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Circular No. 5.
Series of 1918





R. L . V A N Z A N D T , G o v e r n o r
J. W. h o o p e s . D epu ty G o vern or
L Y N N P. T A L L E Y , C A S H I E R
S AN J R. L A W D E R , A S S T . C A S H I E R
R . R. G I L B E R T , A S S T . C A S H i E R

February 6, 1918.

In connection with the offering of Treasury Certificates of Indebtedness dated Feb­
ruary 8, 1918, and maturing May 9, formal announcement of which is being mailed you, Sec­
retary McAdoo is tonight sending the following telegram to every National Bank, State
Bank and Trust Company in the United States:
“ Between now and the time for making the next Liberty Loan I shall offer for
subscription Treasury Certificates of Indebtedness in amounts of Five Hundred
Million Dollars, or more, every two weeks. I desire to postpone the next Liberty
Loan issue until conditions will insure a wide distribution of the bonds through­
out the country. In order to successfully carry through this program and to pro­
vide for the expenditures for the military operations of the United States and the
Allies, I must have the whole-hearted co-operation of the bankers of the United
States and to that end I request the Board of Directors or Trustees of each Bank
and every Trust Company to reserve each week out of its loanable funds for the
use of the Government of the United States about one percent of the gross re­
sources of their institution, not to exceed in the aggregate ten percent, and to in­
vest that amount in Treasury Certificates of Indebtedness. The exact amount, in­
terest rate, date and maturity (not exceeding ninety days) of each issue of Certifi­
cates will be announced from time to time by me through the Federal Reserve
Banks. There is a steady growth in the movement for economy. Banks should
be able by participating in the campaign for economy, which means economy of
credit as well as of expenditure, to teach their customers to save and accumulate
the means to buy the Government Certificates and Bonds. By this method a dis­
tribution of Treasury Certificates of Indebtedness should become possible which
will relieve the subscribing banks of at least a part of their purchases and furnish
the means of making payments for the next issue of Liberty Bonds without undue
strain. The needs of the Government for the War are great and imperative. The
resources of the Country are ample to meet these needs if every bank will do its
share. I know that once it is realized that by complete co-operation all around
and by everyone doing his part this vital and patriotic service can be performed
and every bank will do its share. W e are approaching a critical test on the battlefronts in Europe. America’s sons are now actually shedding their blood in the
trenches. If the banks, which are the first line of financial defense, fail to sup­
port the Government fully in its necessary operations we shall imperil America’s
Army and America’s safety. I know that I have only to state the case to com­
mand the support of every patriotic bank and banker. This is a supreme duty of
patriotism. May I count upon you to do your part and to telegraph me immed­
iately at my expense that you will. I am sending- this telegram to every Bank
and Trust Company in the United States.”
W e hope and believe that the banks and bankers in this District will liberally respond
to this appeal of the Secretary and come to the relief of our Country in its hour of need.
Yours very earnestly.


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