The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war, Part 12

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 12


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Similar success attended the 'Volunteer Plan' in St. Joseph County, under the direction of F. A. Bryan, County Chair- man. Late in July, 1918, Mr. Bryan started on a plan with the view of obtaining comprehensive information on the ability of citizens in South Bend and St. Joseph County to purchase Liberty bonds. The plan provided for a systematic tabulation of data on individual cards that were filed alpha- betically in the office of the county committee. A special vol- unteer button was prepared and was awarded only when the individual purchased the amount of bonds that had been agreed upon by the committee. If the purchaser tendered a subscription less than the amount agreed upon by the com- mittee, then the word "insufficient" was marked on his card, which meant that this individual was to be seen personally and given an opportunity to increase his subscriptions.


The plan as a whole worked most successfully and while it is impossible to determine with exact certainty the number of cities and counties that went 'over the top' by reason of this plan during the first day of the drive, yet there were a suf- ficiently large number of reports received at state headquar- ters to show that the state and county Liberty Loan commit- tees accepted this plan as one of the most satisfactory plans of conducting a bond sales campaign.


19, Leonard L, Campbell's Manuscript Report, Fourth Liberty Loan Drive.


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INDIANA WORLD WAR RECORDS


Another new plan of checking up individuals was set out concretely by the Marion County executive committee, in a statement issued September 18th, in which the committee pointed out that :


"Under the plan adopted for the distribution of the Fourth loan no man can put off the selling organization by saying that he bought through this lodge or that church society, or that his wife bought the family bond at home." Each per- son in the county was to be the object of personal solicitation, under the Marion County plan, with an "army" of 10,000 per- sons doing the soliciting. An accurate record of every man and woman in Indianapolis, with a list of all bond sales made, and a list of those who did not buy, was the goal of the big organization in the capital county. The Marion County slogan for the Fourth loan, was: "Double-Quick".20


Southern Counties Prepare


The southern counties entered the Fourth campaign with the same determination to oversubscribe their quota as had characterized the preceding Loan drives. On September 18, Marcus S. Sonntag, chairman of the twenty-four southern counties, gave out a statement in the Indianapolis papers in which he declared that several of the counties were then ready to pledge all of their quotas on the first day. He predicted that they would all go over the top during the first week of the drive. Many of the banks, he added, had already pur- chased double their apportionment of treasury certificates of indebtedness in anticipation of the new Loan, which would hasten the achievement of a 100 per cent. subscription.21


Governor Goodrich issued a proclamation setting aside Sun- day, September 22nd, as "Heroes Day" in Indiana. Every- where in the state that day was set aside to pay tribute to the ever lengthening casualty lists which then contained daily many names of Indiana boys. Meetings dedicated to those who had fallen in battle were held throughout the state, and stirring addresses were made calling upon citizens to rally to the support of the Liberty Loan drive in an effort to "carry on" in that great work to which these brave Hoosiers had given their lives. Vice-President Marshall and Frederick Landis made memorial addresses in Indianapolis, and speak-


20. Indianapolis News, September 18, 1918.


21. Indianapolis Star, September 19, 1918.


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ers were provided for almost every other city throughout the state. The psychological effect of these great gatherings throughout the state was powerful on the subsequent week of preparation for the Loan campaign.


Influenza Epidemic and False Peace Reports Slacken Drive


Two serious handicaps faced the leaders of the Fourth loan drive during the opening days. The influenza epidemic was upon the state, and in numerous places public meetings were placed under ban by the Boards of Health. This seriously dampened the ardor and enthusiasm for the loan, but the leaders were determined that the public should know the truth in regard to the government's need of more money, and called upon newspapers and advertising agencies for even greater service than had been rendered during the preceding loans.


The other handicap which the Loan leaders had to face was that of combating false reports sent out by enemy agents that Germany was asking for peace. Everywhere throughout the state the people seemed to be united as one in opposing any premature peace or in accepting any terms short of absolute and unconditional surrender. Governor Goodrich voiced this sentiment for the state in a telegram to the New York Tribune, in which he said: "All our people, regardless of politics, approve the reply of President Wilson to the Austrian note. I am heartily in favor of our national policy of peace only with victory."22


This message expressed clearly the sentiments of Hoosiers generally, Democrats and Republicans alike, on the efforts towards a "negotiated peace" which the Central Powers then were making. And it was this same sentiment that helped Indiana's population to oversubscribe the war's greatest finan- cial offering.


