USA > Indiana > The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war > Part 19
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Randolph County, Mrs. Grant C. Markel; Ripley County (no organization). Rush County, Mrs. Cora M. Stewart.
St. Joseph County, Miss Virginia Tutt; Shelby County, Mrs. Stanley Jones; Starke County, Mrs. A. Knosman; Steuben County, Mrs. Sam E. Brooks.
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THE WAR PURSE OF INDIANA
Tippecanoe County, Mrs. Charles Benedict Stuart; Tipton County, Mrs. Sam Matthews.
Union County, Mrs. Charles Bond.
Vermillion County, Mrs. William H. Collier; Vigo County, Mrs. Robert E. Lee.
Wabash County, Miss Letha Urschell; Warren County, Mrs. Richard Stephenson; Wayne County, Mrs. A. W. Roach ; Wells County, Mrs. Abram Simmons; White County, Mrs. Charles Preston; Whitley County, Mrs. M. Mayer.
Southern Counties
The Victory loan report of the Woman's Liberty Loan Com- mittee for the Indiana counties in the Eighth Federal Reserve District showed that the women of the twenty-four southern counties exceeded their quota of fifty per cent. of the total quotas for these counties in the final Loan, with total subscrip- tions of $7,304,725, the total men's and women's quota being given as $14,092,950. In the southern counties district man- agers were appointed to assist in the women's campaign. The following chairmen were appointed: Mrs. Kate Jackson, of Seymour, for Sullivan, Greene, Lawrence and Jackson coun- ties.
Mrs. B. B. Griffith, of Vincennes, for Knox, Daviess, Mar- tin, Orange and Washington counties.
Miss Julia Penn, of New Albany, for Floyd, Harrison and Crawford counties.
Mrs. Edward Torrance, of Evansville, for Perry, Warrick, Dubois, Spencer, Pike, Gibson, Posey and Vanderburgh coun- ties.
Miss Sad Craig, of Jeffersonville, for Clark, Scott, Jeffer- son and Switzerland counties.
The women's county chairmen for the southern counties in the Victory loan, the amount of bonds sold in each county, and the per cent. of the total quota for each county these sales represented, follow :21
21. Printed report of Victory loan, including Woman's Liberty Loan Committee of Eighth Federal Reserve District in Indiana, April 21 to May 10, 1919, Files Fifth Liberty Loan.
198
INDIANA WORLD WAR RECORDS
Women's per cent. Amount Sold of County's by Women Quota
County
Chairman
Clark
Miss May Boyle
$178,550
42
Crawford.
Mrs. Margaret O. Funk
73,900
50
Daviess
Mrs. M. F. Burke.
254,700
63
Dubois
Mrs. A. L. Wilson
291,325
78
Floyd
Miss Edith Gwin
290,900
44
Gibson
Mrs. M. P. Hollingsworth
329,300
50
Greene
Mrs. Charles Combs.
302,425
50
Harrison
Mrs. Grace D. Applegate
107,450
50
Jackson
Mrs. Lenore Swails
197,600
40
Jefferson
Mrs. John Tevis .
219,500
50
Knox.
Mrs. B. B. Griffith
750,000
52
Lawrence
Mrs. Dan Tofaute
186,000
49
Martin
Miss Agnes Hughes
81,400
62
Orange
Mrs. William Schweiters
118,850
51
Perry
Mrs. William C. Conway
125,650
54
Pike
Mrs. Sylvester Thompson
121,750
52
Posey
Miss Alice Gamble
458,875
62
Scott
Mrs. George Zimmerman
45,250
50
Spencer
Mrs. Arch Stevenson.
153,450
55
Sullivan
Mrs. Oscar Hawkins
281,250
41
Switzerland
Miss Grace Griffith
100,500
75
Vanderburgh . . Mrs. Mary Steele
2,351,400
52
Warrick
Mrs. Will Hatfield
183,250
57
Washington
Mrs. O. C. Zink
102,050
46
State Total
$7,304,725
52.6
199
THE WAR PURSE OF INDIANA
"I suppose not many fortunate by-products can come out of the war; but if the United States can learn something about saving, it will be worth the cost of the war. I mean the literal cost of it in money and resources."
Woodrow Wilson
"The habit of saving money, while it stiffens the will, also brightens one's energy. If you would be sure that you are beginning right, begin to save. Extravagance rots character; train youth away from it."
Theodore Roosevelt
"It is within the province of every normal indi- vidual to be a success, and to gain a competency in life, if he is willing to pay the price to its prog- ress in economy, saving and thrift."
