The Washington herald., 1918-10-23
STORYOF LOAN
DRAMATIC0NE
Sec. McAdoo Showed Both
Courage and Foresight,
Says Holland.

Nnicn VIII tell IN ful detall OF the
unheard-of achievements of the
American bankers in aiding the
financing of the Fourth Liberty Loan.
not the least interesting or aston
shing Of the chapters Of this his
tory will be the one which tells OF
couraseous action OF the Secretary of
the Treasury. Mr.. Mc,Adoo. The Sec
retary was pleading for the success
fui marketing OF the Fourth Liberty
Loan on the day when the aggregate
suoscri ptions were "a 600. 0oo. 900 or 81. =
600 10000 less than the total amount
asked for. In normal times, when
men OF business or corporations are
seeking banking accommodations
they are not likely TO mention the
fact that In the course of a few
months they will need another loan.
especially u the amount asked for
De large.
MeAdoo Courageous
Secretary McAdoo. however. init
mated that within the next twelve
months he will find il necessary to
ask the American people to buy
bonds aggregsting 5000 10000 at
least and possibly $1,000 OO0. eco This
acknowledgment has been spoken of
"A
ing tho courage Of Secretary Nc
Adoo. as well as in the confidence
that the American people will. in
addition to the four liberty loans
which have been marketed within a
year and half. invest at least e5,
o@.oe.ooo and very likely fl2. 900. =
900 more before the end of the year
1919.
1t might have been thought that
announcement Of that kind would
tend to restrain somewhat the Amer
lean people. and especially the large
corporations and those who possess
great incomes. from buying the
Fourth Liberty Loan to the extent
Of their capacity. But the effect
was otherwise. as Secretary Mcs,doo
had the foresight to expect. The
American peopls may owe TO them
selves by the end of the year 1919
s.s.ooe.oeo.eoo represented by bonds. but
t7s debt viii be a government debt
snd a considerable part OF it will
re paid By the generation which
taxes the place OF the present one.
Where the Money Goes.
The Fourth Liberty Loan will fur
nish funds with which the govern
nnent will meet the expenses which
are now being incurred and are to be
Incurred for some weeks. Secretary
McAdoo said that already the Treas
Ury Department has been. in a sense.
discountiRs the receipt of 81. Oc0, ,Ooo. 90.
because II has been anticipating this
payment by borrowing on short lime
Treasury certificates. The total amount
Of these borrowings is A.5oo.ooo.0o0 In
other words the Secretary admitted
A.N - q n E.xl 49,
20. which the American people were
b take In the Fourth Liberty Loan
ff1l be available for meeting i'm
hediate expenses.
Figures Are Staggering.
The magnitude Of these figures al
most stsggers the imagination even
Of bankers who have been accustomed
to handle very large financial propo-
sitions. ihey have handled this prop
osition, unheard-of in world financing
as u Is. not exactly easily. but with
an efficiency which four years ago
would not have been. deemed possible.
Many Of the bankers not only OF
New York but of other parts Of the
country have turned the mana cement
OF their banks over to their subordi-
Mates and have been occupied eNclus-
lively not only with perfecting prep
arations for the bond-selling campaign
but also with the actual work OF SELL
ina the bonds.
They have accepted without COM
pIsint very large expenses. They have
been acting without commissions or
any Kind Of bonus. When II II re-
menbered tnst In the civil war days
the obligations of the government
were fioated In such manner as to in
volve the payment Of commissions.
then the free-will offering OF time.
service and facilities of the American
bankers. while these liberty loans
we're being marketed. constitutes not
the least interesting or important fea-
ture OF this stupendous financing.
Tribute to Bankers.
All Of the money received from these
loans goes Immediately back to the
people, and even the loans which are
made to our allies represent payments
in a large measure made to the Amer
lean people and American Industries
for SUPPLIES and ammunition in the
war How large these payments are
is demonstrated by the fact that 1.
requires about 81, eco. 900. coo to meet the
erpenses OF the government that are
incurred within two weeks time.
The government Is paying an
enormous sum represented by monthly
payrolls TO the Industrial workers and