The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1918-02-08
Three Billion Dollars to Be
Raised on Certificates of
Indebtedness.
IN ADVANCE OF THE LOAN
Third Liberty Loan Campaign
Will Be Launched Probably
in April When Wide Distribu-
ton Will Be Made.

Washington, Feb. 7.-Three bill
Ion dollars will be raised in ad-
vance of the third Liberty loan,
which probably will be launched in
April by sale of certificates of in
debtedness under a plan looking to
purchase of notes by every bank.
The first issue will be OF $780,
100000 or more every two weeks
until the $4,000, 100000 is reached
by the middle of March.
Every bank and trust company is
asked to set aside l per cent of it's
resources for investment in the GER
tificates.
The first of the $500, 900, 900 GER
tifcate issues was announced to-
night. They will bear the same
rate of interest and will be dated
Febraury IS. The subscription of
this and other issues will be receiy-
ed eventually in payment of Liberty
loan receipts. The secretary's plan
calls virtually for the loan by banks.
big and little, of the S3,00O,OOO. 900
aggregate of certificates issued be-
fore the real Liberty loan campaign
starts. BY this means, that sum
would be gathered in the Liberty
loan and the difference between that
sum and the total of the Liberty
loan would have to come largely
from private subscribers. About
half of the first loan was raised in
advance by certificate sales and
about two-thirds of the second loan.
Many Already Sold.
Already s400,000,00O worth of
| certificates of Indebtedness have
been sold in anticipation of the third
loan and about $1,145, 1000. 900 GER
titicates are outstanding to be re-
ceived in payment of income and ex-
cess profits taxes by next June.
Secretary McAdoos appeal to
banks to set aside in installments 10
per cent of their resources was ur-
gent
We are approaching critical
test on the battle fronts of Europe "
| = SdNH Ddnk. the
banks, which are the first line of
hnancial defense, fail to support the
government fully in it's necessary
operations they shall impern Amer
ica's army and Americas safetv"
The secretary also pleaded for
economy of credits by banks and
promotion of campaigns of economy
among the bank patrons.
There is steady growth in the
movement for economy" his mes
sage said. Banks should be able
| by participating in the campaign for
economy which means ECONOMY Of
credit as we'll as economy of eypen-
dltures to teach the customers to
save and accumulate the means TO
LuY government certificates and
bonds. BY this method a distribn-
ton of treasury certificates should
become possible which will relieve
the subscribing banks of AT least
part of their purchases and furnish
the means of making payments for
the next issue of Liberty bonds
without undue strain"
Waits Favorable Time.
Financial reasons for the plan
were explained as follows:
i desire to postpone the next Lib
erty loan until conditions will in
sure vide distribution of the bonds
throughout the country. / request
board of directors or trustees of
each bank and trust company to re-
serve each week out of its loanable
FUNDS for the use of the government
OF the United States about l per
cent OF the gross resources of their
institution not to exceed in the ag-
gregate 10 per cent and to invest
that amount in treasury certificates
of Indebtedness
The huge funds thus gathered to
government account will not pile I'm
the treasury but will remain largely
In banks designated as government
repositories subject to draft by the
treasury. In this way the $1,000
100000 can be accumulated ready
for use as needed for big expendi-
lures.