, but they made
their subscriptions through the
banks and their. names were not
made public. The corporations have
been compelled to put aside large
sums or to negotiate with the
banks for large sums whereby they
can pay their taxes. Presumably
not far from one-half OF the aggre-
gate taxes the government will re-
ceive in June will be paid by or
through New York City. Almost
all the large corporations maintain
Offices IN Ne" anu NDCAA
lations with the banks OF New York
city are both of magnitude and in
innate. Nevertheless. the money
they will pay in the form Of taxes
is to come from earnings which
they have gained for their indus
tries in all parts of the country
and in their dealings with the gov
eminent
The InstalIment Plan
When the net liberty loan Is Of
fered the presumption is that a
change in installment plan methods
will be adopted by the government
authorities. With $1,000, 100000 in
the Federal Treasury at the close
of the fscal year and with large
amounts coming in through the
sale OF thrift and war savings
stamps. which curiously enough
have not effected postal savings.
the government will be in a posi-
tfon to carry on its affairs Of bill
lions until late in the fall. at time
when the farmers will have receiv-
ed the hundreds of millions which
in the aggregate will be paid to
them for their crops. Therefore the
next appeal to the American peo-
pie IOE lOdh Is nut " NC
made until after the heavy frost
has come.
In the campaign for the sale of
Third Liberty bonds, the greatest
saIesmanship campaign ever known,
the statesmen observed that many
persons Of small means, wage earners
especially, were anxious to buy bonds
upon the instaIlment plan, almost all
Of them fifty dollar bonds. But out
side Of New York city, at least in
some places, they were unable to do
this unless they agreed to pay to
the banks four dollars for the first
instaIlment and four dollars a week
for each succeeding installment.
whereas for a fifty dollar bond the
government rules call for a first IN
staIlment Of two dollars and success
siYe weekly installments Of one dol
lar. so that it would be possible in
this way to secure at the end of the
year a fifty dollar bond. Wage earn
ers could not afford to pay at the
rate Of four dollars o week INSTALL
nlents. On the other hand some, IL
not many. banks refused to take sub
Scriptions unless payments Of this
kind were made. For explanation the
bank officers said that the banks lost
money when the first and second
liberty installment loans were Heated
because the interest they were COM
PEELED to pay for borrowed money
was greater than the interest they
received for carrying the bonds. Many
hundreds, perhaps thousands, of in
dividual investors who are wage
earners would have subscribed for q
fifty dollar bond II they were per-
mitted to pay q dollar Q week. This
has been called to the attention Of
the government and the presumption
is that when the fourth Liberty Loan
is offered arrangements will be made
similar to those which were estab-
Iished in New York city whereby It
will be possible for any wage-earner
anywhere in the United States to Sc
cure q fifty dollar bond II he pays
two dollars down and a dollar a week
thereafter.
A Gratifying Feature.
All Of those who were leaders in
the selling campaign speak with en-
thusiasm Of the demonstration made
in the campaign Of the past four
weeks that the plain citizens of the
United States. the everyday workers,
have at last learned the lesson which
good investment teaches, SO that it
probably will be established, when no
longer is there any necessity for fioat-
ing liberty loans. that the American
people have at last bect me an invest
ing people, although heretofore they
have had no other method of caring
for their savings than by depositing
them in savings banks or within the
past four or ive years in the postal
savings system. or else by boarding.
The oversubscription to the 1900, 900, 900
- Cfa