Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-10-05
GOSSIP OF
THE STREET
MOST OF LOAN
ALREADY SPENT
Banker Says Public Should Learn
Necessity of Aiding De-
N spite Peace

~ Necessity oil Aidine Dt-
spite Peace
The fear OF too much optimism cor
cerning an early termination cf the war.
coupled with the disorganization OF weh-
thought out and matured plans Tor me
" J.iberty Loan drive cy the Sparls" h,
nuenxa epidemic were the rrlhe'pal
topics for discussion N banks, 'roNefS
of1ees and the street YESTERDAY
X vi connection with tie hdrm which
could be occasloncd hy too much opium
ism concerning the end cr the war. a
weil-known banker remarked that li is
unfortunate that people generally DO not
have n better knowledge o. the "o'I-
fnxs of the Governments financial pIahs.
There should he some way. he said. ot
educating them TO the SIMPLE f0ct ihal
X will be not only necessary 20 raise rae
present loan, hut probably another ana
stiIl another before this country can
( change from war to peace basis.
AS a matter OF fact. the. should ho
/. taught that virtually all the money q"
he raised nv the present loan has Ne
ready been spent that the Government
hod sold TO the banks or ,th" country
over $4,000. 100000 oC certificates of In
debtedness. which aut'c,ns'. the money
20 be raised by the prr-o0, loan. ana
before the canpaig fs uven the Treas
ury will have 10 take the money sub
ecribed for the present loan TO pay of
or redeem these certificates. Then VIII
begin the same old procedure of antici-
pating the next loan by another sale OF
certificates
KuoN's Bond TaN View
The statemen' said 20 uave been made
hy Senator Knox. o. Pennsylvania. .u
support of the contention jnHt the tD'-
ernmont has tho mower - tan 'hc inr'r"
from state bonds. was .ha suhi"'' o..
some comment iu tho lrud and iuNc e.
n,cnt houses cs'c"i1y. and the pre-
vailing impression Was that he had tie
hest of the argument u has morally
been advanced that the exercise Of the
power by the Federal Government 10 tay
so-calied exempt municipal and state
bonds. as proposed i'm the revenue bill,
would be unconstitutional
Senator Knoy sayS;
The power oc the states TO make
wealth free from national taxation is.
we might a,nos, SAY, tho pov.r TO de-
stroy the nation. For. IS not the power
to Withdraw from the Federal taNatlon
the capita Of the country by means Of
tax-immune bonds as mucn menace
70 the nation as is the nations mower
to tax lncome from such bonds i'm tho
holders hands a menace tp the states"
To contend that there Is any
principle IN our Constitution that per-
mits any form Of wealth 20 escape tax
alton. If its taxation is necessary TO
carry on defensive war. H. to con-
tend that the Constitution contains a
principle more sacred than the nation
Itself, a principle not Of ethics. but Of
law and ono that must be preserved
even though the nation perish"
Bond Market Feature
international Mercantile Marine sink
ing fund 6s Were the feature OF the
be nd market again Yesterday. quotations
rising from around 9S1. 10 well above
par. This activity was accompanied hv
further reports Of continued progress Iu
connection with the sale # the COM
pany's British tonnage to an English
syndicate. Some were at a loss to uu-
derstand the cause for this pronounced
movement. as the provisions OF the plau
do not call for retirement OF the out
standing bonds at this time
Public Utility Securities have been
more popular Of late. presumably he
cause of the general feeling that peace
" net far off The banking community.
however. is advising against too great
optimism in this respect This. however.
has rot prevented many from purchas-
Ing what they regard as prime peace in
vestments
Liberty Bonds We're unusually active
and hrm, the "a 5 holding al close 20
". There was continued heavy buying
of the 4i4s by those desiring TO bring
their holdings up to $4,000 the amount
winch holders may retain If they have
subscribed TO 100000 Of the new AIS.
Confidence was expressed today in the
trade that there viii be liberal buying Of
this character during the nest Two weeks
IN which the Liberty loan campaign is
on.
Foreign Governments continued iba...
recent activity and strength. all issues
holding al levels Ground those obtaining
a. the close Thursday, with slme ad-
vanees being recorded
Short term notes were active i'm some
departments. The Russian issues were
nrrn with tendency toward higher
levels Buying of these issues Of late
mas been of spectacular character,
which has resulted in advancing quota
tons several points above the levels Of
the present year
American Telephone convertible note,
we're active and firm quo atiuus rang
ing from 9Sl4 20 9s@,
After-war Trade
There is beginning to be considerable
interest Shown in the financial district
IN after-the-war trade, especially iu view
OF the effect II may have on certain
securities
prominent banker ,u snea'rag or
the present activity ard increase In
puotations for Russ an bonds said thar
~ lar as Russia is concerned IFS for
eisn trade will be entirely Different
from what it was bcfor. tha war arg
when stable Goverunlurt iS oe-abl'ghrI
IN that country-whicl. D.. gr-i.ina.as
viii not be long delayed---thp Government
VIII have good deal to s4v fr the p.
ersanization where formerly -f-,yafa
organization had everything It's own
way He believes the new Goyaru,uau.
70 be established in Russia wiu set
( about the development of an export
pusiness i'm manufactured products ia
replace the former export trade IN agr'-
cultural and raw materials Possibly
Tor beginning an export business will
De Attempted In meat and dairy pro-
ducts he remarked.
" A prominent investmeu. banker also
called attention 10 the literature which
4 Is being sent out by financial concerns
recently All take up tine subject OF
trade after the war. so that as he
renaTked. II the United ates viii heed
the warnings 10 prepare for trade after
the war as advocated by intsa articles
We need not he accused by the world