The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war, Part 11

Author: Greenough, Walter Sidney; Indiana Historical Commission. cn
Publication date: 1922
Publisher: Indianapolis, Indiana Historical Commission
Number of Pages: 306


USA > Indiana > The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war > Part 11


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THE WAR PURSE OF INDIANA


Throughout the state the county organizations had been built more compactly for the Fourth effort, though in gen- eral the same leaders remained in control. In Marion County, under the direction of the same executive committee, the "Marion County Legion" had been formed, by constructing an organization on a war basis down to the city block and even to lesser units.


Gasolineless Sundays, lightless nights, daylight saving hours, and much more stringent food-saving regulations had been placed in effect throughout the summer and early fall, and other wartime restrictions had made the daily life of Hoosiers fit in directly to the mammoth scheme of personal sacrifice which had become the watchword of the hour. Busi- ness men from the cities were spending their "vacations" on farms in order that the crop might be harvested, and the farm labor shortage, caused by the draft, lessened somewhat. The Boys' Working Reserve had enlisted thousands of high school students and other young men in the farm labor plan.3 Food was being produced, then saved and stored in Indiana with a determination that amounted almost to frenzy.4 The thrift idea had come definitely to the people of the state and nothing was destroyed that might be of value on the firing line, or in support of the great army back of that firing line.


U. S. Certificates Help Bond Sales


As the Fourth loan approached, it found the Indiana banks saturated with Government securities of various types, but among them were millions of dollars in anticipatory certifi- cates of indebtedness against the Fourth loan. These cer- tificates had been allotted to the Seventh District territory to a total of approximately three-fourths of the total allotment


3. A total of 24,100 boys were enrolled in the U. S. Boys' Working Reserve of Indiana, according to the annual report submitted by Carl B. Fritsche, assistant state director. Indiana Year Book, 1918, page 585.


4. In 1917, Indiana farmers planted 5,600,000 acres in corn, or 600,000 acres in excess of the 1916 crop. The total yield in 1917 exceeded the yield of any pre-war yield by 28,000,000 bushels. In 1917, the wheat crop in Indiana amounted to 33,392,000 bushels, and in 1918 it amounted to 54,999,000, representing an increase of 64 per cent. Indiana farmers were requested by the Federal Government to increase the wheat acreage 17 per cent. in 1918, but the records show that they responded with an increase of 630,000 acres, which represented a 23 per cent. increase. The U. S. Food Administra- tion requested Indiana to increase its pork production 20 per cent. in 1918. Reports submitted for that year show that the request was complied with, and that the increase amounted to slightly more than 20 per cent. Figures compiled by Walter Q. Fitch, Assistant Secretary, Indiana Committee on Food Production and Conservation, in Octo- ber 1919 ; also see Report of Indiana State Council of Defense in Indiana Year Book, 1918, page 590.


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INDIANA WORLD WAR RECORDS


of Fourth bonds, prior to the beginning of the Fourth cam- paign, and the "shock absorbers" of the Loan therefore as- sisted materially in the final splendid result, although no figures have been found to show exactly to what degree this pre-sale of the bonds had gone.5


At a meeting held in Chicago shortly after the close of the Third campaign, a plan was adopted looking toward a wide- spread distribution of Treasury Certificates throughout the states in the Seventh Federal Reserve District. M. A. Tray- lor of Chicago, who had been named Director of Sales for the Treasury Certificates for the Seventh District, was in charge of the meeting. Will H. Wade, chairman of the Lib- erty Loan campaigns in Indiana, was appointed Director of Certificate Sales for the state. He in turn appointed county workers to take charge of the sales for their respective coun- ties. In a general way, it was through this machinery that the government requirements in war financing, during the interim between the Liberty Loan drives, was accomplished in Indiana.


Leonard L. Campbell, office manager of the State Liberty Loan Headquarters, discussed from first-hand experience, the operation of the certificates of indebtedness, and their great increases prior to the Fourth loan as follows :


"The 41/4% bonds of the Third Liberty Loan were so ef- fectively distributed throughout Indiana that when the drive closed the amount of bonds in the hands of the banks was negligible. This situation prevailed in a greater or lesser degree throughout the country.


