Pomeroy Washington Downtown National Historic District
April 26, 1919
The general executive board of the Victory loan for the Twelfth Federal Reserve district asks publication of the following:
"In reaching a determination as to the various characteristics of the Victory Liberty loan, particularly as to rates of interest on the notes at the limitation of the amount, and the rejection of over-subscriptions, the secretary of the treasury had in mind, especially, the great importance of insuring a wide distribution of these notes to real investors, so that they could be paid for out of present or future savings and consequently without creating any strain on the banking resources of the country. The terms, as announced, have met with universal approval, but it should be impressed upon every Libetry loan committee in the country, that the real task before us is not accomplished, simply by raising the specified amount of money.
If that had been the sole object, it is probable that the amount of the loan would have been fixed at a larger figure and the oversubscriptions accepted. It is most important at this time with the dissolution of the great Volunteer Liberty Loan Organization, after the close of this campaign, that everything possible should be done to prepare the way for an absorption of the over-supply of government bonds, which has been the chief reason for the decline in the price of the old issues and the plan of the secretary was adopted with particular reference to this situation.
It is, now, the task of the Liberty loan committees to conduct the campaign in such a way that the result will be realized. We must pursue the same intensive methods of distribution as have been, so successfully used in the past. In the fourth loan the committees distributed to over 22,000,000 subscribers, who purchased in amounts from $50.00 to $10,000.00 inclusive, the sum of approximately $4,000,000,000 of bonds, and if equally good distribution can be realized this time, a very large over-subscription is assured.
"The secretary has tried to devise a note which shall be a choice investment at the time of its issue, and which will maintain its market. Having done his share, it is now up to the Libetry [sic] loan committees to complete the work.
"It should again be emphasized that it is of the utmost importance, that subscriptions for these notes should be obtained from the public and not from banking institutions, whose resources should be left free to take care of the commercial needs of the country, particularly, during this period of readjustment from war-time production to peace-time production, and also to care for any short term borrowings which the treasury department may need to make in the future. Attention should be called to the fact that this is the last Liberty loan, and that those people who had heretofore limited their subscriptions to the amount which they could pay for in six month's time because of the probability of another, loan within the period, can now more readily afford to obligate themselves for a longer period of time. Let this be truly a loan of the people, a loan of victory, a loan of gratitude."
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