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1918, by the Academy

of Political




Vice-Governor, Federal Reserve Board


NTELLIGENCE is a question of priority. It is a question
of seeing a thing sooner than the other fellow. When once a
thought has been clearly conceived and expressed, when once
it becomes public property and is generally understood, it becomes
trite and obvious. So also the winning of the war has become a
question of priority.
After a four years' struggle, during which over $112,000,000,000 have been spent, the question of the original state of preparedness has lost its significance in its bearing upon the final
outcome. That side, however, has the best chance of winning
which, in the long run, will prove the quickest to foresee, and
to grasp, the constantly shifting problems of the struggle and
to take the steps necessary to master them, whether or not they
are of a military nature. As the President said in his splendid
appeal for thrift on May 29, "This war is one of nations—not of
armies." Modern warfare has become a struggle of resources
and industries as much as a struggle of men, and it involves, therefore, not only the millions that actually serve in the field, but the
hundreds of millions that stay at home. It means that no country
has any chance for victory that refuses to organize its entire population so as to concentrate its thoughts and efforts upon winning
the war. In order to triumph, the rich and poor alike must realize,
before it is too late, that the government has the first call on our
sons, our services, our goods and our savings; that it is entitled
to every available ounce of material and man power.
England began the war with the slogan of "Business as usual";
it took many fateful months until the country fully accepted Earl
Kitchener's view: "Either the civilian population must go short of
many things to which it is accustomed in times of peace or our

Read at the National Conference on War Economy, June 6, 1918.


State and Municipal Capital Issues
armies must go short of munitions and other things indispensable
to them." Today there is no one who would take issue with Lloyd
George's striking statement that "Extravagance costs blood; the
blood of heroes." I believe it is freely admitted today that England's failure to adopt from the beginning the point of view of
these eminent leaders and to appreciate at an early stage the duties
devolving upon the civilian population in times of modern warfare has been the cause of loss to her of untold life and treasure.
But while England was dealing with wholely unprecedented conditions, justly baffling the ablest minds, we who have the advantage
of her dearly bought experience should stand convicted of a very
grievious crime if we lost precious time in adjusting our minds to
a full realization of our civic duties at this juncture.
In time of war nothing is more dangerous and more fatal than
delay. The present emergency requires that the country be
aroused to a thorough consciousness of the fact that whoever uses
material, credit, labor or transportation unnecessarily is placing a
handicap upon his government in its efforts to complete its preparations as speedily as possible. Instead of aiding the government
he competes with it, bars its way, and is guilty of delaying its
progress towards victory.
It was for the purpose of curbing such waste of the national
resources that the British established their Capital Issues Committee, and that a similar committee was organized here about
five months ago. Both committees deal only with cases involving
the sale, or offer for sale or subscription, of securities (any sale
in excess of $100,000 in stocks or bonds falls within the scope of
the American committee's operations). In so far, however, as the
great national task of encouraging economy and thrift is concerned, the underlying principles are the same whether we deal
with individuals, with industrial and public service corporations,
or with states and municipalities, except only that those principles
apply with so much greater force in the case of states and municipalities, not merely because the sums involved are likely to be so
much greater, but also because the example given by these governmental authorities exercises a powerful influence—for good or
for evil—in molding the civic mind. It is for this reason that I
am particularly grateful for the privilege accorded me by the
invitation to speak upon the topic of relations of Federal War


State and Municipal Capital Issues
Financing to the Capital Issues of states and municipalities and
to be permitted to address a conference which counts amongst
its participants so many men prominent as leaders in the public
life of their communities — governors, controllers and mayors,
whose very presence will insure the widest possible interest in the
proceedings of this conference.
When the Federal Reserve Board's Capital Issues Committee,
at the request of the secretary of the treasury, undertook to
deal with the question of controlling and curtailing capital issues,
it established as one of its first principles that every expenditure
not strictly compatible with the public interest of the United
States—that is, every expenditure not directly helpful to the
prosecution of the war, or absolutely necessary for the health and
reasonable comfort of the people, ought to be abandoned for the
time being. The Capital Issues Committee was mindful of the
fact that it was self-constituted and acting without express authority of law, and that it could secure results only by enlisting the
voluntary and patriotic co-operation of all concerned. I am frank
to admit that when the committee began its operations its members were not at all certain that they would not meet with determined opposition on the part of certain groups of industries which,
of necessity, would be seriously affected by its rulings. It is a
genuine satisfaction to be able to state that, from the very beginning, the committee met with nothing but the most patriotic
response. No matter how important or vital any particular issue
may have seemed to the applicant when he first presented his case,
and no matter how insistent he may have been in the assertion of
the prime importance of his individual requirements, nevertheless,
whenever the committee, or one of its sub-committees, explained
the true significance of the problem and the principles which it
was necessary to apply in order best to serve the country, it never
failed to awaken that finer spirit that willingly subordinates individual advantage to the national welfare. The American Bankers'
Association, the Investment Bankers' Association and the leading
stock exchanges of the country assisted the committee greatly by
immediately passing resolutions to the effect that their members would not place, or deal in, any securities coming within
the scope of the Capital Issues Committee upon which it had
not first favorably passed. The committee was also greatly helped


