The sun., 1918-02-07
M'AD00 OFFERS
THREE BILLION
N0T'ES.TOBANKS
Secretary Proposes 80 Days
Issue and Pfans Delay Of
New Liberty Loan.
APRIL Is EARLIEST DATE
Garfield's Order Prompts Post
ponement Until Industries
Again Speed Up.


WASHINGTON, Feb. s.-rhs third Lib.
erty Loan viii b postponed until April
is or later Il new short term financing
plan announced to-day BY secrstary Nc
Adoo meets with the support and CO.
operation Of the banks OF the country.
This plan, which has been kept close
secret At the Treasury Department. pro-
vides for the Issuance Of $4,000. 900
Of Treasury certificates Of indebtedness
in semi-monthly instalments. and the
banks are asked to pledge in advancs
that they viii set aside each week per
cent. Of their gross resources for invest.
ment in these csrtincatss
A telegram was sent to-day BY Mr..
McAdoo to every hank and trust COM
pany in the country. asking them to
agree to these terms and appealing to
them to do % as . supreme duty Of
patriotism
The plan announced tonight provides
for the issuance OF $500. 100000 inscer-
tincates every two weeks. the banks in
vesting in them In each issue At least
per cent. Of their gross resources. the
per cent Of the gross resourcss
1T II contemplated II each bank win
do its SHARE" said Mr.. NcAdoo's an
nouncemsnt. that - maximum 10 per
cent. Of the gross resources Of the banks.
or apSroximatsiy $4,000. .0oo.oee. Will b
raised betwssn now pnd the next Lib
sfty Leeu. peoviding N b lsseeayy -
eau upon IL taaks - that 'eatsatr
FarSt lastslnsaA JAae NeahE, g, >
Tho frst ihstaimsnt OF the nsw csrs'
uncAtes, Amounting to $500. o.0eo, Aia
ready has been offered through Federal
Reserve baniss. These certificates are to
mature on May .. are offered at par and
bear interest at I per cent from Feb
ruary 3. Only the terms Of this install.
ment are fixed as yet.
Although not stated in the announce
ment, Secretary McAdoo admitted to-
night in. response to questions that he
hoped to defer the next Liberty Loan At
least Until April l6.
"Of course" he said. this 10 condi-
tional upon the banks Of the country &C.
ceptinE this plan. have every reason
to believe that they viii respond pa
triotically to this appeal. and that II
will be very successful a. all other H.
sues Of these certificates have bsen."
WuCN dbACu nc WOu" 0IV0 uIo IV&~
sons for seeking by this means TO post
pone the third Liberty Loan. which Il
had been expected up to this time would
be open by March ! At the latest. Mr..
McAdoo laughinGiy remarked "well, the
weather has been bad and this certainly
In not good kind Of year to reach the
people as widely a. would be required"
Although Mr.. McAdoo refused to dis
cuss tho matter further It 10 known that
the reason back Of to-day's announce
ment lies In the uncertainty which has
existed here for some weeks now ~ to
the ability at this time to carry on q
successful campaign for the new loan.
E1ects Of Garaela's Orders.
The country. It has been shown, has
been rather depressed by bad weather
conditions and thSir attendant evils. The
industrial suspension order was one OF
those. showing that this has resulted In
large losses In wages In some OF the In
dustrial parts Of the country depended
upon to subscribe heavily to tho Liberty
Loan. $50 ..
1t was the opinion Of some bankers
who had been studying these conditions
that to sttempt q new Liberty Loan In
the face of present conditions would be
most unwise. Mr.. McAdoo. It 10 known.
has been thoroughly cosnisant Of these
effects Of the Garfield order and It has
been one Of the reasons why he has
been trying In the last week to have
further heatless Mondays called of. But
In this he has not been successful.
BY April It Ia the expectation that
the country will be going full speed
ahead again. that the tremendous ex-
penditures now being made will have
produced a renewed feeling Of pros
perity In the Industrial section and that
with American troops In action ON tho
French front the nations patriotism
will be at fever heat.
3. It will be the plan to make one smash
Ing drive for the new loan. The banks
will Of course turn In the certificates
they have absorbed in the meantime In
payment for subscriptions to the loan.
Another advantage OF the plan Mr.. Nc
Adoo pointed. out to-day was that by
CoStisued on Ftfth Page.