USA > Indiana > The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war > Part 15
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The organization task for the Victory loan probably was the hardest that was accomplished by the Loan executives in 10. Correspondence Fifth Liberty Loan Files, letter dated March 12, 1919.
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Indiana. And the task did not become easier as the new county chairmen sought to rally again the old war workers in their respective counties. Finally, however, the organizations grew into form again, and the slogan on Beneker's famous Victory loan poster, "Sure, We'll Finish the Job", became in- deed, the spirit of the last campaign. Finally it became nec- essary to call in some forty new county chairmen in the north- ern part of the state to help finish the Victory campaign. Almost totally new types of appeal to the citizenship were nec- essary for the success of the Victory loan, and the question of terms of the bonds became predominant early in the prepa- ration for the Loan.
Loan Workers Demand Bonds Bearing High Interest
Between the close of the Fourth and the opening of the Fifth Liberty Loans, Carter Glass of Virginia, had been named by President Wilson to succeed William G. McAdoo as Sec- retary of the Treasury. Mr. Glass steadfastly contended that the terms of the last Loan should not be modified to a basis of investment advantages solely, but should be kept as nearly coordinate with former issues as possible, trust being placed again entirely in the patriotism of the people of the nation for the success of the final offering.
Many did not share the Secretary's view, and in Indiana the feeling was widespread that the final bonds should have such attractive investment features that they would sell at least partially on an investment basis, and partially again, on the patriotic basis. This conflict of opinion between the Sec- retary of the Treasury and many active executives in the Loan organizations throughout the country came very clearly to the fore during a conference of Loan executives from all states in the Seventh Federal Reserve District, held at Chicago, March 21, 1919.
At a dinner attended by Secretary Glass, and hundreds of Loan executives from Indiana and other states in the Central Northwest, Mr. Glass strongly opposed any plan of increasing the interest rate on the forthcoming bonds to a figure like 5 per cent., declaring that "We're not going to approach this last Liberty Loan on a commercial basis." He was pointedly opposed at that same dinner, by Abner Larned, of Detroit, who declared that "whatever the rate of interest is that is paid to the 20,000,000 American homes, where bond sub-
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INDIANA WORLD WAR RECORDS
scribers loyally support the Government, I, for one, will not begrudge it to them."11
It was apparent, in those days before the Victory loan terms were announced in Indiana, that Loan executives everywhere hoped for a final Government offering that would appeal to the investor not alone on the patriotic basis, but as well on a basis that would compare favorably with other types of nor- mal investment. It was clearly the feeling among Hoosier Loan executives that a supreme financial effort-particularly if the amount involved were to be near the total of the Fourth loan-should be built on bonds that would seek a higher level on the aftermarket than had previous issues.
On the day preceding the Chicago meeting of the Loan ex- ecutives, Will H. Wade, Chairman of the Indiana Loan Head- quarters, wrote a letter to C. H. Schweppe, campaign director for the Seventh District, in which he said:
"In regard to the Victory Liberty Loan, we feel that there should be a 5 per cent. taxable note and either a 334 per cent. or 4 per cent. tax-free note issued in order that the Loan in Indiana may be a success.
"The common people, including the farmers, must be given a favorable interest return in order to induce them to invest their money in Liberty bonds at this time. Likewise the man of large means must be given a favorable, tax-free investment. We must appeal to both classes of investors through a patri- otic appeal, plus a favorable investment yield."12
For days uncertainty prevailed. Loan leaders in Indiana fully expected a call from the U. S. Treasury for five or six billions in bonds. They were agreeably surprised when the announcement finally came that the Loan was to be for four and one-half billions ($4,500,000,000) and that its terms were to be so favorable that the bonds probably would top the entire Liberty Loan market.13
