The Washington herald., 1918-04-16
WOULD INJURE
LIBERTY LOAN
Holland Declares Secret
Propaganda Existed to
Depreciate Bonds.

The management OF the New
York Stock exchange was brought
up short after sndeayoring to dis
cover why and by whom the market
for the liberty bonds has been for
sometime depressed.
It seemed incredible that the
credit Of the United States govern
ment should have been 30 impaired,
notwithstanding the heavy expenses
and the great burden of taxation
entahed by the war. as to make a
quotation of q fraction above
ninety-three for liberty bonds fairly
representative Of the depreciation
in that credit. g..
The managers Of; the stock-ex-
change know that the credit and
resources of the United States are
themselves sufficient 20 maintain the
price of liberty bonds at par or
above. -- -
A little investigation served to
convince the stock exchange man
ayers that the depression in the
ppice Of liberty bonds was due ex-
clusively 20 a systematic and we'll
organized attempt to secure a re-
suit Of that kind. II thereE were
such an attempt 1t was presumably
undertaken by those who have not
the interest of the United States
at heart in this war. But who
were they? Where, did they sell
the bonds? What New York agen-
eies had made these transactions?"
Net Tor Themselves.
A further investigation made 1t
clear that the New York banks or
brokers who sold these bonds while
the price was depreciating, were
not acting for themselves or for
known customers of the banks or
the brokers.
They were, instead. doing no
more than following instructions
which came to them from their Cor
respondents in other parts OF the
country. Little or no evidence could
be obtained, except in few isolated
cases, the original attempts in New
York city purposely to depress the
price Of the liberty bonds.
Il was, however, impracticable-
really impossible-so to carry on an
investigation that It would reach,
banks and correspondents In other
parts Of the country. Presumably;
these banks and correspondents were,'
in transactions of this kind, simply
doing no more than to obey the in
structions OF customers.
But to trace from NsW York City
through banks in other apArts Of the
country or through brokefs. the orig
inaI sellers Of these securities might
be possible for the government it,
self, perhaps, but was not possible
for the management Of the stock
exchange OF New York
A Systematic Attack.
Enough evidence was secured. how
ever, to show that there did exist
a secret and widespread propaganda,
so to call It. well organized. thor
oughly "camouhaged." whose purpose
was to impair the credit OF the United
States and to influence citizens so
that they could not be persuaded to
buy new issues of government bonds
in the fear that although they paid
100 per cent for bonds they would
find that the market for them was
constantly depreciating below par.
In the financial district the i'm
preston now prevails that It will be
impossible to affect to amy apprecia-
ble extent the market price OF the
new issue, which Is to bear four and
one-quarter per cent interest, be-
hind which is to stand a sinking fund
and which IL to be redeemabls in
ten years time.
As an Investment proposition II Is
tempting for those who have money
to invest, and even should there be
q temporary depreciation below par,
the demand for bonds viii soon put
. stop to this even though there be
continued the secret attempt to de-
preciats- The movement has been one
of the most insidious and from one
point OF view. dangerous. which has
been undertaken by any Of those who
are antagonistic to the efforts Of the
government in these days.
Timber and ships
It Il not for lack of natural re-
sources that delay has occurred in the
construction of ships. IL the reports
that have been made public are ac-
curats. The resources are plentiful
and are very near convenient places
for ship construction. That Is true Of
the timber resources of the North
west and It Is also true OF the South
east.
There came to New York this morn
ing from 81. Louis a well authorized
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