"In order to facilitate government financing and to supply it with its periodic requirement for additional funds, and at the same time to provide the banks with a means whereby they might accumulate a medium which would enable them to pay for the Loan bonds purchased for their community without any sudden withdrawal of cash, the plan of issuing United States Treasury certificates of indebtedness was con- ceived. The Treasury certificates were issued originally in such quantities and at such intervals as the government re- quired additional funds.


"At the outset between the Second and Third loans the volume of certificates was relatively small and the intervals of their issuance were at least a month apart. These cer-


5. See p. 241, Appendix.


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THE WAR PURSE OF INDIANA


tificates were made to mature within four or five months from date and were to be accepted by the Treasury department in payment of all loan bonds of the issue, in anticipation of which they were issued. With the increased war demands for finances the volume of certificates issued became larger and the intervals between the issues became shorter. The organization for their distribution was expanded and became more effective between the Third and Fourth loans."6


"Politics Adjourned" for Another Drive


The November elections were in the offing when the cam- paign for the Fourth liberty loan swung into its peak. The successful manner in which the two leading political parties in Indiana had combined in an effort to put over the Third loan campaign, and the publicity value of this plan prompted Loan officials to attempt it again in the Fourth campaign.


Edmund M. Wasmuth, state chairman of the Republican party, and Fred VanNuys, state chairman of the Democratic party, held a conference early in September and another po- litical "truce" was declared in Indiana. Letters from the political chairmen, which went out to all the local workers in the state, announced that by agreement between the chair- men and Mr. Wade, chairman of the Liberty Loan committee, "all political meetings have been declared off between the dates of September 14th and 28th, inclusive."?


One of these letters said :


"This period of time will be devoted to patriotic speaking in behalf of the Fourth Liberty Loan. Following the prece- dent of this committee in the Third Liberty Loan campaign, we have tendered our entire political organizations in the state to the State, District and local Liberty Loan organiza- tions during the above period of time.


"We are appealing to you to use your precinct organiza- tion, your county candidates, your speakers' bureau and all the machinery of your county organization in making this Liberty Loan campaign a complete success. I know this co- operation will afford pleasure to you and your associates. May we not see to it that this Loan is oversubscribed within the period of time fixed by the government."8


6. Notes of Leonard L. Campbell, Fourth Liberty Loan Files.


7. This was the period of greatest preparation for the Fourth loan.


8. Correspondence, Fourth Liberty Loan Files; letter dated September 27, 1918.


8-21521


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INDIANA WORLD WAR RECORDS


Leaders in both parties, particularly in matters of counsel to Loan officials, and in furnishing public speakers to George C. Forrey, state speakers' bureau chairman, and to county Loan speakers' bureau chairmen, assisted the Loan drive ma- terially.


That the Federal government realized that Indiana was doing her share whole-heartedly in the war, even though the political complexion of the state government was different from the national administration, is found in an interview given out by Secretary of the Navy Josephus Daniels, Sep- tember 3, 1918. He said: "Indiana has more than met every requirement and expectation of these demanding days. Whether it has been money, men, munitions, supplies, crops, machinery or whatever else, Indiana has done more than her share, and her sister states know she will continue as she has begun, and are proud of her. My closest interest is in the Navy, of course, and I have been gratified especially by the quality no less than the number of Hoosiers who have en- listed in this wonderful arm of the service."9


Secretary Daniels had just delivered a Labor Day speech in Indianapolis, and in referring to the impressive parade he continued :


"It was readily apparent from the faces of the men in that great parade that every one realized that while the glorious news that keeps coming from the western front in France is highly encouraging, its chief significance is that instead of relaxation here, our efforts must be redoubled and every energy must be bent towards maximum production of all things that will contribute to the winning of the war, and this production must be kept at the top notch until the war is won."10


In the midst of the plans for the opening of the Fourth loan, the new selective service law for all men between the ages of 18 and 45 years was put in motion, and on Septem- ber 12, approximately 350,000 men who had not registered for military service prior to that time, were registered in Indiana. This historic day had much to do with stimulating the fervor with which the people generally threw themselves into the Fourth campaign.11


9. Indianapolis Star, September 3, 1918.


10. Ibid.


11. Indianapolis News, September 13, 1918.


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THE WAR PURSE OF INDIANA


Airplane as Publicity Feature in Fourth Campaign


The publicity campaign in Indiana for the Fourth loan utilized all of the varied agencies of the state that had been touched in the Third loan and embarked on others, which were to have even more far-reaching news values in them than had the efforts of the previous Loan. Chief among these new efforts were those centering about the organized use of airplanes as a vehicle for publicity.