James P. Goodrich
CHAPTER VIII. WAR SAVINGS CAMPAIGNS
Prior to 1917, the postal savings plan had represented the only governmental stimulation of personal thrift and savings in the country. In the first year of America's participation in the World War, however, financial leaders of the country be- gan to think of possibilities for Government war financing that might lie in the collection of almost infinitesimal amounts of money from individuals. It was hoped the totals eventu- ally would be of such proportions that they would form im- portant sums in the general scheme of providing money for the war. The English plan of borrowing small amounts had done much to popularize the war, and it gave the bulk of the population a definite partnership in the conflict. Also it had tapped another of the reservoirs of personal credit, on which the war financing problems of any nation eventually must be based.
The final results of the War Savings plan might have been more important, if the plan had not been superimposed on the enormous Liberty bond finance structure.1 Not only did the leaders in the War Savings campaigns have to be drawn from practically the same field of individuals that were using their time and energy in the bond campaigns, but the actual collec- tion of moneys-even in such small amounts-was made infi- nitely harder because of the outpouring of Liberty bond dol- lars.
As was natural, therefore, the whole scheme of the War Savings campaigns gradually developed into the emphasizing of the Thrift idea among the people, and primarily the school children of America. In this broad field lay possibilities that did not have their conclusion in the ending of the war, al- though the total sales of War Savings certificates and stamps slumped materially after the enthusiasm of the war had cooled
1. The report of the United States Treasury, 1919, shows that on October 31, 1919, the Government had listed as an item in the public debt $910,684,987.44 (net cash re- ceipts) in War Savings Certificates. The report sets out that while the Thrift Stamp and War Savings campaigns were invaluable as vehicles for inculcating scientific thrift and safe investment programs in thousands of American homes, the real enlargement of Governmental credit through this channel was almost negligible, when compared with the more elaborate totals of the Liberty Bond campaigns. Gradually, as the Thrift Stamp and War Savings Stamp idea showed that it could not produce the income for war purposes that had been at first estimated, the entire movement took on more and more of the thrift-educational phase which was to continue for a long period.
(200)
BE A LOYAL HOOSIER
W
350
HELP OUR COUNTY WIN
THIS HONOR FLAG
May 27th to June 3rd
Thrift Stamp WEEK $7,500,000 in W.S.S. in 7 Days $2.50 for Every Hoosier
Honor Flag Awarded by War Savings Committee of Indiana
3
.P
201
THE WAR PURSE OF INDIANA
down, and the country plunged into the spending orgy that followed the Armistice. The Thrift campaign kept on, under Governmental stimulation, and continued to be a definite part of the Government finance program for years after the close of the war.
While the results of the War Savings campaign as to totals in moneys collected for Government use were relatively unim- portant, when compared with the billions collected through other forms of financing, the spirit of thrift and scientific sav- ing which was engendered by the campaign in many of the people of Indiana and the nation was of great value. It is probable that the habits of generations to come in America were modified by the Thrift campaigns. This is particularly true when it is remembered that the bulk of the Thrift cam- paigns were directed at the school children and at the em- ployes of large business houses and industries.
Many months after the war had closed the programs of systematic saving that had started among employes, children and other elements of the population continued uninterrupted. The banks of the state and nation benefited from this new thrift spirit long before the war had been concluded, and in the days following the conflict many plans for adapting the war thrift education to old and new financial businesses rap- idly took form. In many states corporations were formed to sell various types of service, under which school children, in- dustrial employes and others were to be made the sources of saved wealth, for use in normal channels of business.
The continuation of such programs resulted in greater financial protection for the masses of the people, and the establishment of a basis of living in many families more sane than formerly had been the case.
The War Savings movement was begun in the United States late in 1917, under the leadership and direction of Frank A. Vanderlip, formerly president of the National City Bank, of New York, and then serving the Treasury Department in the work of war financing. The original conception of the sale of War Savings stamps and certificates began with an initial offering of $2,000,000,000 by the U. S. Government.
Purpose of W. S. S. Campaigns
As originally planned and at first carried out, the cam- paign was not primarily for the purpose of raising revenue
202
INDIANA WORLD WAR RECORDS
for the government, but was rather based on the "Goods and Service Doctrine", following the plan of the English War Savings movement.
