The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1919-01-16

were not dismayed Educated by the
experience of former loans, they went
to work efficiently and when 1t was
all over, the subscription amounted to
| $500, 416 300, an oversubscription of
| 14.4 per cent. This is the largest sum
of money ever raised by any govern
ment at one time by popular subscrip-
ton or in any other way. A year ago
1t would have been considered impos-
sible, and from the most optimistic
standpoint it must be considered a
miracle of finance. Not only was the
result marvellous in dollars, but the
distribution of the Fourth Liberty
Loan bonds to over 100000 indiyid-
ual Americans makes the performance
more wonderful and will remain a
monument to the united patriotism
| greatest republic.
The result of the four Liberty Loan
! campaigns is the astounding total of
S16,S51 ,699, $50, all raised by porular
subscription and in twenty months
Made Poss BILE BY Federal Banks.
: At this point let us consider for a
moment little incident in 1907 when
this nation, as a result of an up
heaval in Europe, was confronted with
a panic. At that time the banks hast
lily put into use what is known as the
clearing house certificates, the purpose
of which was to permit the issuing
OF emergency currency by the Clear
ing House banks. The panic was tided
over, but the methods used were crude
and unscientific
During the last four years, while
we were going through the greatest
war upheaval of the worlds history,
we have had no panic and we have
made financial history in the floating
of these four mammoth loans. This
has been made possible by the Federal
Reserve banking system. 1t is not my
purpose to enlarge upon the workings
of this system. It is too well known
by every person present to make that
necessary, but it is not out of place
for me to call to your attention the
fact that the f1otation of loans aggre-
eating practically $4,000, 000,0 0N, the
sale of nearly $1,OO0,0O0.O00 worth of
War Savings stamps, the giving of
several hundred million dollars for re-
lief of various kinds has not vitality
disturbed business conditions, and that
with it all and during it all, the COM
mercial rate of interest has not gone
above per cent and for considerable
portion of the time has ranged per
cent and less.
1t is true that our credits must
eventually be debated, but those best
posted are firmly convinced that we
can go through the defiation process
without undue disturbance if we main.
tain the same poise, the same good
Judgment which has so generally been
in evidence among the people through
out our war period.
Cost of the War.
To suru up, the war has cost the
United States up to November 8, 1913,
<S21 ,0G0. 100000, of which amount we
have loaned to our Allies practically
$1,000 900 600 end have snent ourselves
over s14.o000O00OO. During the first
half of the fiscal year, the expenses
of the government amounted to prac.
tirally s9000,00D orc and the estimate
of the secretary of the treasury is that
the expenses of the next six months,
uD to July ]. 1919, will be approximate
ly $4,000, 100000. This stupepdous
sum is needed to finish the Job and
the size CT it is largely accounted for
by the necessity of settling of war
contracts which had to be made on
last at least through the coming year
and are now being closed up as ad-
vantageouslv as possible to the gov
eminent without working injustice to
individuals and corporations.
Our governmental expenses in Eu-
rome are still immense and will con-
tinue to be large until our troors are
returned home and we have done our
part in helning our Allies through the
reconstruction period.
The Ninth Districts Part.
While these figures Of national ex-
penditures are interesting we are of
course more vitality interested in only
our own rart of the financial problem,
that is the part of the Ninth Federal
Reserve district for which we are re-
sponsible to the Treasury department.
The part we have taken and the prob
lens we have yet to solve take on a
personal touch and are what we want
to discuss with you representatives Of
the newspapers of this district A
little history of the districts accom-
plishments will undoubtedly interest
you.
The machinery for floating the First
Loan in the Ninth district was crude
and inadeouate. In srite of this, we
raised s75.926,250, a large proportion
of which was financed by the banks
rather than by the public.
Appreciating that the First Loan
methods were faulty, an entire new
system was adonted for the Second
Loan, the THOUGHT being that with the
war continuing as it might for years,
it was vital that the government Sc
cprities be distributed as widely as
possible. We knew that If the big ma
iority of individuals did not each do
his share il would not he possible