11. Indianapolis News, March 22, 1919. Chicago dispatch.
12. Files Fifth Liberty Loan, letter dated March 11, 1919.
13. It is pertinent to note here that the Victory notes,-for they were issued in the form of relatively short-term convertible gold notes,-did top the Liberty Bond market, and continued to do so practically until their maturity. The form of the notes was set out as follows: "The Victory Liberty Loan, which will be offered for popular subscription on April 21, will take the form of 434 per cent. three/four year convertible gold notes of the United States, exempt from State and local taxes, except estate and inheritance taxes, and from normal Federal income taxes. The notes will be convertible, at the option of the holder, throughout their life into 334 per cent. three/four year convertible gold notes of the United States, exempt from all Federal, State, and local taxes, except estate and inheritance taxes. In like manner the 334 per cent. notes will
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THE WAR PURSE OF INDIANA
W. A. Heath, Chairman of the Federal Reserve Board of Directors of the Seventh District, wrote Mr. Wade under date of April 4, naming the Indiana state chairman as a member of the district quota committee, and asking him whether Indiana would be satisfied to accept the same percentage (121/2 per cent.) of the total quota allotted to the Federal Reserve Bank as the state had been given in the Fourth loan. Mr. Wade replied that Indiana would be content with the same per- centage. In Mr. Heath's letter the various percentages of total quota for each division in the district were set out as follows: Chicago, 29 per cent .; Illinois (outside of Chicago), 13 per cent .; Indiana, 121/2 per cent .; Iowa, 17 per cent .; Mich- igan, 17 per cent., and Wisconsin, 111/2 per cent.14
As in previous Loans a system of utilizing the various news sources in the northern counties for the assistance of the southern counties of Indiana, and vice versa, was put in oper- ation through co-operative efforts between Mr. Sonntag and Mr. Wade. Mr. Wade wrote to Mr. Sonntag, under date of April 8:
"As in the past, our publicity department is making no boun- dary lines so far as the state of Indiana is concerned, in re- gard to efforts to advertise the Victory loan everywhere. The Farm Bureau and various other departments of our headquar- ters are sending material to attract attention to the Victory loan in the twenty-four southern counties as well as the sixty- eight northern counties. We know that the southern counties, under your leadership, will go over the top in the Victory loan the same as in the past four Loans."15 W. W. Ross, of Evansville, was named by Mr. Sonntag, to direct publicity in the southern counties, and his co-operation with the publicity director for the northern counties was constant.
The women of the state again were to take a very definite place in the campaign. Mrs. McCulloch wrote to Mr. Wade on December 31, 1918, saying that she had just been notified by the Woman's Liberty Loan Committee, that the woman's organization "is to follow the line of the men's organization
be convertible into the 434 per cent. notes."
The notes of both series were dated and bore interest from May 20, 1919, and the maturity was given as May 20, 1923. Interest was payable semi-annually June 15 and December 15, and at maturity. It was announced that allotments would be made in full up to and including $10,000 subscriptions. Redemption, June 15, or December 15, 1922, was optional. The announcement carried the statement that "This will be the last Liberty Loan." (Page 50, U. S. Treasury Report, 1919.)
14. Files Fifth Liberty Loan, letter dated April 4, 1919.
15. Ibid. Letter dated April 8, 1919.
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INDIANA WORLD WAR RECORDS
and that states which lie in two Federal Reserve Districts are to be treated as separate states." When the Victory loan opened Mrs. McCulloch again served as chairman of women for the northern counties and Mrs. Fred Lauenstein as chair- man of women for the southern counties. The women's or- ganizations everywhere practically merged with the men's and all worked as a unit.
One important publicity feature emphasized by the Federal Bank officials of the Seventh District prior to the opening of the Victory loan should be mentioned here. They deter- mined definitely to show the editors of newspapers throughout Indiana, and the other states of the Seventh District how much they appreciated the powerful efforts of the press, made dur- ing the preceding Loans. The newspaper men were invited to meet in Chicago on April 11th. The meeting brought to- gether several hundred editors from Indiana and the other states of the Seventh District for an "inspiration" meeting. The Indiana meeting, held at The Playhouse on the morning of April 11th brought together a group of famous Hoosiers and ex-Hoosiers, prominent in the newspaper world. Among those on the program were: John T. Mccutcheon, famous cartoonist; Kin Hubbard of "Abe Martin" fame; S. J. Duncan- Clark, War Editor of the Chicago Post; George I. Christie, Assistant to the Secretary of Agriculture, and others.
