Milford chronicle., 1918-12-27
FIFTH LOAN HANDICAPS

In the spring, probably in April, the
Fifth Liberty Loan will be offered tC
the public for sale. According to Sec
retary McAdoo it viii amount to five
billions and possibly to five and a hall
billions. None of the previous Liberty
Loans has been sold under the ad-
verse conditions that will prevail when
the next issue of bonds is placed on
! the market We hope the sale will be
success, and that the issue will be
oversubscribed like its predecessors.
But the danger is great that the full
amount will not be absorbed by the
public, and that the balance will have
to be taken by the banks. thus con-
stitutng a practical failure. The Re
publican party Will then be in power
i'm Congress and engaged in making
a record upon which it will ge before
the people in 1920 for further endorse
ment. The temptation will be great
for the Democrats, in case of the fail
ure of the Fifth Liberty Loan. to bring
a direct charge against the Republi-
cans of incompetence to finance the
country while they are i'm power. OF
course such accusation, if made, would
be a gross libel. but the country should
inform itself of the conditions that
Will prevail in the spring in order
that the people may be forearmed
against any insidious attacks of the
Democrats.
The last issue of bonds was for
S6,O0O,O 600 900 and occurred at a time
our soldiers We're engaged in some
of the blOodiest-and most momentous
battles i'm the entire war. Income and
excess profits taxes had been paid in
the spring. and ample notice of the
forthcoming bond sale ih the fall had
been given. individuals and big bus
mess alike had had opportunity TO So
arrange their financial resources as
TO subscribe to the limit Of their ability
for the bonds. Conditions could not
nave been more conducive to an over
whelming success for the selling cam
paign. Yet it was only by superhuman
efforts that the amount was exceeded
in the last two days of the sale.
In April next the advantageous con
ditions Of last fall for the selling OF
bonds will have been reversed In the
first place The war is won, and with
its winning the people have lost most
of thar spirit of patriotic sacrifice
mat prompted them to buy the bonds
Of the last issue at par while those
Of former issues were selling at a
substantial discount Federal taxes
viii be but a few weeks ahead. and
-undS to meet them must be set aside
lhe industrial life of the country will
be in the throes of changing from
war to peace basis. with probable
temporary losses i'm ready cash with
which to meet taxes and other obliga-
ions. In spite OF these discouraging
conditions the amount TO be raised has
Ieen set by Mr.. McAdoo at very near {
he figure reached by our last great
Mort.
The outlook for the success of the
oan IS not assuring. II is freely pre-
icted that either the sale will fall y
hort of the allotments or the rate 81 {
interest will have to be materially in {
reased. The Republicans.> as here {
ofore, will do all in their power TO c
insure the subscription of the entire j
ssue. and if their efforts fail il will L
e due to the causes outlined above
nd cannot be legitimently charged to t
ne accession of their party to power u
/ Congress. ii