Evening journal., 1918-02-07
NJ ADOO ASKS BANKS
FOR S3,OOO.O(O.OlO
Secretary to Anticipate
Third Liberty Loan by In
debtedness Certificates
$5OO,OOO,OOO ISSUE
ON EVERY FORTNIGHT


dollars Will be raised In advance Of
the third Liberty Loan, which prob
ably VIII be launched in April, by
the sale OF certificates Of Indebtedness
under a plan looking 10 systematic in
vestment by every bank in these short
term securities.
A comprehensive scheme for prepar-
ing the way for the third loan, an
nounced last night by Secretary Nc
Adoo, provides for the insurance Of
s500,OOo.OO0 or more Of these. certificates
every two weeks until the total runs
to s3,00O,OOO,OOO by the middle Of March.
Every national bank. State bank and
trust company is asked to set aside
each week about per cent Of It's
gross resources for investment in the
certificates In kilograms sent out by
Mr. McAdoo.
The FIRST Of the s5OO.OOO.OOO certin-
cate issue under this plan was an
nounoed last night. The certificates
VIII bear per cent, as other recent
issues; will be dated February 9 and
will mature May Q. Subscription books
are to close February IS. The certif-
Gates OF this and other issues will be
received eventually in payment cf Lib
erty Loan receipts.
The Secretary's plan calls virtually
for the loan by banks. big and little,
Of the three-bllllon-dollar aggregate Of
certificate Issues, before the real Lib
erty 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 total
OF the Liberty Loan will have TO come
largely from individual private sub
scribers.
Treasury officials also believe that
the financial condition Of the nation
can be Judged closely by the success
met by the advance sale Of certificates
About half Of the FIRST Liberty Loan
was raised in advance by certificates
sales and about two-thirds Of the sec
ond loan.
Already s4O0000.00O worth Of certin-
Gates Of indebtedness have been sold In
anticipation Of the third loan. and
about si,Ii5O0O,O00 certificates arc out
standing, to be received in payment Of
income and excess-profts taxes by next
June.
Secretary McAdoos appeal TO banks
10 set aside IN installments, 10 per cent
Of their resources. was urged.
we are approaching a critical test
on the battlefronts Of Europe" he tele-
graphed each bank. II the banks
which are the first line Of financial de-
tense, fail to support the Government
fully In It's necessary operations, We
shall imperil Americas army and
Americas safety, ] know that ] have
only TO state the case 70 command the
support Of every patriotic bank and
banker This Is a supreme duty or pa.
triotlsm. May ! count on you 60 ia
your part and 10 telegraph me i'm
medlstely at my expense that you
will"
The Secretary also pleaded for econ
omy Of credits by banks and promo.
ton of campaigns Of economy among
bank patrons. His message said:
There Is a steady growth 10 the move
ment for economy. Banks should be
able, by participating In the campaign
for economy, which means economy OF
credit as we'll as economy Of expendl-
ture. 20 teach their customers TO save
and accumulate the means 10 buy Gov
eminent certificates and bonds. BY this
method a distribution Of Treasury GER
tiflcates should become possible which
will relieve the subscribing banks Of al
least part Of their purchases and furn-
ISL the means Of making payments fol-
the next issue Of Liberty Bonds with
out undue strain.
II desire to postpone the next Liberty
Loan until conditions will insure a dis.
fributiOn Of the bonds throughout the
country. / request that the board oil
directors Of trustees Of each bank anC
trust company reserve each week oul
az It's loanable funds for the use Of the
Government Of the United states about
one-third Of the gross resources OF
their institution, not to exceed in the
aggregate 10 per cent. and TO invesi
that amount in Treasury certificates OF
indebtedness"
The certificates issued In the pas
have been absorbed largely by the big
ger banks. Secretary McAdoo now
hopes to distribute this burden more
equally over the whole financial fabric
Of the country.
The huge funds thus gathered e
Government account will not pile up II
the Treasury, but will remain largely
in banks considered as Government de
positories. subject to draft by Thu
Treasury. In this way the .000O00,OO
can be accumulated, ready for use Al
needed for big war expenses, now NOR
than si,0OO,O00,O00 a month wlthou
great disturbance Of the banking bust
ness.