Another message similar to this went forth from Indiana on the same date. The National War Mothers of America, in convention at Evansville, representing thirty-five states in the Union, wired President Wilson and cabled General Per- shing, as follows: "Millions of War Mothers of America stand loyally by you in your desire to make no peace until Germany and all her allies surrender unconditionally."23


22. Ibid.


23. Ibid.


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INDIANA WORLD WAR RECORDS


George Ade, famous Hoosier humorist, discussed the "peace drive" of that particular time in about the same sort of men- tal attitude that all Hoosiers had then, except that no one else but Mr. Ade could have put it just this way :


"A German, in a backroom somewhere, drew up a pro- gram of the war as it was to be. France was to be sent sprawling with one blow of the fat fist. Then clumsy Russia was to be subdued. After that, haughty England, and then, bumptious America. A German picked out the pretext for the war. A German whispered to Austria the words which made conflict inevitable. A German ordered the invasion of Bel- gium. A German sighted the torpedo at the Lusitania. The Germans claimed all of the early privileges in the present controversy.


"Now we (that is, the Allies) in all humbleness, calling at- tention to the fact that we were somewhat ignored at the beginning of the performance, claim just one right, or privi- lege, or inning, or whatever you choose to call it. To even accounts and balance the books, the Allies should be per- mitted to name the date on which the war is to end. Be fair, Germany, and grant us this one small favor; you, who have reveled in the initiative.


"And for goodness sake, don't hurry us. Don't be offering suggestions as to peace terms. Can't you see that we are busy? With our hands on our hearts, we assure you that in due time and proper season, the last shot will be fired and the long peace will be inaugurated. We are just as anxious for it as you are. Be reasonable. The war will terminate just as soon as you are licked to a frazzle."2+


Foreign Corporations Allocate Bond Sales to Indiana


Another elaboration of more or less spasmodic efforts in prior loans came in the Fourth campaign, when Robert E. Wilsey, a former Hoosier, then living in Chicago, again took up the task of stimulating large foreign corporations doing business in Indiana to allocate proper proportions of their bond subscriptions to those Hoosier counties in which their business lay. Millions of dollars of Indiana's subscriptions eventually came through this channel, where often before New York, Chicago or some other financial center had obtained all


24. Indianapolis Star, September 25, 1918.


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of the subscriptions of these concerns, simply because their executive offices were not in Indiana.


Much emphasis was laid on railroad subscriptions. At- tempts had been made during all the Loans to secure a pro- portionate amount of the subscriptions of railroad employes for Indiana localities, instead of allowing them to go through New York or Chicago banks, with resultant credit to those banks. In the Fourth loan, at least two railroads, the Wabash and the Lake Erie and Western, co-operated directly with the state and county Loan committees in allocating their em- ployes' subscriptions to the Indiana counties through which the roads operated.


A few examples of the success of Mr. Wilsey's plan may be referred to in passing. In Lagrange County early in the cam- paign the Wabash Portland Cement Company through a large subscription to the county's quota caused Leon Rose, the chair- man of the committee, to send a congratulatory message to Mr. Wilsey announcing that satisfactory arrangements had been made with the Wabash Portland Cement Company to enable the county to meet its quota.25


During the first week in October, Mr. Wilsey in a letter addressed to Mr. Wade, state chairman, assured him that each of the branch houses of the International Harvester Com- pany,-located at Terre Haute, Richmond, Fort Wayne, South Bend, Lafayette, and Indianapolis,-would subscribe $15,000 to the Liberty Loan fund, and the county chairmen had been advised of this fact.26


Another letter dated September 28th announced that Ar- mour and Company would give approximately $35,000 for the state of Indiana, $20,000 of the amount was to go to the In- dianapolis branch, and the remainder was to be allotted be- tween Muncie, Rochester and South Bend.27


Mr. Wilsey also approached the officials of certain big life insurance companies, certain manufacturing corporations, and other organizations. That he was successful in the gen- eral plan of diverting a large amount of corporation sub- scriptions to the state of Indiana is proved by the examples above cited. The exact totals diverted to the state, however, cannot be determined.