State and Municipal Capital Issues
and encouraged by the fact that the authorities of some leading
communities promptly made it known that they would do everything in their power to co-operate. As soon as the committee was
organized the Honorable A. J. Peters, Mayor of Boston, visited it
in person in order to determine in what manner he might best
assist its work. In his inaugural address, delivered on February
4, he set forth principles that have already proved an inspiration
to many, and will continue to guide many more. He stated:
The gigantic task which we are called upon to perform is one which
requires the mobilization of all our resources, material and moral. We
cannot all of us fight for democracy on the plains of France. We can all
help win the battle for democracy by our loyalty and sacrifice at home. To
be effective the national government must have the co-operation and
support of every unit of government, state and city. The great municipal
agencies must shape their policies to strengthen and support the central
The support which our municipality pledges to the national government
can nowhere be more effective than in the field of finance. The enormous
and imperative needs which the national government must meet by the sale
of bonds require that the competition in the sale of securities by other
agencies should be restricted as far as possible. The Federal Government
is entitled to the first call upon every dollar available for investment, just
as much as it is entitled to the first call upon every man available for
military service. Local bonds must necessarily compete in the market with
national securities, and their issue, therefore, should be restricted to the
lowest possible amount.

Early expressions of this character were invaluable because it
was fully recognized by the committee that it had no power of law
whatever to restrict or interfere with the rights of states or
municipalities to raise funds for any purpose they desired, and
that only by enlisting their voluntary co-operation could it hope
to obtain the best possible results. This is true even though it
was realized that the pledge of the stock exchanges and issuing
houses was likely to be a very important factor in securing the
co-operation of the few who might otherwise have been unwilling
to join in the general effort to conserve the national resources.
The War Finance Corporation Act, which gives to the Capital
Issues Committee legal standing, continues to preserve this voluntary character. The bill, as originally introduced, vested the
committee with power to punish those who would not submit to
its rulings. Congress, however, in eliminating this provision,


State and Municipal Capital Issues
expressed the conviction that it was safe to rely upon the patriotism of the people of the United States to co-operate of their own
accord without the threat of punishment, just as the British cooperate with their Capital Issues Committee, an organization
which likewise depends entirely upon voluntary support.
In dealing with states, municipalities or counties, the Capital
Issues Committee considered mainly expenditures for the following purposes:
Filtration plants
Municipal buildings
Electric light plants
Roads, parks and bridges.
When considering applications of this character, the committee
made it a rule to seek advice from the federal department boards
and commissions having particular knowledge in the premises, for
the purpose of determining whether or not the expenditure involved was essential for the successful prosecution of the war,
or for the health and necessary comfort of the people. Except
when acting upon securities issued for the purpose of providing
funds for the renewal of maturing obligations, only those cases
that were found to be compatible with the public interest, as above
denned, received the approval of the committee. In reaching its
conclusions it observed the broad principles that the use of capital,
material or labor could be justified only where results could be
expected within a very reasonable time. Thus, applications for
roads were acted upon favorably only when it was satisfactorily
established that they were of military importance, leading to
camps, docks, or shipbuilding plants or establishments producing
materials necessary for the prosecution of the war, or whenever
they were shown to be important from an argicultural standpoint
in order to open up agricultural districts or to make their products
available for ready distribution. In the case of schools and hospitals the committee sought the advice of the commissioner of
education or the surgeon general as to whether or not new
buildings were absolutely required and if so whether or not temporary buildings could be used instead of permanent ones, as


