The Washington herald., 1918-02-07
THIRD LIBERTY
LOAN DELAYED
BY SECRETARY
McAdoo Also Announces
Plan to Raise $500, ,000,-
600 by Certificates.

Secretary Of the Treasury McAdoo
last night announced the postpone
ment OF the Third Liberty loan until
some time in April simultaneously
he told how a series of certificates
OF Indebtedness would be used for
finances in the interim.
The reasons for the deferment of
the loan are understood to have
been;
Unsettled transportation facilities
and weather conditions. which would
hinder operations In the near future:
a desire TO give smaller banking
Institutions an opportunity to aid in
loan operations;
To aid the chances Of the next
loan by widening the interval be-
tween the preceding one and the
next.
Financing In the interval will be
by certificates Of Indebtedness. issued
at intervals of about two weeks. 1t
Is hoped to raise about 100000 900
through this channel.
Wants Banks to Help.
The first such issue was announced
last night II is for 500. .ooo. 900 to ma
ture on May 9. and bearing per
cent interest. Other isSues viii be
for similar amounts. and will be Of
fered at par through Federal Re-
serve Banks.
These certificates will be absorbed
by the next loan. as they are con-
vertible into liberty bonds. They will
be In denominations Of s1,ooo. 5000,
$4,000. and 10000.
Pointing out that we are approach
ing a critical test on the battlefronts
Of Europe" Secretary McAdoo sd-
dressed q telegram to about 2. 900 ma
tional and State banks and trust COM
panies, asking them to set aside / per
cent Of their gross resources each
week to be invested In certificates.
His message follows:
Between now and the time for
making the next Liberty Loan shall
offer for subscription Treasury GER
tihcates of Indebtedness In amounts
of $500 1000 or more every two weeks
] desire to postpone the next Liberty
Loan issue until conditions will in
sure a wide distribution Of the bonds
throughout the country. In order to
| successfully carry through this pro-
gram and to provide for the expendi-
lures for the military cooperation of
! the bankers of the United States and
the allies. 1 must have the whole
hearted cooperation of the bankers
of the United States. and to that end
request the board of directors or
| trustees of each bank and trust COM
pany to reserve each week out of its
| loanable funds for the use of the GOV
ernment OF the United States about 1
per cent Of the gross resources of
their institution, not to exceed in the
aggregate 10 per cent, and to invest
| that amount in Treasury certificates
of Indebtedness.
The exact amount, interest rate,
date and maturity mot exceeding
ninety days. OF each issue of certifi-
Gates will be announced from time TO
time by me through the Federal Re
| serve banks. There Is steady
| growth In the movement for economy.
| Banks should be able by participating
| in the campaign for economy, which
means economy of credit as well as
OF expenditure, to teach their custom
ers to save and accumulate the means
to buy the governments certificates
and bonds. BY this method a dis
tribution of Treasury certificates of
Indebtedness should become possible,
which will relieve the subscribing
1 bdilhS OI AT ledsI part OF their .pur-
| chases and furnish the means Of max
ing payments for the next issue OF
Liberty bonds without undue strain.
Critical Test Approaches.
THE needs of the government for
war are great and imperative. The
resources of the country are ample
to meet these needs If every bank will
do its share. We are approaching a
critical test on the battle fronts of
Europe. Americas sons are now actu-
ally shedding their blood in the
trenches. II the banks, which are the
first line of financial defense, fail to
support the government fully in its
necessary operations We shall imperil
Americas army and Americas safety.
I know have only to state the case
to command the support of every pa
triotic bank and banker. This is a su-
preme duty of patriotism. May
count upon you to do your part and
to telegraph me Immediately that YOU
will? am sending this telegram to
every bank and trust company in the
United States
| (SignedD ''w. G. McADOO."
i Tha health norov,fttaa of pradford