The Birmingham age-herald., 1919-05-17
LOAN ASSURED
 BEFORE TT BEGAN
Rx HOLLAND.

of New York said to some or those "Ho were doubting the success of the loan that he was confident, first, that in the New York district the quota would be oversubscribed by at least s500.O0O,OO0; next that the aggregate of the sub scriptions throughout the country
 would be in excess of $6,o0o, 100000,
 and, third. that the individual sub
 scriptions would certainly reach 15,-
 o0o 900, and perhaps as much as 2O,-
 oOo, ,000 His prediction has been jus
 tifiec by the event.
 Yet he was not speaking as a man
 who was guessing. He had made It a> point to get information from all points
 of the country. He knew what would
 be done in New York in case there was an apparent tagging in subscrip- tion while the sale of the Victory Loan
 was in progress. He was aware that tacit understanding had been reached which assured oversubscriptions in New York city and he estimated that the amount of oversubscriptions would be not less than $500. o.Ooo,O 900.
 Undoubtedly this forecast together with others somewhat similar in char 'acter, which were made by men com
 petent to give judgment, was made known to the Secretary of the Treas ury, Mir Glass. The secretary, there- fore, had this opinion before him when he wrote the somewhat imploring ap- peal while the campaign was in prog ress to the American public to support
 the loan. It is now known that the secretary did not thus write because he
 despaired of the success of the loan through shortage of public subscr.p- tions, but simply because he wanted to aid in speeding up the campaign.
 Many were the reasons given for the forecast that the loan could be over subsc Nbed and that every federal re- serve district would be found when the campaign ended to have oversubscribed it's quota.
 First of all was the mastery with in two years by the American people of the policy of investing some part of their savings in government securities. From every part of the country have come reports showing that the great body of the American people have by reason of the lessons taught when the Liberty Loans were floated, learned that it is not only wise but profitable policy to set apart some portion of the income or the SdNluES anu lHNcSL III securities which are certain to be paid in full when the time for payment comes and are also certain to yield in- teres+ pa aym ents upon the date fixed.
 WHAT LESSON HAS TAUGHT
 This investment by possibly one third of the population of the United States in government securities will make it all the easier to persuade the people to make other investments by z.~1J c.. ,rrwx which will be offered in the American markets after the high grade charac- ter Of these securities have been vouched for by competent authorities. The leaders in finance say that we are hereafter to witness & wonderful ex- pansion of investment by the American people in what are called gilt-edge se- curities, both domestic and foreign
 Tn the next place, one of the reasons for the feeling of certainty that the Victory Loan would be oversubscribed is to be traced to the bountiful har- vests. This year the American harvest consisting of food commodities of all kinds and also of animal food will be probably of the money value of not far from 5000, 900, 900. In other words, the new wealth produced by agricul- ture and stock raising in the United States in the year 1919 will be almost equivalent to the war debt which this country has incurred. In fact, it will be some s6000, 1000 or s7,0O0. .000. 900 greater than the war debt if from that debt there be substracted the $10,0co,- 000,000 which other nations now owe the United States.
 THEY HAVE THE MONEY
 The harvest of last year and the promise of a phenomenial harvest this year (the value of the wheat, if maas- ured by the government price, $2.2s bushel. being probably in excess of $2. 00.000.000) have furnished the plain people with money in amounts which three or four years ago would have been deemed impossible to accumulate. Then. too. the war workers in the mu- nition and other plants, have received very large sums from the government and the banks have been accommodating deposits in a manner unprecedented Therefore, the people had money avail able for investment in these govern ment securities.
 The men of finance are of the opinion that the announcement by Secretary Glass that the Victory Loan would be the last of it's kind offered to the Amer ican people had little to do with per- suading the public to invest or offer to invest as much as six billions in the Victory notes. The proposition of it. self was tempting one from a busi- ness point of view. Money was plenti- ful and the people knew that the gov ernment needed funds in order to liqui- date certain large debts and also in order to meet the expenditures entailed by keeping what remains of the army in Europe and also in bringing the sol diers and sailors home
 When it is said that approximately B. 0A00n0 American citizens men and women, have invested in the aggregate Liberty and Victory Loans the mean ing is that as many as 350oG.00 indi- vidua1 subscriptions were made for the aggregate offerings. Of course many subscribed to each one of the five loans. Many others subscribed to some of the loans. Yet it is the impression that the number of those who subscribed the first time when the Victory Loan cam paign was in progress is very large.
 By and by undoubtedly the American people will have an opportunity to buy other bonds. But an offering for public subscriptions is not likely to he made. In fact Secretary Glass states that none will be made. Nevertheless the govern ment undoubtedly will be compelled to borrow more money or perhaps to offer bonds which will be utilized for fund ing purposes, Presumably the s4,500,- 900 0.000of Victory notes will at the end of five years be refunded in long time bonds. The people. will have an oppor- tunity to take these bonds, or some part of them, by exchanging their victory 1, notes for the bonds. and if the prevail ing feeling of the American people is and should prosperity reach present day expectations there is lit- tie doubt that very large block of refunding bonds will be taken by the American people. A transaction of this kind. however. will probably be carried on by the aid of the federal reserve