The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1919-05-28
AMAZING SUCCESS

~ EW doubted that the four and one-half bill
- lion dollars worth of Victory Loan notes Of
fered by the Government would be taken up
but there was doubt whether the new loan, like its
four predecessors would be taken up in large pro-
portion by small subscribers. While exact figures
are not yet available, it is estimated we write
that at least fifteen million separate persons pur-
chased the new securities. This, to be sure, s
a smaller number than subscribed in the pre-
cedng loan, but that loan was for six billions
and raised under the immediate stress of actual
war. 1t is triumph also that the new loan was
very much ver-subscribed, million and a half
dollars above the amount asked for. The Govern
ment had in advance declared it's intention not
to accept over-subscriptions, it will scale down
only the large amounts subscribed-those over
$4,000 each. Every district in the country ex-
ceeded tbs quota of subscription In every respect
the placing of the loan was not merely success
full, but exceeded even sanguine expectations.
1t is evident that the great body of the AM
ercan people felt both duty and desire to stand
behind the Governments war debts. 1t is evil
dent also that there was large amount of accun-
ulated profits and income available for the pur-
chase of National securities greater amount
and more widely subdivided than most people
thought. That such loan should be negotiated
without disturbing the market values of other Sec
urities and in sound and hopeful condition of The
country's money and stock markets is decidedly
gratifying as an indication of actual business pros
perity.
One important element in the success of the loan
was it's exceeding attractiveness as investment.
The small investor saw the advantage of that
form of the notes which bears interest at ga
per cent and is exempt from any taxation with the
exception of the super-income tax, which does not
largely affect the small investor; on the other
hand the big investor or company saw the advan-
tage of the form of the bond which bears interest
at 3-4 per cent and involves no income tax even
on the super-income.
The total amount which the people of the coun-
try have loaned to the Government in the five
great drives and in the purchase of War Stamps
may be roughly stated to be a little twenty
two billion dollars. But about ten billion dollars
of this was not expended by the United States in
war but loaned to our allies, and on that portion
our Government does not of course pay interest 1t
would be too sanguine to assume because the
loan just completed is understood to be the last to
be raised by "drive" that the expenditure of the
Government in war has been entirely provided
for and that it has nothing else to do but to pay
interest on the loans. There are still good many
outstanding obligations and necessary expendi-
ture must be incurred in the future growing out of
the war. No doubt the period of high taxation
must continue for some time to come.
It would be impossible to praise too highly the
efficiency and energy of the publicity managers
in all the great public loans; they have done re-
markable work and very largely purely through
patriotism and without compensation. In one way
or another they have brought home to every one
in the country the opportunity and the patriotism
involved. The people have become partners with
the Government in making it possible to carry out
the stupendous undertaking upon which We en-
tered when we Joined the Allies in the effort to
overthrow Pam Germanism and ruthlessness.
Outlook.