View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Circular No. 2.
Series of 1918

FEDERAL
OF

RESERVE

BANK

DALLAS

R. L. V A N Z A N D T . G o v e r n o r
hoopes.
D eputy Governor
L Y N N P. T A L L E Y , C ASH IE R
S A M R. L A W D E R . AS ST . C ASH IE R
R. R. G I L B E R T . A S S T . C A S H IE R

J. w .

D U T Y OF B A N K S

IN W A R

FINANCING
January 22, 1918.

TO TH E BANKS AND BANKERS OF T H E ELEVE N TH D ISTRICT:
You must bring to yourself a realization of the fact that in order for our participation
in the Great War to be effective and to result in an early and successful termination of the
War, it will be necessary for you to do your part toward financing our Government.
At present War is the business of the United States and your every effort must be ex­
erted toward making it a successful business.
Primarily the banks must bear an important part of this burden and for a time forget
the pleasure and satisfaction to be derived from large earnings and use every available
dollar in financing our Government between the bond issues by purchases of the several is­
sues of Treasury Certificates of Indebtedness which are being offered from time to time.
TH E FINANCING OF ENTERPRISES AND BUSINESSES NOT NECESSARY TO
T H E CONDUCT OF TH E W A R NOR IN C ID E N T A L TH ERETO, AND TH E FIN­
ANCING OF SPECULATION MUST IM M E D IA T E L Y STOP.

While banks could probably make larger profits from such transactions, the rate of
interest on these short time certificates of indebtedness is sufficiently large to give a fair
return on the investment, and, as our President has said: “ Patriotism and Profits must
not be mentioned in the same breath.”
No bank in the entire United States can afford to fail to subscribe for these certificates,
and the time to send in your subscription is TO D AY.
To some of you the purchase of these certificates may mean a sacrifice, but to what an
infinitestimal extent does your sacrifice compare to that supreme sacrifice which is being
made, and will be made, by thousands of our men who go to the front to do the actual fight­
ing for us.
The Secretary of the Treasury has allotted to the Eleventh Federal Reserve District
a minimum of Ten Million Dollars out of a total of Four Hundred Million Dollars of the
present offering of certificates, which are dated January 22, 1918, and will mature on April
22, 1918, and with a proper response from our banks this minimum should be several times
over-subscribed.
Read our circular of January 18 announcing this offering and communicate with us im­
mediately.
Yours very earnestly,

Governor.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)