25. Letter of Robert E. Wilsey to Will Wade, dated October 8, 1918. Fourth Lib- erty Loan Files.


26. Files, Fourth Liberty Loan, letter dated September 28, 1918.


27. Ibid; letter dated September 28, 1918.


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INDIANA WORLD WAR RECORDS


Fourth Campaign Opens


The Loan campaign period actually began September 28th and closed October 19th. The United States Treasury asked for $6,000,000,000. Indiana's quota for the northern coun- ties was $108,750,000, and for the southern counties was $18,765,000, a total of $127,515,000. The general drive had been so planned by Loan executives that the educational work had been completed by the date of the opening of the Loan, September 28th. As will be shown later, the northern sixty- eight counties piled up a total subscription of $117,966,050, while the southern twenty-four counties took $20,672,700.


As early as September 17th communities in Indiana were subscribing for bonds and holding meetings, moving in parades and otherwise preparing to subscribe the new Loan quickly. Hope was expressed at various meetings that many of the counties would finish their work within the first week, and Mr. Wade several times expressed the hope that 80 per cent. of the northern counties would go over the top during the first week of the drive, or sooner.


On September 25, a report was received at the state head- quarters in Indianapolis from Whitley County announcing that a volunteer campaign there had already succeeded in raising $600,000 on a total quota of $900,000. On the night before the official opening of the drive H. D. McLallen, county chairman of Whitley County, telegraphed to Mr. Wade that: "Whitley County, Indiana, population 16,000, quota $900,000, is over the top with 5,000 volunteer subscribers."28 The county was chalked up as the first county, probably the first in the Seventh Federal Reserve district to go over the top.29


On the night before the opening of the drive two messages, one from Adams County, and the other from Union County, brought cheerful news. John Heller,-publicity chairman of Adams County, where the heavily German population in pre- vious Loans had made the flotations of the early issues often difficult,-telegraphed that the city of Decatur had already oversubscribed its allotment, and that the county would be


28. Files Fourth Liberty Loan, telegram dated September 27, 1918.


29. A coincidence worth noting here is the fact that Whitley County was the home of Vice-President Thomas R. Marshall, and in Labert St. Clair's history, The Story of the Liberty Loans, on page 64, it is recorded that the Vice-President of the United States purchased the first bond in the Fourth campaign at Washington, D. C., from Geraldine Farrar, famous opera singer. No date is given for this purchase, but there probably were not a few back home in Whitley County, Indiana, who would contest this honor with the Vice-President.


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over before the close of the first day. While this promise did not come true, nevertheless it added to the general feeling of optimism that everywhere existed. The other message was from Charles D. Johnson, Liberty, Indiana, chairman of the Loan committee in Union County, and announced that his county had pledged its entire quota of $400,000.30


Intense enthusiasm was apparent everywhere in Indiana on the opening day of the drive. Bells rang, parades were held in many towns and cities, and factories, mines and other businesses closed down for a holiday in many places. In de- scribing the enthusiasm attending the opening of the sales campaign, the Indianapolis Star of September 28th declared:


"From all indications the present Liberty Loan campaign has stirred up more real, heartfelt enthusiasm than any pre- vious Loan campaign in the state, and everyone knows the triumphant results of those other campaigns, when states, counties and cities, almost without exception, oversubscribed their quotas. Perhaps the enthusiasm that has been shown is due in part to the splendid victories of the American armies in France, for it is to make a continuance of such victories possible and bring the war to a speedy end, that is the aim and end of the Loan, and all the posters, pamphlets and other literature issued from Liberty Loan headquarters display the same spirit of the final victory to come."