State and Municipal Capital Issues
temporary buildings absorb less material, less labor, less transportation and less money. Monumental buildings and parks or
bridges merely involving greater comfort or luxury were disapproved. In many instances the controllers of certain cities and
states consulted with either the central committee or the sub-committee of their district, discussing their budgets item by item, and
almost invariably these conferences resulted in the elimination of
unnecessary expenditures and a substantial reduction in the estimated appropriations. It is a great satisfaction, therefore, to
have this opportunity of publicly expressing appreciation of the
splendid spirit of patriotism shown by these states and municipal
This leads me to the complex question of the relationship of the
state and municipal governments to their various public service
properties. Almost everywhere there are outstanding at this time
franchise and contractual obligations for the building of new subways and surface car lines, or for the furnishing of additional
supplies of water, electric light, power, heat and gas. In the
majority of these cases the national interest at this time requires
that every effort be made to reach an understanding by which
such construction may be postponed unless indeed it serves the
successful prosecution of the war and the health and necessary
comfort of the people. We need the men and the steel to build
our ships rather than to build new subways. We need the coal and
electric power to drive the wheels of our war factories rather than
to give more light for advertising displays or for other non-essential uses. To a certain extent it is true that this new construction
is being restricted by the Priorities Division of the War Industries
Board, which controls the sale of articles such as steel and copper
so as to prevent their being employed for purposes incompatible
with the public interest. But for both the Priorities Division and
for the Capital Issues Committee it is a difficult task to deny the
use of these materials, or the necessary capital, where it can be
demonstrated that by reason of such denial the companies affected
may be embarrassed to the point of defaulting on their contractual
obligations. I hope it will not be considered presumptuous on my
part if I venture to urge that all state and municipal governments
do their utmost wherever possible and practicable to find a modus
vivendi for their public service corporations and help them to


State and Municipal Capital Issues
reach agreements whereby onerous or unnecessary contractual or
franchise construction obligations may be waived or held in abeyance at least for the period of the war. In doing this they will
effectively support the work of the federal government. Irrespective of the release of labor and material involved, it is obvious
that the community itself will best be served by postponing as
much work as possible until a time when prices will be lower and
when, in addition, there will exist the need of finding employment
for the surplus of labor which may be expected upon the termination of the war.
The drastic shrinkage in the value of public utility investments
and the impairment of the credit of these corporations is a source
of grave danger to the general financial situation at this time. We
need the savings of the investor and it would be a serious menace
to the ability of the government to finance the war if public service
corporations, strong and solvent before the beginning of the world
conflagration, should be forced to go into receivers' hands because
of conditions for which they are not responsible. Their credit
must be maintained both on account of innocent investors and on
account of the necessity of preserving the physical development
of corporations whose operations are needed on account of their
direct and indirect effect upon the successful prosecution of the
war or the health of the people.
Franchises in many cases have become excessively onerous for
such corporations, due to the fact that labor, coal, steel and copper can be secured only at exorbitant prices, while the charges
for services rendered often cannot be properly adjusted without
the consent of the community involved. The president, in his
letter to Secretary McAdoo, dated February 19, 1918, expressed
his profound concern over this situation, stating at the same time
that he hoped that state and municipal administrations would
make every effort to deal with these corporations in a spirit of
liberality. All that it is proper for me to do, therefore, is to emphasize the public interest in the protection of the credit of these
corporations and in the preservation of their ability to perform
their important functions.
When the old Capital Issues Committee first undertook its work
it arranged for a conference with public service commissioners
representing various states of the Union. The committee was


State and Municipal Capital Issues
delighted to find that these state commissioners were not only open
to the suggestions made by the committee but that they were in
fullest sympathy with its program and eager to co-operate in every
possible respect.
It is gratifying to note that a number of leading municipalities, after a careful study of this problem, have since decided to
make such equitable adjustments as to enable their public service
companies to weather the storm, and it is hoped that their example will be emulated all over the country.
The thought may have occurred to many that the War Finance
Corporation has been created to cope with this very problem.
Without attempting to speak for the War Finance Corporation
and restating only what its directors have publicly expressed, I
may say that this corporation, in the majority of cases, expects
to deal only with concerns that are solvent and able to provide a
bankers' guaranty. The amount that may be advanced without
that guaranty is strictly limited by law and it is safe to assume
that, except where the public interest absolutely requires, the corporation will not consider itself warranted in making advances to
companies on the brink of insolvency. Therefore, where advances
from the War Finance Corporation are to be sought, it appears
advisable that the communities involved should first do their share
in placing their public utility companies on a basis upon which they
may be at least self-sustaining.
It cannot be denied that state and municipal authorities enforcing economy are often faced with a difficult task. At times it
may be very hard indeed to resist the local clamor for improved
public service and the pressure brought by those interested in the
granting of new contracts. Such cases have come before the
committee. There were instances where the necessity for new
roads was not so urgent as the desire of the contractor to secure
the work, and in some districts architects or builders were more
anxious than conscientious public authorities to build schools. In
those cases, the support given to the local authorities by the committee often was of the greatest value to them. The Federal
Reserve Board's committee were always ready to shoulder the responsibility of protecting the national interest or to take upon
itself any blame for the consequences of its action. I am quite
certain that I am expressing the views of the new Capital Issues