Publicity the Keynote of Victory Loan Success
In none of the Liberty loan campaigns was more attention given to publicity than was given in the Victory loan drive. It was realized early in the preparations that a new type of appeal would have to be made in order to overcome such apathy as might have developed during the aftermath of the Armistice celebration. America's returning victorious sol- diers formed a splendid object about which the general ap- peal could be made, and this phase was utilized to the fullest throughout the state. Men in khaki, from Loan speakers' rostrums, very easily could drive home the fact that "the job is not over". On April 5th it was announced from the woman's Loan publicity headquarters in Indianapolis, that women who had seen service in various branches overseas, would be utilized as Loan speakers throughout the state. George C. Forrey and Jesse E. Eschbach, who took charge of the state speaking campaign for the Victory loan, set to work early to provide an extensive speaking program.
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THE WAR PURSE OF INDIANA
Indiana's largest single unit of fighting men-the famous One Hundred and Fiftieth Field Artillery, of the Rainbow Division-came home to Indiana, as the center of the state's Welcome Home Day, on May 7, 1919-just at the close of the Victory loan. This great Victory celebration, held in Indian- apolis, but participated in by the entire state formed a patri- otic interest point towards which the Victory loan campaigns everywhere were built, and undoubtedly it was most effective propaganda for the entire campaign.
Supplementing the general Home-coming appeal were many spectacular programs to build up the sentiment of the people of Indiana to a pitch that would insure success of the final effort. The use of airplanes again as a publicity feature had lost some of its attractiveness, principally because it was no longer new. The federal government came into the breach, with war trophies of many types, made available for use as Loan propaganda.
In particular was it believed that the use of the newest de- velopment in warfare-the fighting tanks-as a vehicle for the spreading of Loan interest would be valuable and these monster engines of destruction, furnished by the war depart- ment, virtually took the place of the airplane campaign of the Fourth loan.
That the entire set of schedules for these new fighting ma- chines through Indiana's counties broke down time after time, and that eventually they could not reach many points in the state where they were to have been exhibited, did not detract from the original plan to utilize them as a means of news- paper and other publicity.
Walker W. Winslow, of Indianapolis, for the state publicity department, had charge of the tank program eventually in In- diana and handled its ever-increasing list of difficulties. Three of the camouflaged war machines eventually came into the state, under the operation of groups of returned fighting men, who were to "tour" the tanks throughout practically all Indi- ana counties, as a Loan feature.
It was impossible, however, to observe a regular schedule in distributing the tanks. One of the reasons was inclement weather. Heavy rains fell almost daily during the month of April, 1919. And it was early discovered that the big "cater- pillars" were wracked to pieces as soon as they began travel- ling on paved streets or hard-surfaced roads. The efforts to
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INDIANA WORLD WAR RECORDS
have them keep to the original schedule through all county seat towns proved to be fruitless. The motors developed every type of trouble known in the mechanical ill-health list. For weeks one of the big fighting machines lay mired on a hill near Gosport, Indiana, and another remained in Fowler, Indiana, for many days, while repairs were made.
Finally Mr. Winslow obtained army trucks from Indiana army stations and sought to carry out revised schedules by hauling the tanks between towns and cities on these trucks. This plan worked fairly successfully, but was marred by the accidental death May 2, 1919, of one of the tank operators, en route between Kirklin, Indiana, and Indianapolis.16 Another of the tanks fell down a forty-foot embankment be- tween Williamsport and Covington, during its tour of western counties. Fortunately its operators were not injured.
As proof of the fact that the tank program was a success from the standpoint of publicity, the following news item from Greencastle, Indiana, is cited :
"Much after the manner that a hippopotamus would take to water after a long spell on land, a whippet tank, the model of which played an important part in the world war, en route from Greencastle to Spencer, entered a small pond near Clov- erdale yesterday, frolicked around for a time, climbed a log, turned around and continued on its way in the interest of the Victory Liberty Loan. Residents of Cloverdale witnessed the performance in open-mouthed wonder."17
The climax of the tank programs eventually came when two of the war monsters were pitted against each other in a "race" around the base of the Soldiers' and Sailors' Monument in In- dianapolis. Mr. Winslow and Charles Becker, of Indian- apolis, were the competing "drivers" in that contest, and the tanks, because of the excessive fractiousness that had charac- terized their performances throughout the state, were named "Hell" and "Highwater". The writers of the time gave neither "varmint" the victory in that race.