Prior to 1917-18 there were counties in Indiana where the people had never seen an airplane. The news from the bat- tlefronts of Europe was continuous in its description of the new fighting system-the use of airplanes for battle purposes directly and as "the eyes of the armies". The air machines had become more or less an everyday sight in Indianapolis and a few other cities of the state, which lay directly in the paths between such flying centers as Wilbur Wright Field, at Dayton, Ohio; the Indianapolis Motor Speedway, where a re- pair depot had been established; Rantoul Field, Illinois; and fields in Michigan and near Chicago. But the average Indi- ana county was without first-hand knowledge of airplanes and their maneuvers. It was determined to make the Fourth loan interesting to the people of the state through widespread use of planes.


The director of publicity named Wallace O. Lee, of Indian- apolis, to assist in the organization of this work. Carl G. Fisher, of Indianapolis, and others were interested in the pro- gram.


Fred A. Sims, former secretary of state in Indiana, was ap- pointed Director of Airplane flights. He and Mr. Fisher, who was named chairman of aviation for the Fourth liberty loan campaign, saw that the education of Hoosiers to become air- plane 'fans' would not only bring great publicity value in the Loan campaign, but might hold in store great possibilities for future peace-time development of aeronautics.


At that time it was believed that the war might continue for years. The need of the government for safe landing fields for its planes and for training areas for aviators was growing each day. The commercial use of airplanes after the war in those days was accepted as a fact. Practically no landing fields existed generally throughout the central west and no state in the Union had undertaken to popularize the airplane to a degree where safe landing fields would be available in


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INDIANA WORLD WAR RECORDS


every county. Indiana, through the Fourth liberty loan air- plane officials, set out to lead the procession.


It was proposed originally to obtain a fleet of airplanes from the Dayton, Ohio, Rantoul, Ill., and other fields for use during a great "airplane week" prior to the beginning of the Loan drive, September 28. This program, in general, was carried out although delays of many types interrupted the schedules. The death of Captain J. J. Hammond, celebrated British "ace", who made the first flight from Indianapolis to Greenfield, Ind., for the Loan program, almost stopped the airplane program, but it was members of the British Aviation Mission to Amer- ica, under whose auspices Captain Hammond was flying, that started the program again on its way to completion. Captain Hammond, returning to the Indianapolis Speedway from Greenfield, carrying two passengers, lost control of his ma- chine as he attempted to alight at the Speedway, and was killed, with one of his passengers, John L. Kinder, a civilian, of Greenfield.12 Lieutenant Roy Pickett, of the United States air service, who was the other passenger in the Hammond machine, was seriously injured. Following the death of Cap- tain Hammond, his associates in the British Royal Air Corps, pointed out that his death had been but another sacrifice for war, and urged that the Indiana aviation program be carried on.


Approximately sixty landing fields, safeguarded in many ways, and inspected by United States Army Officers as to proper marking, topography, etc., were obtained. With the assistance of Vice-President Marshall and Major-General W. L. Kenly of the Division of Military Aeronautics, efforts were made to obtain planes and aviators. An endless amount of negotiation was necessary. Finally it was by mere accidents that the Loan committee was able to carry out its plans.


A Hoosier aviator, then in training in the South-Maurice A. Sharp, of Greencastle-happened to fly from the training field to his home, and was pressed into the campaign. Then four planes from the Rantoul, Ill., field, piloted by a group of officers under the command of Lieutenant Frederick Byerly, happened to drop down at the Indianapolis Speedway on a training trip. Other 'accidental' flyers arrived from time to time and as rapidly as they came, the officers at the aviation depot at the Speedway told them of the elaborate system of


12. Indianapolis Star, September 23, 1918.


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THE WAR PURSE OF INDIANA


landing fields throughout the state. Always the flyers became enthusiastic and entered into the program joyously. And In- diana counties rose up almost en masse to enjoy and wonder at this new feature of loan advertising. Dozens of counties finally saw the planes, and reports from many parts of the state told of the efficiency of this new method of drawing at- tention of Hoosiers to the forthcoming Loan campaign.13


