The Washington herald., 1918-04-15
STEEL STAFF
BUYING BONDS
Big Corporation Employees
Subscribe Largely to Lib
ertyLoan, Holland Tells.


When announcement was made
that the United States Steel Cor
poration had subscribed thirty-1ye
million dollars to the Third Liberty
Loan, IL was also said that all but
ten million OF this sum would go
into the corporations treasury. The
employees OF the corporation will
have opportunity to subscribe for
ten millions of these bonds and to
pay for them on the installment
plan. This subscription of thirty
nVe millions does not make the
United States Steel Corporation
poorer by q single cent. The twenty
nve millions which will be retained
in the treasury represent invest
ment. The ten millions which the
employees are to buy on the in
stallment plan represent an advance
on the part OF the corporation
whereby the purchase OF bonds by
the employees may be facilitated
In the month OF January the en-
ployes of the corporation sub
scribed for an aggregate of nine
millions of the stock of the steel
corporation. They did this in a
month when. by reason of condi-
tons which the corporation could
not control, operation was not at
top speed. there being necessarily
some suspension of wages. So ii
is believed that, as readily as the
employees subscribed for nine mill
lions OF the stock of the steel cor
pOration in January. they will take
advantage OF the opportunity to
subscribe for ten millions of lib
erty bonds and to pay for them out
of savings.
One feature associated with the cam
paign for q subscription by the people
in the aggregate of $3,O00,OO0.O00 that
has been especially notable in the first
week Of the campaign is the fact that
now there is full understanding of the
meaning of this transaction so far as
bthe purchase OF the bonds is con-
kccrned. When the First Liberty Loan
was offered there prevailed in many
parts Of the country the belief that
the people were asked to give outright
S2.OOO.OOe.OOO to the government.
1t seemed to be almost impossible
TO persuade the people in some dis
tricts that they were not giving one
cent to the government. but were in
stead lending their money upon the
80 oNNAAALg III AAAG "Ollu anu "NtC
to receive for that service as good a
rate of interest as the average savings
banks pay upon deposits.
Lending Not Giving.
Even while the campaign for the
Second Liberty Loan was in progress
much persuasion and exposition were
necessary in order to show many peo-
pie that IL they subscribed for a lib
erty bond they were simply transfer
ring their money from their pockets
or from their bank accounts to the
government and were receiving in rec
ognition of this transaction an en-
graved pledge by the government that
at a certain time the money would be
returned to them and meantime they
would be paid interest upon the loan.
Now reports come from many
parts of the country that there is
.herfect understanding Of the fact
that a subscription to a liberty
bond means an investment, behind
which stands the credit. faith and
r"sourCes Of the United States. For
Tat reason it will probably be
easier to persuade people in those
parts Of the country where liberty
loan subscriptions were with some
difficulty secured in the spring and
all Of last year to lend their money
{" the government and to take in
return the evidence of that loan
which Is called a liberty bond.
Many are to be the opportunities
for giving outright. Several hun
dred millions have already been
received as free Offering Of the
american people for various war
purposes. Soon after the Third
Liberty Loan subscriptions end the
people will have opportunity to
give outright at least 100000, 900
TO the Red Cross. A day or two
before Henry P. Dawson sailed for
Europe in March, he was asked IL
the Red Cross would make appeal
to the American people for another
gift of money. In reply Mr.. Davi-
son said that soon after the Third
Liberty Loan is completed the Red
Cross would ask the American
people for a gift of money in the
aggregate OF 100000. 900. and the
Red Cross would not put a stop
to the gifts in case the amount Of
kered within the time fixed ex-
Ieeded 100000. Mr.. Dawson
felt sure that these millions would
be Cheerfully given.
Nfen the lnlrQ LlDeTty Loan was un-
der consideration. the conjectives were
many respecting the ability or will
inGness OF the great corporations 10
subscribe to the loan proportionately
as large an amount as was subscribed
by them to the first and second loans.
This doubt was occasioned by ths GER
tainty that the great corporations
would be, in the spring Of this year.
compelled to pay in the aggregate
hundreds of millions of dollars In the
form OF taxes. For that reason their
ability to make subscriptions to the
Third Liberty Loan might be curtailed.
Undoubtedly there would be curtail-
ment OF capacity were It not for the
fact that the corporations may utilize
these bonds for maintaining their sur
pIuses or for securing excellent in
vestment. The steel corporation, for
instance, could not at this time make
a better investment Of some part OF
its earnings than by buying twenty
five millions of liberty bonds. That
is true Of other corporations. for 1t is
observed that many OF the corpora
tions especially in the East (for at this
time not much has been learned re-
specting corporate subscriptions to the
loan In other parts OF the country
are making investment in liberty