The sun., 1919-02-11
Unable to FIX Terms Now.

after most careful consideration OF
the matter and after receiving and con-
sidering the views Of bankers. Lipert!
Loan workers and others whose views
arc most entitled 70 consideration. very
reluctantly am constrained to say that
l cannot wisely determine now In Feb
ruary the terms Of the bonds or other
obligations which il would be wise 10
offer for subscription in April when the
Liberty Loan campaign should propeoiy
begin. At the moment we are IN
period OF REIMBURSEMENT. To the slacken-
ing of industrial and commercial activity
incident to the termination OF active
warfare has been added the usual dull
ness OF the winter season.
The necessary and desirable contrac-
ton of our credit structure has begun
and win be greatly facilitated by the
enactment of appropriate legislation to
permit the liquidation OF claims arising
under informal army contracts. steps
have been taken to break the deadlock
which had arisen growing out or the
maintenance, nomnally at least, OF war
prices in certain basic industries. Upon
the enactment OF appropriate legislation
to enable the Food Administration TO
! protect the guarantees given ny inc
! United states ! am hopful that II Will
prove possible to restore the operation
OF the law of supply and demand with
respect to foodstuffs, with. as i believe.
! a consequent reduction In tho cost OF
| living.
"a period Of rising prices and OF In
tense industrial activity such as we have
experienced during the past four years
| Is always period of great apparent
prosperity, and a period of falling prices
| and of the contraction OF credits Is al
tod 90 a al
VIII Hasten Price Adiustm .nt.
THE retardaton OF the process Of re-
adjustment by artificial means can only
increase the evils inherent in the situa-
ton. Buying viii not begin and activ-
| ity will not set in until the community
at lapee Is satisfied that prices have
| reached bedrock.
II am very hopeful that measures
now under discussion may result in the
rapid acceleration Of the readjustment,
and I am firmly convinced that X that
be done America has before her a new
| period of great and growing prosperity.
| am even sanguine enough 20 believe
that II is within the range OF the posi-
BILE that so much may have been accom-
plished on the lines above indicated be-
| fore the expiration OF two months from
now that the whole situation will have
been changed. and that We may look
forward TO the successful Issue OF the
Victory Liberty Loan on terms which
to-day would seem quito impossible.
Furthermore. merely as a matter
OF technique OF bond selling 1t would
be n fatal mistake 20 fix the terms OF
the loan 40 long in advance OF the OF.
fering. The issue would become stale
and It's attractions would have beer
discounted long before the loan cam
paign begins II will be remembered
that the Second Liberty bond act wa,
approved as late as September ~. ant
the bonds were offered on October
1917; that the Third Liberty bond &C
was approved April 4. and the bond.
offered on April 6. 1918; and that tn,
supplement to the Fourth Liberty bono
act was approved September 20. anc
the bonds offered on September rs
1918.
Higher Intercst Rate Likely.
Therefore. and in view OF the early
expiration OF the life OF the presn
no