There was a limited amount of labor and a limited supply of raw material of all kinds in the country. The vigorous prosecution of the war created a very heavy drain on the labor supply of the country, by both the selective service law, which was calling millions of men from their industrial pursuits to join the active army, and also by reason of the fact that the necessity of manufacturing the almost endless quantities of equipment and munitions required to equip such an army, caused the establishment of many new and varied industries. There was thus, at a very early stage of the war, created a shortage of labor which was very seriously inter- fering with the production of the equipment necessary to maintain our army and aid our allies. At the same time it was apparent that many of the non-essential industries, in- stead of curtailing their production, were rather increasing it, owing to the fact that, on account of the war, wages had risen in some places to unheard of extent and much of the surplus wages was being spent in luxuries.
The movement therefore was meant primarily to combat this excessive demand for luxuries, and thus release labor for both the actual military service and for work in supplying munitions for the army. The idea of the campaign was to impress upon the American people that if their money, even in small amounts, was lent to the government it would be possible to use that money in the hiring of labor and the pur- chase of raw material for purposes that would have a direct bearing upon the winning of the war, and that if, as a result of this loaning of small amounts to the government, consump- tion of non-essentials was largely decreased, this would release labor and raw material from non-essential purposes to the production of material absolutely necessary to win the war. The appeal primarily was: "Do not spend your money for unnecessary luxuries, as this will take labor and material from the essential industries."2
The sale of the 25-cent Thrift stamp and the five dollar ($5) War Savings stamp was carried out as the most convenient means of diverting the idle quarters and dol- lars from the non-essentials and directing them into channels
2. Labert St. Clair, The Story of the Liberty Loans, 1919, pgs. 107-121.
203
THE WAR PURSE OF INDIANA
essential to the war. The actual securities were very similar to those used by the British. The smallest denomination was the 25-cent Thrift stamp. These stamps, as purchased, were placed on Thrift Cards and when sixteen stamps were at- tached a card had a value of four dollars ($4) if used in the purchase of a War Savings stamp. The War Savings stamp was what is technically known as a discounted security. It was a promise of the government to pay to the holder five dollars ($5) on the first of January, 1923. Inasmuch as it was to pay 4 per cent. interest, compounded quarterly, the amount of the interest was deducted from the purchase price, which was thus set at from four dollars and twelve cents ($4.12) to four dollars and twenty-three cents ($4.23). For the purpose of making the handling and sale of these stamps as simple as possible, it was provided that the cost in January, 1918, would be four dollars and twelve cents ($4.12), and that it would increase one cent each month throughout the year, and that at the close of the year that series of stamps, pay- able in 1923, would no longer be sold.
W. S. S. Campaigns In Indiana
In Indiana the War Savings campaigns fell roughly into two divisions. The first started late in 1917 and extended to the close of 1918, with Joseph D. Oliver of South Bend, as the Director of Sales. The second division had to do with the development of the Thrift idea and its application to the pur- chase of War Savings certificates in the period following 1918. During this latter time changes were frequent in the person- nel directing the sales. Robert E. Springsteen, then post- master of Indianapolis, was the most prominent figure in the state campaign following January of 1919.3
3. Director Oliver's Executive Committee was composed of himself, Will H. Hays, Chairman of the Indiana State Council of Defense, and Frank E. Hering of South Bend. R. M. Hutchinson, W. K. Lamport and F. L. Sims were named as assistants to Mr. Hering. The following officers of the committee had charge of the work on January 7, 1918: Joseph D. Oliver, State Director ; Frank E. Hering, South Bend, Vice-Director ; State Advisory Committee: James A. Hemenway, Boonville; Thomas Taggart, French Lick ; Charles Murdock, Lafayette ; Alice Foster McCulloch, Fort Wayne ; Andrew Smith, Indianapolis ; Horace Ellis, Vincennes ; Will H. Hays, Sullivan ; Frank E. Hering, South Bend ; Charles A. Greathouse, a resident of Indianapolis but listed from Mt. Vernon.
District chairmen for the campaign were named as follows: First district, C. B. Enlow, Evansville ; Second district, R. W. Akin, Sullivan ; Third district, Samuel Elsby, New Albany ; Fourth district, W. H. O'Brien, Lawrenceburg ; Fifth district, James S. Royse, Terre Haute ; Sixth district, Arthur B. Ayers, Fortville : Seventh district, Stough- ton Fletcher, Indianapolis ; Eighth district, Frank Ball, Muncie; Ninth district, George Dinwiddie, Frankfort; Tenth district, Walter J. Riley, East Chicago; Eleventh district, Frank M. Kistler, Logansport ; Twelfth district, Samuel Foster, Fort Wayne; Thirteenth district, Rome Stephenson, South Bend.