One of the spectacular features adopted during the cam- paign of education for the Victory loan, was that of running
16. Private T. Leslie Heyland of Chicago, and Richard Bernish, both members of the United States Army Tank Corps, were transporting a tank by means of trucks, and had reached a point two miles south of Kirklin, a short distance cast of Frankfort, when one of the trucks went into a ditch. In maneuvering to pull the truck out to the road, by means of the other truck, Heyland was accidentally crushed and killed between the radiator of one truck and the rear end of the other. He died a soldier's death, just as truly as any man who fell on foreign fields.
17. Indianapolis News, April 11, 1919.
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THE WAR PURSE OF INDIANA
war exhibit trains through the different cities of the state. They contained war trophies from many battle fronts and great crowds gathered to view the relics, wherever the train stopped.18
The Great Lakes Naval Training Station Band, again toured the state and was the Liberty loan stimulator that it had been in previous Loans.19 All of these features were oper- ated with much more smoothness during the Victory campaign than before, because of the experience the whole Loan organ- ization had gained from former efforts of a similar char- acter.
Indiana's Quota in Victory Loan
The opening date of the Victory loan campaign was April 4th, and the drive closed on May 10th. Eventually Indiana's quota for the sixty-eight northern counties in the final Loan was fixed at $81,562,500, or approximately 13 per cent. of the banking resources of these counties. The quota for the twen- ty-four southern counties was announced as $13,891,700, by Mr. Sonntag. Of this amount Vanderburgh County was given $4,612,250.
Lewis B. Franklin, head of the War Loan Organization, is- sued a statement just before the Victory loan in which he pointed out: "In reaching a determination as to the various characteristics of the Victory Liberty Loan, particularly as to rates of interest on the notes and the limitation of the amount, and the rejection of oversubscriptions (the Treasury had an- nounced it would reject oversubscriptions above the four and one-half billion mark) the Secretary of the Treasury had in mind particularly the great importance of insuring a wide distribution of these notes to real investors so that they could be paid for out of present or future savings and consequently without creating any strain on the banking resources of the country."
Mr. Franklin continued: "The terms, as announced, have met with universal approval (which was very generally true in Indiana) but it should be impressed upon every Liberty
18. George H. James, of Brazil, publicity. chairman for Clay County, was advance agent for the train through the northern Indiana counties.
19. Fred Thomas, of Greensburg, again acted as the advance agent, and Charles A. Garrard acted as Director. The Rev. Louden A. Harriman and Rev. Owen D. Odell, of Indianapolis, both of whom had been active in war service during the past eighteen months, accompanied the band on its trip throughout the state and spoke for the success of the Victory loan.
11-21521
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Loan committee in the country that the real task before us is not accomplished simply by raising the specified amount of money. It is important at this time with the dis- solution of the great volunteer Liberty Loan organization after the close of the campaign, that everything possible should be done to prepare the way for an absorption of the oversupply of government bonds which has been the chief reason for the decline in the price of the old issues and the plan of the Sec- retary was adopted with particular reference to this situa- tion."20
The Victory Reveille, issued in the interest of the Govern- ment Loan Workers of the Seventh Federal Reserve District, on April 14, 1919, emphasized these points in a discussion of "Short-Term Notes vs. Bonds", when it quoted a high execu- tive of the Federal Reserve Bank on the attractive features of the short-term offerings as follows :
"The banking institutions of the country are now carrying a very large amount in total of Government war Loans of previous issues, and it would be a serious mistake to ask them to add to their present holdings a very large share of the com- ing issue-a mistake which would be reflected in the curtail- ment it would necessitate in lines of commercial credit to firms, corporations and individuals.
"It is of the utmost importance that banking resources be kept liquid for commercial requirements, in order that the process of readjustment now going on, and a return to more nearly normal pre-war conditions may be expedited.
"The war has taken comparatively little money out of the country, and the bulk of the war loans has gone into high wages to labor and large profits to productive industry. Sav- ings deposits have grown tremendously and other general banking deposits have at least shown no decrease.
