The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1919-05-01
SUBSCRIPTION Of
LOAN IS RECOMMENDED

San Francisco, April 3O.-George
X. Weeks, head of the Victory Loan
campaign in the Twelfth Federal
Reserve District, in a bulletin Just
issued says:
Liberty Loan workers should not
gain the idea that, because the Sec
retary Of the Treasury has announced
that Victory Loan Notes will not be
allotted in excess of the $4,50O, ,0OO,-
600 fixed as the amount of this Loan.
work can stop in any locality as soon
as its quota is obtained.
A substantial over-subscription Of
the Loan is very desirable:
FIRST: BECAUSE OF IT'S EFFECT
ON PUBLIC SENTIMENT.
(a) Politically: The peace treaty has
not yet been signed There is in
disputable evidence that many
German statesmen believe their
opponents are war-weary and that
show of their defiance may result
In their avoiding proper reparation
Tor their aggressions. A large
oVer-subscription of the Victory
Loan at the present time will have
an immense moral influence in all
OF the capitals of Europe.
(b) Effect on Business: Confidence
Is the foundation stone of pros
perity. A large over-subccription
OF the Victory Loan will do more
than any other one thing to
stimulate business and strengthen
the markets for all other American
securities.
SECOND: BECAUSE OF ITS Eff
Feet ON THE MARKET VALUE
OF THE VICTORY NOTES.
A large over-subscription will tend
to establish a market value for the
Victory Notes at or above the issue
price. When the great bond houses
offer for subscription an important
new issue of bonds they conduct an
intensive selling campaign and when
the subscriptions come in if there is
the slightest question as to the
market for the new issue offered,
they "over-allot that is, they con-
firm sale of more bonds than there
are In existence. This, to the unit
lated, may seem surprising proceed
ure. 1t is adopted because exper-
lence has shown that there are
always certain number OF cancella-
tlons. Orders are duplicated. Subscri-
bere ask for more bonds than they
really expect to get, or change their
minds. If, therefore, all subscriptions
except just enough to make up the
issue are rejected at the end of the
selling campaign. these cancellations
Immediately throw wet blanket of
bonds on the market and the market
declines. On the other hand, if sales
have been confirmed in excess of the
amount of bonds available, these
cancellations are taken care of in
advance, there is strong bidding for
bonds to take care of the short"
sales, the market advances. and
thousands of subscribers all over the
country are pleased The issue is a
success.
The Treasury Department has
sought to adopt the same principle
in limiting al!otments of the Victory
Notes. If these Notes are 100Gc
oyer-subscribcd, the large subscribers
will be cut down and many citizens
VINO really want the Notes as an in
yeStment will be in the market to
purchase Notes coming from others
who are subscribing merely for ap-
pearances, and do not intend to hold.
Do not be satisfied at going over
the top" with the amount of your
quota. Keep right on going and
storm the enemy's trenches with a
100Pc over-subscription. A country
wide oyer-subscription of this magni-
tude will pay big dividends in de-
veloping political and business con-
tidence and in making a record for
Victory Notes as war offering which
held its issue price.