204
INDIANA WORLD WAR RECORDS
The first activity in the War Savings stamp campaigns so far as Indiana was affected, came in the first week in Decem- ber, 1917. Indiana's quota for the year 1918 was set at $58,- 323,860,4 and the quota of a group of central western states including Indiana, Illinois, Iowa, Michigan, Minnesota, Mon- tana, North and South Dakota and Wisconsin, was given as $432,738,140. On December 4, 1917, the stamps and certifi- cates were on sale for the first time in the capital city with the Indianapolis postoffice as the central agency for their sale, and the letter carriers serving as distributors.5
State Director Oliver launched his campaign on January 7th, 1918, with an appeal to the public in Indiana entitled "For Our Country's Cause." After calling attention to the fact that Germany had mobilized her entire man power; that there had been some talk of the same procedure in this coun- try; that a great work was to be done at home by those who did not go to the front; that money must be raised first of all; that "not all of us have money that may be loaned in sums even as small as $50, but there is not one of us who cannot save 25 cents a month;" and that "it is for the mil- lions of us who can save many twenty-five-cent pieces in a year that the War Savings campaign has been planned," he went on: "Let no one underestimate the importance of these small savings. When our forefathers came out to wrest homes for themselves and families from the wilderness, they felled the trees, hewed and notched the logs and built themselves cabins. These were the frame work. But between the logs they daubed the lowly mud-plaster, which they called "chinkin." And it was this "chinkin" that kept out the winter blasts and made the rude cabins habitable.
"And that is just what these War Savings are. Liberty bonds and taxes may furnish the bulk of financial war struc-
4. Indiana W. S. S. Bulletin, Vol. 1, No. 1, January 7, 1918. A complete file of the Indiana W. S. S. Bulletin extending from January 7, 1918, to February 4, 1919, the property of Frank E. Hering of South Bend, was the chief source used in the preparation of this chapter.
5. Dr. Thomas E. Stucky, then custodian of the Indianapolis Federal Building, was named as the first to buy the War Savings Certificates at the main office of the postoffice, while F. F. Bury was given credit in the same news article with having bought the first Thrift Stamps. Dr. Stucky bought thirteen certificates, saying he believed thirteen to be his lucky number, since he had purchased thirteen $50 Liberty Bonds of the First and Second loan offerings. Postmaster Robert E. Springsteen was in charge of the sales in Indianapolis at that time. Only $2,000 of stamps and cer- tificates were sold on the opening day of the campaign in Indianapolis and this was a distinct disappointment to those in charge.
205
THE WAR PURSE OF INDIANA
ture, but it is the little savings that go to fill up the cracks and the interstices which will put on the finishing touches.
"Nor should we overlook the element of consistency involved in it. This is a war to make democracy safe. If this is a democratic country, it is incumbent upon every citizen to help contribute to the war which is being fought to maintain democracy.
"I might dwell on what a splendid financial investment this is; I might discuss it as an encouragement to continued thrift and prosperity but those are so patent that I prefer to close with this admonition which I wish might be carried into every ยท home in the land: Every American is now on trial regarding his love of America and democracy in its widest, deepest and highest sense."6
One of the great differences between the War Savings stamps and Liberty Loan campaigns lay in the fact that the former were to be continuous. Constantly throughout the year 1918 efforts were made by both Liberty Loan and War Savings stamp chairmen to dovetail the work of their organ- izations.7 Very early in the War Savings Stamp campaigns it was determined to form Thrift clubs and War Savings so- cieties. There were to be at least 30,000 War Savings socie- ties, and before the campaign had been in progress many months this number had been passed.
These clubs began to be established early in January in manufacturing institutions throughout Indiana. Circular let- ters were sent out to all heads of such institutions.
"It is the purpose of this plan," said the announcement, "to encourage the organization of Thrift clubs wherever ten or more people are gathered together. . . and enlist as many , manufacturers in this service as possible."8
A letter from the Associated Employers of Indiana to their members said: "The United States Government has under- taken to form Thrift clubs in every factory, store, business
6. Indiana W. S. S. Bulletin, No. 1, January 7, 1918.
7. The War Savings officials always sought to cooperate by slowing down their sales organizations during the periods in which the Loan campaigns were in progress. And since the officials of both campaigns were the same in many counties it came about that the War Savings Campaign filled in the periods between the Loans.
