The Columbus dispatch., 1919-04-16
FLOATING LOAN ON
BUSINESS BASIS"
REACHES EVERYONE
UNLESS ENTIRE COUNTRY IS
SOLVENT THERE CAN BE
NO BUSINESS.
BANKS CAN NOT CARRY 1T
Consequences Is That Everybody Must
Purchase Victory Notes to
the Limit.

Most Americans have heard side
walk and roadway discussions of the
Victory Liberty Loan in which one
man will say something like this:
We'll, OF course, when the time
comes and the campaign starts it Is
government campaign and you are go
ing 20 have my support Just as you had
1t in the other campaigns. But in this
preliminary period want to say that
| believe the loan should be put over
on business basis
The proper answer to give this sug-
gestion should be In substance about
as follows;
"All right. sir, our answer to that is
that we agree with you, first because
we believe that IL is good business for
the nation to be patriotic. Unless the
country Is solvent there can be no
business. And the first business point
to be considered now is that we owe
the money. think you have admitted
that the American people as a whole
owe the money. and think you will
agree that unless a great nation pays
its bills 1t cannot continue to be a
great nation.
THE next point Is that we should
pay our bills promptly. No merchant
hesitates to urge upon the Govern
ment the prompt payment OF its bills.
The public supports this appeal Fur
thermore. 1t is the tradition amongst
mon that commercial bills should be
paid in thirty or ninety days. Since
the Government owes the money,
therefore. it should pay 1t promptly
Now how can 1t pay It?
There are only two ways-by
taxes and by bonds. Goodness knows
the taxes are high enough already
The only alternative, therefor. is to
get money through bond issues.
Now when we come to the sa OF
bonds there are only two ways to dis
pose OF them-frst. by placing them
with the banks. and. second, by selling
them to the people as we have done In
the past four loans.
"Let us suppose we place them with
the banks. What happens? Well, a
bank Is a stOrehOuse and distributor
of credit. Credit is the lifeblood of
business and industry. Without credit
you cannot expand your business, and
IL business does not@xpand in a whole
some, natural way labor cannot be
fully employed. There is no panacea
or magic solution for the present ten
dency edwards labor unrest The
only sound way to cure It is through
the normal and healthy expansion OF
industry, incident upon the return to
normal conditions OF American bust
ness prosperity This cannot take
place without readily available credit
and II the banks are choked up with
Government bonds the rates Of in
terest upon loans will be so high that
business men will hesitate to un 'er-
take new ventures and to make new
the treasury is taking advice, and
will put out the best bonds, from all
points of view. that possibly can be
supported Once 1t is offered, how
o'oi' the ohly ihtelllBont way 10 meet
this situation. from a strictly cold,
practical business standpoint. is to get
under this job and see to it that the
bonds are placed with the people who
can hold them as a splendid invest
ment and who IN the great majority OF
cases will hold them until maturity
and not only receive dollar for dollar
to> them but probably an increase"