The states-graphic. (Brownsville, Tenn.) 1???-1984, 1918-02-15
PLANS OF THIRD
LIBERTY LOAN
Include Raising of ss,OOO.OOO,OOo in
Advance by Certificate Sales: Every
Bank is Looked to: Issuance of So.
or More Every Two Weeks.

dollars VIII De ralSel III duNaHSS VI w
third liberty loan, which probably vii
be launched in April, by sale Of Ger
tifcates Of Indebtedness under plar
looking to systematic investment b!
every bank in these short term secur
tiles.
A comprehensive scheme for prepar
ing the way for the third liberty loan
announced by Secretary McAdoo, pro
vides for the issuance Of $500, 100000
or more of these certificates every
two weeks, until the total runs to 3d.
0O0,000,000 by the middle of March
Every national bank, state bank and
trust company is asked to set aside
each week about one per cent of its
gross resources for investment in
these certificates in kilograms sent
out by Mr.. McAdoo.
The first of the $500000,000 certifi-
cate issues under this plan was an
nounced last night. They will bear 4
per cent, the same rate as other re-
cent issues, will be dated February 8
and will mature May g. Subscription
books are to close February Is. The
certificates Of this and other future
issues will be received eventually in
payment of liberty loan receipts.
The secretary's plan calls virtually
for the loan by banks, big and little,
of the three billion dollars aggregate
OF. certificate issues before the real
liberty loan campaign starts. By this
means that sum would be guaranteed
IN the liberty loan drive, and the diff
ference between that sum and the TO-
tai Of the liberty loan would have to
come largely from individual private
81 bscribers. Treasury officials also
heyed that the financial conditions of
the nation can be judged CLOSELY bv the
success met by the advance sale of Ger.
tlfcates. About half Of the first lin
erty loan was raised in advance bv Ger.
tiheate sales and about two-thirds Of
the second loan.
Already $440,OOO,OOO worth of cor.
tlhcates of Indebtedness have bean
sold IN anticipation of the third loan
ana about S1,145, 100000 certificates
are outstanding to be received in nov
menT Of income and excess nrofts
taxes by next June.
Secretary McAdoo's apneal -
banks to set aside in installmonts IN
pe .., gent OF their resources was urgent
we are approaching critical 2 tee t,,''
u oattle fronts of Europe" he hi.
egraphed each bank. "If the 49, ~.
winch are the first line of fnan ,.is
',1sl.sl S fail to support the govern
ment July In its necessary operations
We shajs inana,iI 8 gals, :
Amtrica's safety. | know that i hon" o
'niy to state the case to command az
support of every patriotic banL anJ
This is a supreme dut,, Of
patrlousm. May not count on Won ~
70 your part and to telegraph me inn
will?" peiiSe' that you
The secretary also pleaded for econ
tiy OF credits by banks and prone
'io a.1rS OF economy among bank natrons
mere is a steady growth in tbo
ua?s en- Tor economy" his MESSAGE
saiu Banks should be able to nor
'ieipate IN the campaign of econon,v
whlch means economy of credit ~
wen as economy of expenditure -
Ieach their customers to save and az
oumulate the means to buy govern
ment certificates and bonds. r., tbis
method distribution of treasure CO..
should become possible Mill
viii relieve the subscribing banks = Of
a. least part of their purchases and
furnish the means of making nav
ments Tor the next issue of Gberfv
ponds without undue strain"
FINANCIAL reasons for the plan were
explained as follows:
! desire to postpone the next liner.
" loan until conditions will insure a
wide distribution of the bonds tbrongb
Out the country. l request the board |
u directors or trustees of each bank
ana trust company to reserve each
week out of is loanable funds for tbo
use of the government of the Tnitad
States about one per cent of the gross
resources of their institution NOT 70
exceed IN the aggregate 10 per cent
and to invest that amount in treasure
eertlfcates of Indebtedness"
Certificates issued in the past have
oeen absorbed largely by the bigger i
banks. Secretary Meade now homes /,
70 distribute the burden more equally
over the whole financial fabric of the
country '"e
The huge funds thus gathered r.
government account will not nile nm
IN the treasury but will remain larpelv
m banks designated as government de.
posltories, subject to draft bv the
treasury. IN this way the three hill
hon dollars can be accumulated ready
Tor use as needed for big war expenses
now more chan 81, 100000 a month
without great disturbance of the
banking business.