Lieutenant Byerly, returning from one of the flights into Johnson, Bartholomew, Jackson and other counties south of Indianapolis reported :


"We were amazed at the enthusiasm of the people. We could see people in automobiles speeding along the roads to get to our landing places. When we dropped literature out upon the towns we crossed, the citizens rushed out to grab it up and to wave their greetings to us. But the finest thing of all was the demonstration of public spirit in providing us with safe and spacious landing fields. We had no trouble except in one place. There one of our planes had to land in plowed ground, owing to a misunderstanding of our space require- ments. The flights have given all of us something new to talk about when we get back to our bases."14


To complete the story of the airplane advertising it can be said that had the Armistice, with its resultant readjustments, not come so soon after the close of the Fourth liberty loan, it is highly probable that the start towards maintaining per- manent airplane landing fields in many Indiana counties would have developed into a larger program. In those days it was believed firmly that Indiana eventually would become one of the central points in a vast country-wide air mail scheme, and even at the close of the war, the commercial advantages in the future of this airplane program were dilated on by Hoosier business men, who believed the future of airplanes had not then been realized. The program did its advertising work well. The future may give it more of a place of honor, economically and commercially.


13. A report prepared by Walker W. Winslow, who was connected with the Pub- licity Headquarters for the Northern Counties, discusses the work of aviators in the campaign at greater length. Fourth Liberty Loan Files.


14. Indianapolis News, September 28, 1918.


15. Carl Fisher in discussing the possibilities of airplane development in Indiana said: "The location of these landing places is the biggest thing Indiana has done during the war. We are now ready to say to the War Department at Washington that Indiana has not fewer than sixty places marked for safe landing of airplanes. No other state can begin to offer such facilities and I believe the air service at Washing- ton is going to see it. If our county seat business men will get behind this project


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INDIANA WORLD WAR RECORDS


"Religious Objectors" Buy Certificates of Deposit


The problems, revolving about the religious beliefs of sev- eral sects in various parts of Indiana, caused Loan officials no little difficulties throughout the war. In many counties groups of "conscientious objectors", sometimes called "re- ligious objectors", were found who were opposed to the pur- chase of Liberty bonds. The influence of these groups was felt in an ever-widening sphere, until something had to be done to counteract it.


It was realized early that ordinary methods used in creating public sentiment would do little good in such situations. Sev- eral different methods were devised by county loan commit- tees, in co-operation with state executives, for dealing with such problems. In some few instances the stirring appeal of certain Loan leaders was sufficient to compel the religious ob- jectors to cease their opposition, but such instances were more or less rare.


Finally it was decided to call a conference at South Bend, Indiana,-since a large per cent. of the Mennonites in the state lived in the northern tier of counties-at which repre- sentatives of the Mennonite church, the county chairmen of St. Joseph and Elkhart Counties, and certain bankers were present. The conference was held on September 13, 1918, . and the results of that important meeting clearly demon- strated that the members of the Mennonite and Amish churches would readily subscribe for their quota of bonds if only it could be shown that in so doing they were not contribu- ting directly to the support of the war.


Arrangements were finally made whereby the members were permitted to subscribe for certificates of deposit at the banks in South Bend, Mishawaka, Goshen and Elkhart. It was agreed that the certificates of deposit should run for a period of ten years and bear interest at the rate of 4 per cent. and that the money thus invested should be, in turn, invested in Liberty bonds by the depository banks.


That the representatives of the Mennonite church were will- ing to contribute their share in the work of supporting the


and move to make the fields permanent and keep them marked Indiana will step right out in front in aviation progress. We must get the jump on the other states and we have found the opportunity through the success of these Liberty Loan flights." This prophecy did not come true. Following the signing of the Armistice, interest in the commercial use of airplanes ceased to develop. The landing fields were plowed up and again converted into farm lands.