"The money is here and the appeal in the coming Loan must be made to those who now possess it. Because of their short term and the satisfactory rate of interest which they will bear, the new notes will appeal to business men and our great com- mercial interests, as well as to investors generally even with- out the pressure of the war in progress. The Loan will go well, but it is absolutely essential to realize for it the widest possible measures of distribution."21
20. Files Fifth Liberty Loan-Newspaper Publicity Leaflets.
21. Victory Reveille, April 14, 1919. Files Fifth Liberty Loan.
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THE WAR PURSE OF INDIANA
Indiana's Soldiers Leave the Rhine
The second anniversary of America's entrance into the war found Indiana more or less quiet-none of the wild enthusi- asm for success that had characterized the first anniversary, a year before. People everywhere were done with war and, except for the preparations for the Loan, sentiment was wide- spread that the black days of the conflict should be blotted out for the time being, at least until the boys came home. In- diana, to be exact, was engrossed just then in preliminary reconstruction.
A cable dispatch of special interest to all Hoosiers was that received on April 6th, announcing that the first train bearing men of the Rainbow Division pulled out from the occupied territory along the Rhine on the preceding day. Everyone, and particularly parents who were honored by having a son enrolled in the One Hundred and Fiftieth Field Artillery (In- diana's unit of the Rainbow Division), began to wonder just when they would again arrive in America, and more especially when they would set foot on Indiana soil. The announced home-coming of the One Hundred and Fiftieth Field Artillery served to keep alive interest in war talk, and was made use of by the Liberty Loan workers during the Fifth campaign.
Victory Bond Drive Opens
It appears that the first Victory loan subscription recorded in the Indianapolis press, reached state Loan headquarters April 4, from a commercial concern in Baltimore. The Crown Cork and Seal Company had subscribed $3,000 through the Merchants National Bank, of Indianapolis.22
Fountain County, at the call of Dan C. Reed, Chairman, held a parade of men in uniform and a Liberty Loan meet- ing, to "begin the campaign" as early as April 8th. Dela- ware County Loan officials, in conference with state Loan headquarters, April 9, announced that the county would set one day early in the campaign for a volunteer day.
Southern counties of the state also were in full swing of Loan preparations as early as April 9th, Jackson County hav- ing planned one of the first receptions for home-coming sol- diers and sailors, as an opening drive for the Loan campaign.
Chairman Sonntag, of the southern counties, called together the county chairmen and some three hundred workers of the
22. Indianapolis Star, April 5, 1919.
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Liberty Loan organization for a meeting in Evansville on April 14th, and discussed plans of the forthcoming campaign. W. R. Compton, Director of the Eighth Federal Reserve Dis- trict, and other officials of the Federal Reserve Bank met with the southern Indiana workers.
In Marion County an easy payment plan for the Loan, whereunder $50 bonds could be purchased from the banks for "$2 down and $1 a week", was announced in the papers of April 10th. All the banks of the city of Indianapolis had been represented at a meeting at which this agreement was made.
On April 12, it was announced that the theme of the Marion County drive would be "Mop Up". The Yankees in the trenches of France had coined the words to describe the pro- cess of eradicating Germans from captured trenches. Fred Hoke, the new chairman of the executive committee, which was operating the Marion County Legion in the drive, said:
"The public realizes that it is necessary to support this Loan. We will not quit until our task is finished and until we, too, are able to say : 'We have mopped up'." Monu- ment Circle, in Indianapolis, was dedicated as "Victory Cir- cle" for the Loan campaign.23
Daily events were happening which did not allow the peo- ple to forget the war. As late as April 11th, leading daily newspapers of Indiana cities carried the names of forty-one Hoosiers in that day's casualty list. Army transports bear- ing the returning soldiers of the Expeditionary Forces, ar- rived daily, and on April 15th, the famous Pershing Head- quarters Band was announced as being en route to America. This band later toured the country as one of the publicity fea- tures of the Victory loan campaign, and appeared in Indian- apolis on April 26, 1919. On the same day it was announced in Washington dispatches that the Lilly Base Hospital, Num- ber 32, an Indiana unit, had sailed from France for the United States. These and similar events kept alive the war fervor of the people of the state.
The second week in April, 1919, saw the Liberty Loan workers ready to start the last great financial drive. On April 15th word was received from Angola, Indiana, quoting Chairman Will H. Wade, of the northern counties, who was then in Steuben County, as saying that the county was the
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