Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-07
0O 10 U. s.
Il0MClTYS BANKS
1ilAd AdeIphia Institutions Ex-
pected to Respond to
McAdoo's Request

3 Assuming that response will be made
y the request Of Secretary McAdoo tina,
4U oauk8 and trust companies set aside
~ PER cent Of their resources for the
H UQrcnAse OF q new Issue OF Treasury
e5ftlfcatcs In anticipation OF the mex,
Liberty Loan the subscription Of Phlia-
09Ipltia Institutions alone will total
K 9143.000. 900. The portion OF DC State
banks and trust companies will aggre-
rate $79.ooo.o00. and OF the national
banks s6l.000,O0
Upon arrival at their Office this morn
me- heads OF every bank and trust COM
i rany In Philadelphia found awaiting
MIN night letter. some ESQ words long,
k setting forth the wishes of the Treasury
Department regarding the above sub
ecription. appealing To the patriotism Of
the financial institutions and urging
Them to inculcatc a saving spirit and
economy among their customers.
This latter suggestion. coupled with
further suggestion for ECONOMY In
credit" was variously interpreted, and
IN some instances bit criticized by
banking officials The thought was that
the present is more time for expansion
of credit rather than economy OF credit,
particularly TO those engaged on Gov
ornment work.
In order that no sudden drain would
VG btcUf ot tht ItSoufttS VI tnc DbnkS III
was requested by Mr.. McAdoo that 1
per cent Of the resources be set aside
each week for the purchase OF the cer-
tincates and THAI the total should not
exceed 10 per cent.
simultaneously the Federal Reserve
Bank received "a telegram stating that
the Philadelphia district would be ex-
pected to subscribe $40. 900. 900 In each
two week periods. or total minimum
OF s200.000.000 II was explained by
an official that this merely meant that
an allotment of that amount had been
made to this Federal district and that
n the subscriptions exceed that amount.
rs expected, the additional allotment will
be made from Washington.
A high bank official said smilingly in
this connection: 'Have no fear that
there will be any limit to subscriptions
In this district and that we will get all
the certificates we ask for. as II Is
hardly likely that some of the western
and southern districts will come up to
their quota.
Bank officials had scarcely time to
digest the telegram from the Secretary
Of the Treasury and to express an opin-
Ion thereon. but In cursory way Il
was ventured that to large extent
that upon the success of the subscrip-
tion to the treasury certificates will de-
pend the success OF the next Liberty
Loan Issue.
These certificates of indebtedness,
which are convertible into Liberty
Bonds. will bear 4 per cent interest, az
did other recent issues. They will b.
dated February and mature May ..
Subscription blanks close on Febru.
ary Is.
While having no necessary bearing
upon each other, II Is generally as
sumed that as the treasury certificates
VIII carry 4 per cent interest rate I
that the next Liberty Loan bonds will
bear the same rate. Much will de- |
pend, as to this, however. 1t was hinted, |
on the avidity with which the treasury
certificates are subscribed
Bank officials further declared that |
the amount Of tresury certificates issued .
at this time is not an infallible index .
as to the amount of the next Liberty |
Loan. Again, II was said In this con-
nection. much will depend upon whether
the issue of certificates Is oversub- |
scribed or only partially taken. The .
present course of the Treasury Depart |
ment will serve as a "feeler," it was |
added.
According to December 81, 1917, re- |
ports Of local financial institutions. the |
big subscribers--based upon total re-
be the PHILADELPHIA Ma
.ional. with s1O.600.O00 the Girard Ma
ional. $4,000. 900; the Franklin National,
100000; Fourth Street National, ST.
100000; Corn Exchange National S5,-
10000: First National. 81, zoo, 900: Gil
rard Trust. $5.700.O00; Fidelity Trust.
Is.500.000: Pennsylvania Company for
on Lives and Granting An
auities, s4.000.000: Provident Life and
Trust. s11.00000O; Commercial Trust,
I2.500,o00 and many others from $780,
300 upward.
These Treasury certificates, OF course.
ire carried on the books like any other
Investment.