State and Municipal Capital Issues
Committee in saying that it will continue to proceed on the same
lines. May I urge, therefore, that state, county and city officials
avail themselves of the services of the Capital Issues Committee
in the freest possible manner? It is very important that this
should be done, not merely when the securities are about to be
issued, but especially before the expenditures and the contracts are
authorized. It may be embarrassing for the Capital Issues Committee to decline approval of an issue contemplated for the purpose of liquidating a banking obligation previously incurred, except
indebtedness incurred prior to April 5, 1918, in accordance with
the provisions of Section 203 of the Act of April 5, 1918; but
you can readily see that if the committee did not stand ready to
disapprove bond issues to be made in liquidation of a banking
debt previously incurred for some purpose incompatible with the
national interest, some corporations and municipal authorities might
soon adopt the practice of first creating the debt and then forcing
the hand of the committee.
Curtailment of expenditures involves automatically a proportionate reduction in the amount to be raised by the sale of securities, and to that extent it means that local administrations refrain
from competing with the federal government for the savings of
the people. I need not enlarge on that important point except to say
that if at present it is proper for all corporations to avoid this
competition with the government, there is all the more reason for
states and municipalities to do so because the majority of the
securities sold by them are exempt from federal taxes. The federal government, instead of continuing to issue 3^2% tax-exempt
bonds, has adopted the policy of selling 4*4% bonds only partly
tax-exempt, and is willing to pay the higher interest rate for
the purpose of keeping as unrestricted as possible its field
of comprehensive taxation. While I do not question the legal
right of the states to issue tax-exempt bonds, we must recognize
that to the extent that a state issues such tax exempt securities, it
deprives the federal government of the taxing power so essential
for the public welfare in this emergency. All the more sacred,
therefore, is the obligation imposed upon local governments issuing such tax-exempt bonds not to authorize any issues except
those absolutely necessary for the immediate welfare of the community.


State and Municipal Capital Issues
May I, in passing, dwell upon an additional reason why it is of
the utmost importance to reduce to the minimum the issue of
securities at this time? It is on account of their bearing upon
"inflation," a problem with which it is impossible for me to deal
exhaustively within the limits of this address.
The pernicious consequences of inflation are a rapid increase
in prices, and a corresponding decrease in the purchasing power
of money. As the increase in prices progresses, the amount that
governments must borrow grows correspondingly. It becomes a
neck and neck race between a ficitious wealth and a reduced value
of what that wealth can buy in labor and in goods. It must be our
aim, therefore, to restrict inflation to the smallest possible scope
compatible with the achievement of our national purpose—the
successful prosecution of the war.
From an economic point of view, it is considered unsound and
unbusinesslike for any one to issue his obligations for things of no
permanent value. No corporation would think of issuing bonds
against the coal that has been consumed in producing its finished
article or against wages that have been paid; nor would you or I,
at the end of the year, treat as an asset the food that we have eaten
or the suit of clothes that we have worn and thrown away. That,
however, is what all belligerent governments are doing and what,
under present circumstances, they are obliged to do. This process
must lead to economic disaster wherever the waste of the government is not counterbalanced by increased economy on the part
of the people. We must bear in mind that the production of permanent values in normal times is accompanied by a certain amount
of necessary and unnecessary wastage, such as the consumption
of goods, food and clothing, in quantities beyond what is necessary for the production of the article and expenditures for the
comfort and luxuries. The necessary material and labor put into
the article produced, plus the incidental wastage of goods, and
plus a reasonable profit, constitute in normal times the value of
the properties added to the assets of the world. This normal
wastage must be reduced as the abnormal wastage of the govern1

This is a partial quotation from my paper, "Save and Subscribe and
Save the Country," published on April 28, 1918, in which there was presented a fuller discussion of the various aspects of inflation.