By noon of September 28, five counties in Indiana were re- ported as having subscribed their complete quotas: Jackson, Knox, Kosciusko, Union, and Whitley. Knox County, with a quota of $1,830,000 had raised almost two million dollars by noon, according to a telegraphic report sent to the state head- quarters. Merle Gochenour, county chairman of Kosciusko, wired that his county had oversubscribed at 8:30 o'clock that morning.31 Walter J. Riley, East Chicago banker wired : "East Chicago's quota in the Third loan was $780,000. In the Fourth loan it is $1,750,000. We have made our quota and $1,250,000 more and are still going."32


John A. Ross, chairman for Clinton County, telegraphed that morning that the city of Frankfort had oversubscribed. George L. Laney, Parke County chairman, wired that Parke County, with a quota of $500,000, was almost across the goal line, but later difficulties arose in this county and it was


30. Telegram, Files Fourth Liberty Loan, dated September 27, 1918.


31. Telegram, Files Fourth Liberty Loan, dated September 28, 1918.


32. Ibid: telegram dated September 28, 1918.


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INDIANA WORLD WAR RECORDS


among the late ones of the state to oversubscribe, according to state records.


Emmett G. McQuinn, chairman of the Newcastle [Henry County] sales organization, wired that 4,000 volunteers in that community had subscribed for $400,000, or an oversubscrip- tion of $100,000. J. Lloyd Kimbrough, county chairman for Delaware County, wired: "The campaign is almost running away with us. The people consider the Fourth loan as a great privilege to take part in the war and it is unnecessary to urge them to buy bonds."33


Ten planes were in the air over various groups of Indiana cities that day, "bombing" the inhabitants with Liberty Loan literature. Many counties notified state headquarters that the campaign would not continue more than a week.


A report given out Saturday night, September 28, showed that six counties of the northern district had gone 'over the top' in the first day of the Loan, including Whitley, Union, Kosciusko, Madison, Lake and Newton, in the order named.34


Indiana's Greatest Day in War Financing


Incomplete returns from twelve of the sixty-eight northern counties, at the close of the first day's campaign, excluding Marion County's millions of dollars in early subscriptions, showed a total of more than twenty-one millions, which was by far the highest showing for first day results in any of the four campaigns. Many towns and cities sent in reports that first day, saying they had oversubscribed, and in some in- stances the reports were borne out by later figures, but in some instances the great increase in first-day sales merely formed bases of estimates that were not borne out when the subscrip- tions eventually were tabulated. The two weeks preliminary campaigning, the war fervor and the intensified organizations everywhere, together with the volunteer campaigns in many counties made that first day, without doubt, the greatest day in Indiana's war financing program.


33. Indianapolis Star, September 30, 1918.


34. The official record now available in Loan files, shows that Bartholomew County was the sixth one over the top, with Newton seventh. It is the impression of the author that Bartholomew's report was late in arriving, but was so authentic when received at headquarters that sixth place was given. In the final story of Bartholomew County's victory it was remarkable that, with one exception, not a single subscription was taken in the county before the opening day of the drive and full quota of $900,000 was subscribed before 6 o'clock that night. The exception was a subscription of $12,000 which was made by mail to Will G. Irwin, the county chairman. John E. Northway, of Columbus, publicity chairman, had much to do with the success of Bartholomew County's campaign,


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Morgan County with Karl I. Nutter of Martinsville, chair- man, was the eighth in the northern tier of counties to take its place of honor. Early reports from many counties re- ceived Saturday and Sunday, the first two days of the Loan, indicated that at least 50 per cent. of the total quota in Indi- ana had been subscribed.


Marshall and Monroe Counties were the ninth and tenth, respectively, in the northern district, to subscribe their allot- ments, late September 30, and the state headquarters closed that night with a total of $59,737,000 reported.


Vigo County had subscribed for $4,000,000 the first day on a quota of $5,400,000, it was reported. Many counties re- ported September 30, that they were nearing the goal, and hopes ran high that the northern counties would subscribe their total quota within a week.


Senator James E. Watson, on his return to Washington from his speaking tour in Indiana, declared that the biggest Loan of all would be oversubscribed in record time in Indiana :


"Every blessed person in Indiana is in the war with heart and soul", he said. "Surely the population of no country ever was so united on a proposition as are the people in this war. The spirit is simply wonderful."35


News dispatches on October 1, reported that Scott County, in the southern district, had oversubscribed its quota of $102,000 by 30 per cent., and expected to roll up an oversub- scription of 60 per cent. The splendid results in that county had been obtained largely by the volunteer campaign.


