The sun., 1918-07-22

several important issues, one q,
which had been partially underwri,.
ten by the War Finance Corporation
The Bethlehem Steel Corporations
100000 note issue was so uuicllv
absorbed by the public as to indicate
the existence Of a strong potential de.
mand for securities OF this class. II ia
clear that secured corporation note
carrying a valuable conversion prly,.
lege makes a strong appeal, even in a
market that is bidding exceptionally
high rates for temporary accommods.
ton. The immense investments mad.
by the prominent banks--often az.
ceeding the quota fixed by the Govern.
ment-in Treasury certificates OF in.
debtedness paying only Az per cent.
show that there are large funds
awaiting investment in easily market.
able securities having only few
months to run and put out by Dor
rover Of high credit. A good deal o,
this financing remains to be done, and
in cases where the need is vital
enough to merit the approval of the
Federal Reserve Board the probability
is that the securities can be readily
placed. Various towns and munich
palities will probably enter the market
for funds II conditions in the war area
continue favorable. The agitation Of
higher Federal taxes has given rise
to a much broader demand for tax
exempt issues put out by towns and
municipalities which have not over
borrowed in the past.
Mobilization of Labor.
Under the new system Of mobilizing
labor 1t is likely that surplus workers
will be scientifically distributed In tn.
effort to promote the efficiency Of the
essential industries. The American
people have long been negligent in
parcelling out their labor supply, and
the consequence has been that
serious shortage has often developed
in sections Of the country where It
has been highly essential to increase
the industrial output. Under the new
order Of things these abuses will be
remedied, and since skilled workers are
in greater demand than ever before
the country stands to gain heavily by
bility of increasing the supply OF un-
skilled workers, since the Mexican
source Is impracticable and the influx
Of European immigrants has virtually
ceased. But the country is learning u
utilize its man power more skilfuly
as the need becomes more acute and
manufacturers everywhere are intro
ducing labor saving devices in the
effort to make the most of every
worker in their employ. Far reaching
reforms are likely to grow out of these
changes, which have already caused
skilled inventors to devise ingenious
devices that are calculated to make
up for the growing shortage OF human
workers.
Reaching Little Investors.
One of the most significant develop
ments Of the war markets has been
the successful efforts to reach small
investors. These have come ahou,
through the sales OF United States
Government bonds to perhaps sixteen
million investors. the great majority of
whom never knew what a bond looked
like before the First Liberty Loan was
issued fifteen months ago. In conse-
Quence OF these sales the United
States has to-day the largest potential
bond market in the world to appeal e.
since our Government issues are held
now by one in every 6A OF the popu.
lation, whereas even Great Britain
which makes the next best showing
has never succeeded in getting more
than one in Sh of It's population TO
subscribe for a war bond The hes,
that Germany has done has been To-
get one in every 10 of its subjects to
subscribe for a war bond. Poor Aus
tria has received subscriptions from
only one in 80 of her people.
Financing the War.
The war borrowings have broadened
the American bond market. therefore
and given 1t immense potential sup
port. This will be of material assist
ance in financing the restoration OF
peace IL the great corporation borrow
ers have sense enough to conciliate
the little investor just as the Federal
Government has done through its sales
OF baby bonds and Thrift Stamps
Until four years ago none of the great
railroads or Industrial corporations.
except in rare instances. thought ~
issuing 800 bonds, as such small de-
nominations were considered too trou-
blesome for the bankers to handle
But the war financing has changed al
this and the belligerent Government
have found that they cannot finance
the war without the help of the hun
dred dollar investors" whose aGEre-
gate resources are so vastly in excess
OF those represented by the millionsirr
classes as to make the participation
OF very rich men OF little conscquen e
in comparison. The real problem ~
the bond market. therefore is not how
to reach the millionaire investors hvt
how TO get at the savings Of the mil
lions of men and women m his conr-
try who think in hundred rather thar
in thousands.