The Washington herald., 1918-10-26
CREDIT OF us.
is MOBILIZED
II Billion IN Bonds Held by
25,000,000 People,
Says Holland.


ing by four or FIVE men who in the
past have had experience upon a large
scale. in important financing and in
the movements of the financial dis
trtct so that they could find out II
possible how many Individual holders
OF bonds OF all descriptions there were
In the United States prior to the out
break OF the European war or at
least until England and France foated
large blocks OF bonds in this country.
For there appears to be increasing In
terest in the estimate OF the aggregate
number of Individual subscriptions 70
the bonds OF the Fourth Liberty Loan
More and more there seems TO De
understanding OF the great Importance
which the increase I'm the number OF
individual subscriptions to the bond
offerings suggests.
II was not possible to get a wholly
accurate estimate Of the number or
individual bond holders in the United
States as that was three or four years
ago. But Il was discovered that an
excellent estimate was made by good
authority that there were not more
than 100000 Individual holders OF
bonds in this country perhaps as late
as 1916. certainly as recently as 1917
Now from 200 coo to 2Oo0.OO0 indi-
viduals IN the United States have In
vested in bonds, and the increase in
the number since the First Liberty
Loan was hoated has been one OF the
most astounding features associated
with the marketing OF these bonds.
Savings Not Affected.
II was discovered that in the First
Liberty Loan the number OF individ-
Ual Subscribers was 4.7OO,o00. That was
looked uDon as a remarkable number
OF individual purchases. II was only
fNN beginning. however. The Third
liberty Loan was taken by approx
rrRteIy u O00. 900 individuals including,
Of course, corporations and banks.
Vow rNe Fourth Liberty Loan has
bon absorbed by at least 22,OcO. CO.,
end II may be found when complete
r~NNrts are received that the total is
p HOOOoo or even more.
So II was said this morning that
the marketing by the government with
The people Of these billions Of liberty
bonds and the future marketing which
NAV within year bring the total up
IN s24. M 600. represents a wonder
ful mobiliza ton Of credit and re-
sources which today are reflected by
$1,000, OOc.o0O of government bonds
which are held by .. 100000 individuals.
Inquiry was made this morning OF
several of the managers of the saw
ings banks for the purpose of learn
ing whether or not the latest sub
scription had in any noticeable way
depleted savings banks deposits. 1t
seems not to have done so, thereby
Indicating that for the most part
those who bought liberty bonds either
utilized recent savings or made use
~ he 80 fv
the bank. There appears to have been
an increase in postal savings. Some
slackening IN the sale OF thrift and
war savings stamps was observed
while the campaign for marketing the
Fourth Liberty Loan was in progress.
This, however. was inevitable. and is
probably only temporary.
Farm. Oner Investment
This mobilization OF American
credit and the utilization Of recent
savings have created an enormous
amount Of prime securities; prime
because behind them stands the
United States. The probabilities are
N the view taken by those who have
bsen for several days discussing this
matter he correct. that the market
ing OF these billions OF bonds with
.. 10000 individuals will make it
inevitable that after the war is over
and there Is no longer need for the
government to ask the people for
further loans. there be very heavy
investment in high-grsde securities. .
bonds and stocks of all kinds. The /.
American people have now learned
how to make investments and why /
action of this kind is wise
Therefore. IL is presumed that
having been thus taught the people
will be we'll disposed hereafter to-
wards investment OF some part of
their savings in securities new and
old. They can utilize these bonds
If there be occasion for so doing
as security for loans with which to
make investment but the chances
are that the great body of Ameri-
can people will prefer to make in
yestment in securities OF their new
savings than to obtain funds for
that purpose by pledging. their
United States bonds
There should be very great on
portunity when peace comes for in
vestment in farm lands, in real
estate. in building operations and
probably In mining, certainly in i'm
proyement of railroad properties.
Results Are Astonishing.
The best authorities say that these
nOerty ponds represent a wonderful
md sudden accumulation of new capi- !
tal. That capital must be EMPLOYED /
n remunerative undertakings, for ,
.ign commerce, the development of |
sur farm lands, the increase of our
mining activities and the expansion /
and Improvement OF our railroads
And 1t is one Of the unexpected and
astonishing effects OF the war that
he entire United States has within a
rear and a half so mobilized it's saw
ngs and its income as to make II
possible to create new CAPITAL. today
represented by E2,000oOOOOO OF the
best grade of negotiable securities.
and possibly within another year Of /
an additional $1,000 10000, making
se4. 1000 OOO. 600 in all.
The new securities thus obtained /
will be equal to 80 per cent OF the ag-
:regate volume of securities as that
vas before the European war broke |
Dut They will be found to be in ex-
sess OF the aggregate OF railroad Sc
.urities. The railroads were three !
'ourths of a century in marketing
their securities while the mobilfza-
ion in a year and a half Of savings .
md income made By the people of |
he United states has resulted in new
securities that are in excess of all |
he railroad securities. Yet railroad .
iecurities at the beginning of the war
we're often spoken Of as the largest
aggregate OF securities ever marketed |
with the American people.