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THE WAR PURSE OF INDIANA


government is further shown by the action taken at this con- ference whereby they agreed to furnish the chairman of the Liberty Loan committee in South Bend with the names and addresses of their people, as well as the members of the Amish church in Elkhart County. In addition to furnishing the names of these people residing within these counties, they also agreed to assist the Liberty Loan chairman in placing a valuation on the property of the members in their own church, and in determining the allotment of the certificates of deposit that each member should buy. To further aid in the work of selling the certificates of deposit, the committee of the Men- nonite church pledged its support in soliciting the members of the church for subscriptions in the campaign. The re- sults of this work were turned over to the township chair- man, who in turn reported the total subscriptions made to the county chairman of the Liberty Loan committee.16


The advertising in connection with the Fourth liberty loan drive as well as the preliminary educational work had been planned so that everything would be in readiness by the date of the opening, September 28th. On September 14th, two weeks before the opening, George C. Forrey, chairman of the state speakers' bureau, announced the names of speakers from state headquarters that were to carry the message into every part of the state. Included in this group were the names of Senator James E. Watson, Albert J. Beveridge, Samuel M. Ralston, Henry Spaan of Indianapolis, George M. Barnard of Newcastle, Bishop William F. Anderson of Cincinnati, Ohio, Bishop Joseph M. Francis of Indianapolis, and others. Many prominent speakers from outside the state including members of Congress, returned soldiers, and other war workers ap- peared on Indiana platforms everywhere to arouse the work- ers to the importance of piling up a big subscription early in the campaign.


The schools of the state were again enlisted in the Loan campaign and served as a base for distributing much of the educational material.


Stirred by appeals from such religious leaders as the Rev. Allan B. Philputt of Indianapolis, chairman of the committee on public morals of the State Council of Defense, the Rt. Rev. Herman Joseph Alerding, of the Roman Catholic diocese of


16. For a copy of the memorandum of the conference proceedings, see Files Fourth Liberty Loan.


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INDIANA WORLD WAR RECORDS


Fort Wayne, Bishop Joseph Chartrand of the Indianapolis diocese, and other Protestant and Catholic leaders, the clergy of the state responded enthusiastically to the appeal for spreading the gospel of the Liberty Loan. The Rev. Victor J. Brucker again served as the representative of the Loan head- quarters for the Catholic interests of the state.


Women's Part in the Fourth Loan


The women of the northern counties held preliminary meet- ings in Fort Wayne at the call of Mrs. McCulloch during the middle of September. Prior to that time the women county chairmen for the state had been named. In a few instances these chairmen were changed during the campaign, but prac- tically all of them served throughout. In the Fourth loan campaign the woman's organization united their forces with the men's committee and worked jointly in selling the bonds. Mrs. Josephine Herschell issued a bulletin dated September 23rd, just five days before the start of the drive in which she announced that :


"As the American troops in France were brigaded with our allies in order to secure the greatest possible efficiency, all thought of credit being left out of the situation, so Indiana women are to be brigaded with men generally throughout the state in the Fourth Liberty Loan drive that Indiana's quota of the bond issue may be sold as quickly as possible and with the minimum amount of duplication of labor. Formerly the women worked in open territory, using every means to pile up a huge total for their organization. The Woman's Committee will be no less active in the Fourth loan. It will work in close co-operation with the Men's committee, and credit will be shared on a 'fifty-fifty' basis".17


The Woman's Franchise League with an army of more than two hundred Liberty Loan captains again took up the task of selling bonds in the Fourth campaign. In a letter sent out by Mrs. Katharine C. Greenough, Chairman of the Loan commit- tee, dated September 18th, 1918, it was announced that the state organization was pledging its entire resources to the suc- cess of the Fourth loan drive.18


17. Files Fourth Liberty Loan; bulletin dated September 23, 1918.


18. Indianapolis News, September 18, 1918.


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THE WAR PURSE OF INDIANA


New County Plans Adopted


The 'Volunteer Plan' was used during the Fourth loan in several counties with signal success. In Bartholomew County this plan was particularly successful, and during both the Fourth and Fifth loans the first day of each campaign was set aside for the purpose of permitting voluntary subscription. The plan was largely advertised throughout the county as 'Volunteer Day'. Applications were placed in each household of the county about a week prior to the opening of the Fourth loan campaign. These were filled out voluntarily, and on the first day of the drive they were voluntarily returned to the Liberty Loan workers, and thence turned over to the county chairmen. Bartholomew County had the honor of going 'over the top' during the first day of the drive without soliciting a single subscription and without any subscription from any of the banks in the county.19




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