State and Municipal Capital Issues
ment increases. If this policy is carried out consistently the speed
with which inflation proceeds is thereby reduced proportionately.
To sum it up in its simplest form: on the one side of the balance sheet of the world corporation are all the things unconsumed; on the other side are the dollars. If the dollars increase
rapidly and if the "things" do not increase—or if indeed they
decrease—there must ensue inflation of prices. The means to
counteract inflation are, therefore, on the one hand, increased production and decreased consumption of "things" and, on the other,
a slowing down in speed and volume in the creation of new dollars
in the form of new securities, currency or credits. The more we
save, the more do we increase the amount of "things" on the one
side of the ledger and the more may we hope to succeed in keeping
their price down, decreasing thereby the amount of new dollars
to be issued in payment. It follows that inflation is not a question
merely of banking or currency, but fundamentally a question of
The duties of the state and municipal governments with respect
to this great national problem are easily perceived from the foregoing. By curtailing expenditures to the utmost, they not only
conserve to that extent goods, labor and transportation, and make
the savings of the people available to the federal government,
but in addition they avoid the guilt of becoming factors in the
further increase of prices and of aiding the process of inflation
through the issue of additional securities.
There exists on the part of many some hesitation to co-operate
without reserve in this effort of saving, because they fear that
consistent saving and curtailment of credit may create great hardships and subject many people to the cruelties of unemployment.
I am profoundly convinced that we have no right to let this
thought prevent us from going the full length in our drive for
economies. When we have under serious contemplation the withdrawal from peaceful occupations of between two and five million
men at a time when the country is in such urgent need of such
immense quantities of goods that our mind is not capable of picturing them, and when it needs these goods with the least possible
delay, fear of serious unemployment need not be entertained. It
is true that for some time to come there must be a continuous
shifting of men and women from one occupation to another.


State and Municipal Capital Issues
When there is a shortage of thousands of carpenters in the shipyards, farm hands, who are generally trained to tinker in all kinds
of arts and crafts, will be drawn into these yards and their places
in turn will be filled by other classes of day laborers. If the
women should decide, as I trust they will, to spend less than in
the past upon all kinds of fineries, some girls may lose their places
as dressmakers and seamstresses, but, as a result, there will be
found large numbers of them running elevators, or doing clerical
work, or serving in munition factories. No doubt there will be
temporary and unavoidable hardships connected with this shifting
process, but this is one of many sacrifices that we must be willing
to bear. Organized labor realizes these conditions and the members of the Capital Issues Committee who met with representatives
of their organization were deeply impressed by their patriotic,
courageous and statesman-like point of view. At the same time
the Department of Labor is trying its utmost to complete its
machinery for directing and assisting in this readjustment of occupations while other agencies of the government are devoting themselves to the task of guiding industries away from the production
of less essential to essential goods.
Nothing can be more detrimental to the successful accomplishment of our industrial war program than the effort to leave undisturbed the industries that cater to the extravagant tastes of all
classes. The argument that it is necessary to keep on selling luxuries in order to finance the war is too preposterous to be considered seriously. In times of war we do well to remember the
wise expression of old Diogenes, who said: "How many things
there are in the world that Diogenes can do without." That applies
to the life of the individual as well as the community as a whole.
The people of the United States who stand ready to give their all
to win this war will cheerfully forego unnecessary comforts and
luxuries when once they fully grasp the real signifiance of economy
in this emergency. If they have not yet begun to do their full
duty in saving, it is only because they have not had it sufficiently impressed upon their minds that saving is not a petty
matter but that there is glory in saving, that saving has an immediate bearing upon the question of victory and defeat and of life
and death, and that at this time it is the biggest contribution the
civilian population can make. We must train ourselves to visual-


