"The one absorbing matter of interest of the people of the country today is the absolute necessity of making this loan a success, for we are the bankers of our allies," said Arthur C. Wise to the committee and teams for the Liberty Loan at a meeting held in the CRIMSON Building yesterday afternoon. "The fact that the United States has just made a government loan to Great Britain and France of 40 million dollars, making a total since our entrance into the war amounting to 2 billion, 600 million, goes to show to how great an extent our allies are dependent upon us for financial support. News is being sent daily to Europe, to Germany as well as to France and England, of the response which our people make to government movements. We do not want it said that we are lukewarm, but that the loan has been greatly over-subscribed and that the people are already preparing for the next issue."
Again, he pointed out that "the last loan was taken largely by the very rich and the very poor but that now surtaxes have been placed upon the wealthy and although they are still doing their share, yet the government is looking for response from the middle class. Young men have responded to their colors and have been drafted into the army without the government consulting their wishes. They have given up their lives to the cause. The government has the same right to ask for a man's money and savings as it has to ask for a soldier's life. But it does not ask that a man give his money, merely that he lend it; and in return he gets a bond which pays interest and which has as its security the property and wealth of the whole United States.
"And besides that, subscribers will profit by the loan, for the bonds will sell at a substantial premium. The 4 percent. bond of 1905 sold at 140 and the 3 1-2 per cent. bond at 110. The bonds may be sold at a moment's notice and people are therefore protected from any possible loss. The present issue provides "if the government makes a new issue of bonds, except those obliging payment in not more than 5 years, bearing a higher rate of interest, the holders of these 4 per cent bonds will have the advantage of this higher rate by exchanging their bonds into bonds, at the same issue price, bearing such higher rate of interest, payable, principal and interest, on the same dates as the present issue, but in other respects substantially identical with bonds of such new issue, provided this exchange is made within six months of the date of such new issue."
The three methods of payment on subscriptions were also outlined in the meeting. By full payment on the bond either a coupon bond or a registered bond may be bought. A coupon bond is negotiable and may be used by anyone, while a registered bond is the same as a stock certificate and may only be used with the signature of the owner. The subscriptions are also payable in installments under the government plan; 2 per cent. on application; 18 per cent. on November 15, 1917; 40 per cent. on December 15, 1917; 40 per cent. on January 15, 1918, with accrued interest on deferred installments. The third method has just been arranged with the Cambridge banks; 2 per cent. on application, and, in the case of a $50-bond, $7 per week for 7 weeks, or, in the case of a larger bond, a proportionate increase in the amount payable each week.
Mr. Scudder was the next speaker and he outlined a general plan for the campaign next week. Buttons will be given to all subscribers to the loan. A plan was also considered by which a group of men, any one of whom cannot buy a bond for himself, may buy a bond together which will later be sold and the amount and accrued interst divided between them