At midnight October 1, the northern counties had sold a total of $70,812,950. Elkhart County had joined the list of honor counties, the eleventh to "go over". Owen County, with Hubert Hickam as chairman, and Franklin County, with John C. Shirk as chairman, were the twelfth and thirteenth coun- ties in the northern tier to oversubscribe, on October 2nd.


By this time a period of recoil from the tremendous activ- ities and great totals of the first few days had set in through- out the state. The same condition existed in the southern counties, where only approximately one-half the total quota had been reported.


Several factors were responsible for the slackening in inter- est. One of the chief reasons was the heavy toll which the in- fluenza epidemic then was reaping in different counties. In


35. Indianapolis Star, September 30, 1918.


9-21521


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INDIANA WORLD WAR RECORDS


Marshall County, Clinton Bondurant, chairman of the Liberty Loan committee, was afflicted, and urgent measures had to be taken to rally the county to raise its quota.


In Miami County, Dudley H. Brattin, of Peru, who had handled the Third loan, became ill just as the Fourth drive was getting well under way, and the Miami County committee had to undergo complete reorganization. O. F. Rhodes, as- sistant chairman, took charge of the drive during the remain- der of the campaign. Realizing the handicap which he would have to overcome, Mr. Wade, state chairman, who had been present at a meeting of the workers in Peru on October 5th, addressed a letter to Mr. Rhodes after his return to In- dianapolis, in which he urged him to use all available means to arouse an interest in the campaign. Mr. Wade pointed out that it was very evident that at the meeting on the preceding day those present realized that the drive had not been a suc- cess, and that practically all were ashamed of the results. He suggested to Mr. Rhodes that in the event any of the indi- viduals who had been solicited "failed to come across" that a quota ten times the amount of the war chest subscriptions be levied upon them.36 The reports tabulated by the Federal Reserve System show that Miami County was the sixty-sec- ond in the state to meet its quota, and that the final sub- scription was placed at 116 per cent.


"Peace Feelers" Again


Another factor responsible for slowing up the drive after its unusual beginning was the peace "feelers" which the Ger- man Emperor continued to send out during the first days of October, 1918. Determined efforts were made by the Liberty Loan committees on every hand to prevent the stampede of the war-wearied public into a feeling of approval of anything that might resemble a "negotiated peace." On October 8th, the following warning went out from state headquarters against the peace drive :


"The war is not over and neither is the Fourth Liberty Loan. Don't let the Kaiser fool anybody in Indiana with this peace offer. There are a number of things he would like to accomplish by such a shallow effort as he is making now- and one of the more important of them would be the slowing down of America's great Fourth Liberty Loan effort. Let


36. Letter of Will H. Wade, dated October 6, 1918 ; Fourth Liberty Loan Files.


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us take new heart and make the Indiana answer to the Kaiser sting. Let us buy Liberty bonds 'till it hurts,-him !"37


This warning issued from the Indiana state headquarters, supplemented by the statement which Secretary McAdoo had sent out on the preceding day in which he declared that "our boys in the trenches are not going to stop fighting because the enemy is on the run", did much to bolster up the now weary war workers, and gave them a renewed inspiration for continuing the drive.


At this time it began to appear that Marion County's huge task would hold the entire state back for days in the subscrip- tion of its quota. On October 1, the state blackboard carried Marion County's subscriptions as slightly over six millions, although newspapers indicated that estimates placed the coun- ty's sales then at nine millions. The big "army" of Loan workers in the capital county was utilizing every moment of the day and night to push up the totals.


The Indianapolis Star of October 3, recorded that a total of 40,152 subscriptions had been tabulated at the close of busi- ness the night before in the clearing house in Indianapolis. The county was slowly nearing the half-way mark on its big total, but its campaign gradually was slowing down after the first big rush of subscriptions. Appeals were being made to men and women of means to subscribe larger amounts.


On October 3, the Fletcher American Bank proposed that the banks in Indianapolis lend money to bond subscribers at 414 per cent., the same rate of interest the bonds carried. Most of the other banks agreed to this plan to speed up the campaign.38 Spurred on by the promise which the banks of- fered, the committee determined to redouble its efforts. In- dividual appeals were made to citizens who were in position to increase their subscriptions, and a campaign of wider pub- licity was started. Marion County still was struggling along with allotment card systems for the farmers of the county,




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