State and Municipal Capital Issues
ize the cumulative result of individual and communal thrift in the
light of which the smallest contribution assumes its true importance. It is not difficult to wear old clothes instead of ordering
new ones, when we impress it upon our minds: that (our factories
being busy day and night in producing the things needed for the
war) there are available only few goods which can be sent to
Argentina in payment for her wool; that we have no ships to
spare, nor gold; that we—that is, the group of Allied powers—
need Argentina's wheat and meat and wool, or Chile's nitrates or
Peru's copper; that through our being short of goods to sell to
neutral countries, the value of Allied currencies as reflected by the
exchange rates in neutral countries has depreciated so seriously
that we can continue extensive purchases in neutral countries only
to the extent that they will grant us loans to cover our debit balances. It is true that most of those neutral countries are as
anxious to sell their goods as we are to secure them, or even more
so, and that, therefore, these neutrals are as vitally interested
as we in bringing Allied exchanges back more nearly to normal
rates and in granting us credits that will enable us to buy and pay
for their goods. But in the nature of things, these credits must
be limited by the amounts that these countries can afford to loan
and, as far as short loans are concerned, by the maximum amount
which we may safely obligate ourselves to release in gold to them
upon the conclusion of peace.
It is impossible within the limits of this address to give a full
presentation of the many phases in this question of foreign exchange. Suffice it to say in this connection that in saving goods
we accomplish three things—first, we decrease the volume of
things we must import; second, we increase the volume of things
we may export in payment of imports; and finally, even though
present lack of transportation facilities may serve to prevent us
from shipping all available goods, we nevertheless accumulate a
most valuable reserve stock of raw materials and finished products.
If Joseph could return today and foretell the future to Pharaoh, he
would predict that at the end of this war there will be a great
famine of raw materials and he would urge those in power to
acquire and store up whatever surplus of foodstuffs, cotton or
other similar raw materials the country might be able to save and
accumulate. As far as our own position is concerned, such


State and Municipal Capital Issues
reserves of goods will prove of the greatest value during the war
in adjusting our foreign balances, and a most effective protection
for the coming period of the after-the-war trade struggle. Whoever controls the raw materials will hold the key to commerce and
finance, not only because he who can sell goods need not send gold,
but also because control of raw materials will give an invaluable
advantage to the manufacturer competing in world markets. Our
gold reserve at this time is the financial backbone of the Allied
cause; let us add to our "gold" reserve a "goods" reserve. Maybe
that Joseph would add this further admonition: that the necessity
for saving will not end immediately upon the conclusion of peace
but that for years thereafter thrift will remain a national requisite
to be practised as scientifically and as cheerfully as was our farfamed extravagance in the past.
It is impossible to do justice to the topic allotted to me without
demonstrating as vividly and as convincingly as possible the allimportance of individual and communal thrift and economy for
the present and future welfare of the country. The bigger the
lines on which we conceive this problem, the easier will it be to
arouse the entire country to support the United States in the
accomplishment of its difficult task.
Owing exclusively to the iron pressure of necessity caused by
the British blockade, and to the consequent enforcement of a rigid
system of rationing, Germany has been able to perfect a plan of
complete industrial mobilization and of the greatest possible individual and collective thrift and economy. If it is true that "Intelligence is a question of priority," we may say with equal force
that "Priority is a question of intelligence." Shall we be able to
see soon enough in what respects we must give the government
the right of way ? Shall we be able to see our duty clearly enough
to perfect this great plan of conserving our natural resources by
creating our own voluntary blockade around extravagance and
waste? Can we co-ordinate by voluntary agreement all the independent forces of state and municipal administrations, so as to
secure the efficiency of autocracy under the flag of democracy?
It is a difficult task, but one that is beautiful and inspiring, and
when once our people grasp its full meaning, they will never let
go until it is accomplished.
Nothing will have a stronger effect in molding their minds than


State and Municipal



the sight of their own authorities restricting public expediture,
and denying public comfort, for the greater benefit of the nation.
Individuals will save in the small things when governments demonstrate their determination to save in the big ones. If governors
and mayors and those who share with them the responsibility of
administering o u r commonwealth, instead of permitting themselves to be placed on the defensive by apologizing for savings
effected by them, will make themselves bold and enthusiastic leaders in this movement, inviting the people to co-operate with them
to the utmost of their ability, we shall have taken a long stride
toward winning the war.
TO MAY 17, 1918.
Amount considered... .$86,878,512 $172,069,605 $219,510,269 $478,458,386
Amount disapproved... 19,791,665
Aggregate approved... .$67,086,847 $166,069,605 $179,610,269 $412,766,721
Less "refunding"
21,392,312 125,860,284 111,411,900 258,664,496
Aggregate new issues. .$45,694,534
New issues last year
same period
Analysis of new issues
Amount original applns.$65,486,199
Amount approved
Curtailment effected.. .$19,791,665
Analysis of applications
informally discouraged:


$68,198,369 $154,102,224




$46,209,321 $108,098,369 $219,793,889
68,198,369 154,102,224