New-York tribune., 1919-01-14
Glass Expects
Higher Rate
On Next Loan
Believes Liberty Bonds Can
not Be Floated ''Strictly
ON a Commercial Basis
Addresses Bankers Here
Has Every Confidence Pa
triotism of u. S. Will
Guarantee Issues Success

Carter Glass, the new Secretary of
the Treasury. acknowledged last night
before 700 bankers that it might be
necessary to increase the interest rate
i'll floating the fifth Liberty Loan. His
auditors were members of the Asso-
ciated Banks of the City of New York,
and Secretary Glass was their guest at
their twenty-first annual dinner at the
Wa dorf- Astoria Hotel.
He insisted that the loan could not
be foated "strlctly on a commercial
basis" for the investment value of the
bonds. It's success would depend upon
the patriotism of the country, and in
that he had every confidence.
"But ! am told in a rather discon
certing way by men of excellent judg
ment and tested patriotism," he said,
"that We shall have to consider the
next Liberty Loan in a cold blooded
fashion, THAI we shall have 10 approach
the subject in q very different attitude
OF MIND and heart from that which pre-
vailed with the other loans. that we
must put it on an investment basis,
that it Is essential that it be CONNER
cialized, and that it viii be impossible
again te appeal to the patriotism of
the American people. | wonder If that
is exactly the fact.
Seeks Bankers Advice
'T wonder if, because we no longer
hear the sound of the guns, we feel
privileged to Law aside our patriotism,
to lay it upon the shelf, to forget the
honorable commitments of this govern
ment and to deal with the matter in
cold blood and strictly from business
point Of view.
81 want the advice of the banking
community of the United States. Its
achievements are such as to invite the
confidence and the admiration and the
faith Of any American citizen, and am
not afraid to have their advice. I stand
here tonight ard frankly say that
should despair if l might not confident
ly ask their advice in an emergency
like this. And | wonder if those of
them who have taken this view have
carefully considered the matter.
would like to take gentlemen who think
this way for a moment to the dew
astated regions of Norehtrn France.
and of Belgium. and there let them get
comprehensive view of what has
happened. of what real sacrifices have
been made for their freedom and mine.
I'VE are not going to float the next
Liberty Loan strictly on q commercial
basis. It is impossible to do it. A
little thought will teach the wisest
among the fnanciers of this country
that it is impossible now to float a
loan of five or six billions purely upon
an investment basis.
Expects Record Response
Should we approach this matter in
cold blood? Should we pjut it upon
purely a commercial basis? | wonder
If men who talk that way can appre
ciate what that humble American boy
did for them? He not only gave his
life for his country, because | was
careful to inquire of his fate, but as
he stood on the brink of time and
eternity, he reached down in his pocket
and pulled out his last farthing and
handed 1t over to this noble Red Cross
woman in order that she might con-
tinue her aid to other American boys
us there no obligation upon US to
recompence valor and herosm of that
character? l want to be sensible. My
own lie has been too hard and too
real to indulge In sentiment o. foolish
emotion. But, gentlemen, say that it
takes higher type of patriotism to
serve mis- nation to-day than it re-
quired IN the delrium of war, and
that IT Is the duty of the American
people, and | believe that they will
regard Il as their privilege, to ap-
ptoach that question with some degree
OF patriotism and not altogether on
commercial basis
Must Invoke Patriotism
We arc not going to float the next
Lioer;y loan strictly on commercial
basis. Il is impossible to do it. A little
thought viii teach the wisest among
the inanclers Of this country that it is
Impossible now to float loan of five
o. AK bi'iions Of dollars purely upon
an investment basis. | do not say that
lhe r@tc CT interest may not have to be
aome" hat increased, but, gentlemen, it
cannot re purely an investment promo
S''on; we cannot approach it and
sbould not approach it in cold blood
ca business way. We have got to in
NoAe the patriotism of the American
people and am going to do it conf
dentiy, and there is going to be such a
response as was never witnessed before
IN America.
~ IS my deliberate judgment that it
Would be profanatioin Of the snirit
that has already been exhibited to sav
laas we should consider the matter in
Soio biood and on a strict business
pass There are yet two millions Of
zNn,S'ican poys on the soil Of Franco
anu oi eefmanv who must be hrouohr
nome } our government is exnend;no.
'hc rate OF $2,oO0,000 a day to meet
.s commitments. Its honor is PLEDGED
- FoHr government, and therefore
Scur hoHor IS pledged, and the honor
% 'nV BANKING community of America
was never appealed to in vain. and lyiIl III
~. DC appealed TO in vain on this oc.
r. T. Stokes, former Governor of
.Scw jersey, another speaker, argued
'oA me encouragement of individual
hltiatlFe ard against government oun'
ofsnlp Of railroads, saying that The ~;
e"'ph OIL American arms was proof If
.ne superiority Of an individualistic
naIion over country where the pov-
e'"'Hcnt superseded the Individual.
Mere Working Machines
~ place Germany and America in
l.iuAtIatiye contrast" he said. cine
German Empire, government controlled
%na government owned; 92 per cent Of
tHe railroads Of that country owned
DS the government; the telephones and
telegraph likewise; the banks. gov
efHinent agcncies, industries undc,
government thumb or in gcycrnmen,
paftTfrTfip the finest and most .cffr
cieht industrial organization tho world
sfst "a" producing the most scientific
"aI macninc known in history, but n
paterual rule that made it's peonle n, . "a
working machines, barbatic and IN.
feeling. Gnu 0"-
turn TO America: Her rail,savs md
her telephones and ner telegranns and
ner industries not governmental, hut
individual. If her po1icv did mi nv