Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-08
GOSSIP OF The STREET |
SUGGESTS PLANS
TO PREVENT LOAN
Banker Favors Sale of Allied
Bonds Instead of New United
States Issue

Tie manager OF a large banking and
Investment house remarked that he had
heard no news from Washington giving
particulars about the fifth Liberty Loan.
He said he had been giving some
thought to the matter and was wonder
Ing II the new Secretary of the Treas
ury would rave some original ideas as
to the title and terms of the loan. He
sale he believed that the public was
tired of the term Liberty Loan and
that some change should be made In
the title at least. In this connection,
he remarked. he had been thinking of a
plan which he had not seen suggested
anywhere, and which he thought would
be popular here for the next loan.
why not" he said, have our Gov
eminent take over the bonds or obliga-
lions OF the Allied countries for the
money they now owe us to the extent
Of the amount necessary for the next
Liberty 'Loan--S3,o00, 900, 900 or $1,000
000,0 600, or whatever it may be? Let
these foreign bonds of the various coun-
tries carry the same amount of interest
which these countries are paying their
own peoples per cent or 6. or what
ever the various rates of interest in the
several countries nay be. Let the
United States stamp its guarantee on
these obligations and sell them TO our
people instead OF Liberty Bonds. Ar
range for legislation which would make
certain tax-exempt features and any
other notifications which time and dis
cussion would determine. With u big
foreign population here the bonds of
their own countries would appeal to
them in a way that a fifth issue of Lib
erty Bonds would not. and with the
guarantee of our own Government back
OF them they would mean the same to
Americans as IL they were our own
Government issues"
Another banker when discussing this
subject, said We would rave TO take the
obligations of the Allied countries for
several years to the extent of $780,
100000 anyhow. for the interest pay
ments on the money we have loaned
them, as they are In no position TO
meet these obligations in n other way.
Even IL they had the gold. we don
van it, as We have already too much
gold, so that IL we were to substitute
foreign bonds guaranteed by the United
States for the Fifth Liberty Loan they
would be in addition to the $500, o00,-
900 annually above mentioned. as We
need the money from the Liberty Loan
ourselves.
There is an opinion generally held by
financial men In this city, and which is
said to be still more generally held by
manufacturers and merchants here,
namely, that before we can have the
great wave Of prosperity which is ready
to break the moment peace is signed,
wages must come down.
One of the partners of a leading bank
ing house said in this connection that,
so far as he could see. and from con-
versations with the heads of well-known
manufacturing firms in various parts
of the country. the menace of wages is
the most serious problem now facing this
country. Already, he said. several large
manufacturing plants. like the General
Electric Company. are shutting down
because they cannot meet the demand
Of the workers and continue to do busi-
ness. There are many such concerns That
will follow suit. he said, should the en-
ployes insist on wage increases. He said
he did not look for such a situation last
ing as long, or being SO destructive In
results as had strikes and lockouts ir
certain manufacturing lines in this city
some years ago. He believes the wage
earners will learn from experience that
an adjustment Of wages must precede a
prosperous industrial wav with full.
time employment fer all concerned.
Speaking on the same subject, an in
vestmert broker said he understood car
penters who are nothing more thar
"hatchet and saw men were demanding
$3.50 an Jul at shipyards and other
places. They are now getting 81 ar
hour. he said, but they want $3.50. ar
e%ight-hour day and time and half fol
overtime. 81 have met several employ
| ers,'' he said. "who are willing to pay
even the $3.50 without overtime extra
II they could only get the work done,
but they argue, that these men don't dc
any more. IL as much work for $1.5C
than they do for 81, and the difficulty is
that the work is so planned that othel
workers must wait for them as the wore
Is passed along. IL two or three Of these
men take a day or two off they compe
others to go idle because they are Deepen.
dent on what these men finish"
Some bankers take a rather pessi.
mistic view of the wage outlook. ano
base their conclusions On recent utter
ances of Samuel Gompers on the sub
ject.