The sun., 1919-03-06

GIsss's Fears Outlined.
A little further on Mr.. Glass said:
The failure of Congress to make
the appropriation viii, create a situ-
alton In railroad circles that will
amount to practical suspension
largely of activities interfere with
the purchasing activities of the Ad-
ministration. 1t will very greatly
impair the credit Of tho railroads,
and to that extent rendsr the Treas
Try activities very difficult. The only
alternative see will be to have the
railroads go out into the open mar
ket and get loans aggresatins nearly
$1,000. 100000 from the banks. and
that would cut the market up for the
Liberty Loan and make IL very diff
cult for our campaign"
The chairman questioned Mr.. Glass
about his last statement-that failure to
make the railroad appropriation would
have serious effect on the next Liberty
loan and Mr.. Glass replied:
II think so. That condition would
reflect itself upon the loan, and 1
think in a disastrous way. As you
gentlemen must know 1t In going to
be very much more difficult to make
the cQming-and I. hope the last
Liberty loan, than 1t has been with
respect to any of the others. We
were in the fever and the delirium
Of war when the other loans were
projected and the appeal to the pub
lie was inviting and stirring and very
little difficulty was experienced in
placing the loans: but now the war
having ended there is a reactionary
feeling.
People seem to have the notion
that they can lay their patriotism
aside put II on the shelf and every
where ! have0gone l have been met
with the statement that the next
loan must be put on a commercial
basis. must be approached in cold
blood that the only consideration In
volved is one OF business. and II is
going to be very difficult to encounter
that reactionary spirit and overcome
IT,"
Mr.. Glass declared that In the former
leans many people bought bonds the,
could not AFFORD. and that many OF Their
were practically coerced into doing it.
He continued:
This loan has got to be made not
upon a cold blooded business basis,
but 1t has got to be made upon a
patriotic basis. We have got to APP
peal again to the patriotism of the
people. 1t is perfect nonsense to talk
about floating $4,000. 000. 900 or s6,-
OO0. 10000 upon the bonk market
upon a pure business or a pure in
vestment basis. 1t cannot be done"
To He Last Loan.
Can you tell the people that this Il
the last lranr" asked Senator Kenyon
Iowa). rs that a safe statement t,
make to them"
Yes" replied the Secretary, "ann ",
have determined upon that point, tina
this is the lastspublc drive. Of course
the Treasury will have to borrow none,
through the banks In addition to thi
loan. but IL is the last public drive tina
We contemplate making in that way"
After speaking again of the difficult.
expected in selling the next loan Mr.
Glass continued:
"T have no doubt It Is going to be
! done, but IT is going to be Very
troublesome and to disturb the money
| market by forcing the railroads to so
| out and borrow nearly a billion dol
lars at a high rate OF interest would
make our task almost impossible.
! And then again many of these
railroads cannot make loans through
the banks. That would mean that
they would go into the hands OF a re-
, ce!ver. and that would create n state
OF decentralization that might be dis
astrous: just as the failure Of two
| large banks in New York in 1907
created panic that swert the coun-
try. So that in my view it is very
essential that Congress make this ap-
! preparation for the Railway Admins
, tration.'
-What sort OF scheme would II be
asked Senator Martin, ''in regard TO TIL
appropriat ton to let it go to another Sc,
sion OF Congress or to an extra sessio
when one is convened from the point {
view Of the Liberty Loan natter
81 would think that II would have
demoralizing effect upon the Llbert
Loan" Mr.. Glass responded. "becaus
anything that affects as great an ente'
prise as the railroads Is obliged to al
feet the Liberty Loan. The credit OF II
railroads would be to that extent rel
dered uncertain. IL not actually in
paired We are In state of bushes
and general industrial suspension no
and our effort has been to get the rel
resentatives of the basic industries
the country here TO Washington to agr,
upon a reduction of prices in commod
ties in order that industry and bus
ness may go forward. There Is vi
doubtedly d suspension now"
Mr.. Hines confined himself strictly
the railroad situation, OF course. 7
said that the SI50,000,00O sought W.
needed Immediately in order to take ca
, Of two big general items-s3Sl. 900. OF
owed by the Railroad Administration
the railroads to settle up accounts Il
1918 and s36s.0O0 900 needed for 1919 ;
general requirements" Incidental
J. a fVNlu NJ
waterways In connection with the raj
, roads was included in the items, and TIL
work on the New York State bari
! canal would suffer as a result of failu
by the President Immediately to T
convene Congress.
: Mr.. Hines explained> at some leng
} what went TO make up the two big &c
eral items He disclosed that dividen
for all OF the roads under Federal co
troll for the year 1915 amounted to S33'
OoO,O 900. Mr. Hines declared that If t
/ Railroad Administration was put in I
r position OF not being able to pay I
1881, OOO. 900 owed the railroads for I
calendar year 1918 "it would have I
I greatest variety OF disturbing effects
the financial situation
I THE point that ! want to cmphasi
a here-and II applies to everything
t are dealing with here's that this S
uatlon is essentially OF an urgent d
Z ficiency character. and this differs fro
the ordinary supply bills" he continu,
Q THE amount Of 1881 .000. 900 for 1918
due now. The accounts are being STATE
}. Some of th"m / take II are being Co
pleted. The! can generally be co
Il pleted within about sixty days after I
= end of the calendar year. During I
!, month OF March they will be complet
u and We will be confronted with