8. In the first Bulletin of the W. S. S. Headquarters, was a quotation from a letter dated December 22, 1917, from Lee C. Davis, County Chairman at Shelbyville, Indiana : "Yesterday and today the factories distributed about 1,500 Thrift Cards and Stamps to their employes; we had to search the town for enough circulars to give each employe. We also had a meeting at every plant yesterday and today and an address by one of the four-minute men on the subject."
206
INDIANA WORLD WAR RECORDS
house and school throughout the country to enable every man, woman and child in the land to put their savings behind the Government in the present war through the purchase of War Savings Stamps and Certificates. We urge every employer to encourage this scheme among his employes. The plan is pronounced by able financiers to be the most efficient, safe, convenient, and profitable method ever proposed to afford peo- ple of small means the opportunity to accumulate savings, acquire habits of thrift and own what are in reality Liberty bonds of small denomination. Do It Today. Get a Thrift club started among your employes."9
February 3, 1918, was set as "Thrift Day" throughout the country. This was Sunday and the next day was celebrated as "Thrift Day" by efforts throughout Indiana to dispose of the securities. Bankers, business men, and others began to issue appeals through the press to make the War Savings drive a success.10
Governor Goodrich had issued on January 18th, a Thrift Day proclamation. He suggested that churches, and Sunday schools take notice of February 3d as Thrift Day, and that the subject be taken up in the schools of the state on Febru- ary 4th.
Sales agents for the securities had been established by the thousands throughout the country and Indiana. These agents were authorized to sell both Thrift and War Savings stamps. They were of two classes:
1. Agents of the 1st class who were limited to the posses- sion of not more than $1,000 worth (maturity value) of War Savings and Thrift stamps at any one time. These agents bought the stamps outright.
2. Agents of the 2d class who could hold up to $50,000 worth of stamps at one time. They were of two kinds: (a)
9. Indiana W. S. S. Bulletin, Vol. 1, No. 1, January 7, 1918. The first mention of the W. S. S. and Thrift Stamps as "Baby Bonds" was credited to the St. Joseph County Savings Bank in South Bend in its advertising. There was also the suggestion that holders of Liberty bonds put their interest into thrift stamps, and it was pointed out that the certificates bearing four per cent. interest, compounded quarterly, repre- sented an interest rate of almost five per cent. annually.
10. George M. Reynolds, President of the Continental and Commercial National Bank, of Chicago, stated that "This new inducement to save-the Thrift Stamp-is of tremendous importance to all the people. We have been the most extravagant nation on earth, having grown so fast that we have overlooked the little things. Our interests have largely been in the biggest farms and factories, the longest railroads and rivers, the biggest buildings and bridges, and the broadest men and measures. The day of conservation, of taking care of the nickels and dimes, and of doing away with all forms of waste is at hand. Now the extravagant shall become weak and the thrifty strong." Indiana W. S. S. Bulletin, Vol. 1, No. 3, January 21, 1918.
207
THE WAR PURSE OF INDIANA
Cash agents who bought their stamps outright, having indi- cated what they would be able to sell during the year 1918. They, then, did not make reports of their sales when applying for additional stamps. They paid cash for their purchases of stamps. (b) Collateral agents who deposited Liberty Loan bonds or United States certificates of indebtedness in payment for stamps.
Sales stations were not authorized agents. These stations acquired their stamps by purchase of an authorized agent, both War Savings stamps and Thrift stamps, and sold them at prices current in the month sales were made. They made no reports.11
The National committee desired to establish 30,000 sales stations in Indiana, during the month of January, 1918. To do this it was announced that every manufacturing plant in the state would have to carry Thrift stamps for sale. Several factories throughout Indiana had begun their War Savings stamps campaigns early by distributing Thrift stamps to their employes as Christmas bonuses.12
By the end of January in practically all of the larger cities elaborate campaign organizations had been formed, and the sale of stamps had started everywhere. The national public- ity plan to support the sales was developing along many lines. The postoffices and the letter carriers of the state-later the greatest single sales agency-already were distributing the securities broadcast. The Indiana Bankers' Association had notified banks throughout Indiana that certain investment re- quirements had been made by the Secretary of the Treasury, and that the banks should throw themselves into the cam- paigns at full speed. It was pointed out that the War Savings program, while it might divert some funds during 1918 which would otherwise go into savings accounts, would develop the thrift habit in millions of the people who never had before thought of savings investments and "will bring thousands of customers into the banks in the years to come."13
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