USA > Indiana > The war purse of Indiana; the five liberty loans and war savings and thrift campaigns in Indiana during the world war > Part 2
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What had taken place prior to the reading of President Wil- son's message on April 2, 1917, and to the declaration of a state of war by the Congress of the United States four days later, was merely the outward expression of a free people, slowly finding itself almost solidly behind the Allies in their fight against militarism. But immediately following the offi- cial action on the part of the President and the Congress of the United States, this unorganized spirit suddenly found expres- sion in various ways.
On April 4th, two days after President Wilson had officially requested Congress to declare war against Germany, Gov- ernor James P. Goodrich in addressing a great crowd at a flag-raising in Wabash, Indiana, spoke for three million Hoosiers when he said :
"I need not remind you of the crisis which confronts us today. After years of peace we are face to face with a mortal
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19
THE WAR PURSE OF INDIANA
struggle with a foreign power. That is why we are unfurl- ing Old Glory today. And Old Glory looks as beautiful now as in days gone by, because we know that our flag is being unfurled not for conquest, not for tribute, but for the pro- tection of American rights, and perhaps for the freeing of people who now look upon us as an enemy seeking to destroy. And just as I need not remind you of the crisis which con- fronts us, neither need I ask you to stand unflinchingly by your flag and the government at Washington. I know that each one of you will do his share towards bringing one more victory to the Old Flag, whether this be by meeting the enemy face to face, or converting the natural resources of the country into sinews of war. "1
Economic and Financial Readjustments
Many were the readjustments that speedily took place. The military arm of the state had to be strengthened immediately, a new supply of food had to be provided, manufacturers formulated their future plans in light of the nation's new de- mands, business generally was directed to the support of the nation rather than of the individual, the mental attitude of those gallant sons and daughters who were ultimately to face the enemy, had to undergo a change,-these and many other readjustments were made quickly and sometimes with great lack of organization. Finally came the call for money-the real sinews of war-and in the same spirit in which the state had prepared for those other sacrifices, her people cheerfully agreed to readjust their everyday lives, so that money would flow steadily into the war coffers of the nation. Money was the one thing that every citizen of the state could give to the war in larger or smaller amounts.
On April 24, 1917, Congress authorized the United States treasury department to issue and sell $5,000,000,000 of war securities. William G. McAdoo, Secretary of the Treasury, thereupon announced the issuance of $2,000,000,000 in Lib- erty Bonds.2 The denominations ranged from $50 to $100,000. They were to bear interest at the rate of 31/2 per cent an- nually. The date of maturity was fixed for June 15, 1947, but the government was authorized to redeem them at any
1. Indianapolis News, April 4, 1917.
2. In explanation of the term "Liberty Bond", the following is taken from the U. S. Treasury Report, 1917, p. 5: "This name was selected because the proceeds of the loan were to be used for the purpose of waging war against autocracy."
20
INDIANA WORLD WAR RECORDS
time after June 15, 1932. The Treasury Department an- nounced May 15th as the opening date of the first bond cam- paign, and June 15, 1917, as the closing. The bonds were exempt, both as to principal and interest, from all taxation, except estate or inheritance taxes imposed by authority of the United States or its possessions, or by any state or local tax- able authorities.
The immensity of the undertaking at first stunned the peo- ple. Few imagined that such a tremendous financial enter- prise could be handled successfully, even in rich America. In- diana newspapers, as did other papers throughout the coun- try, began to form bond sales bureaus to assist in educating the people generally to the necessity of readjusting their lives, and their finances, so that the great issue of bonds would be purchased. Similar methods of financing had apparently been successful in the European countries, but not in such volume as was planned for America.
As the war developed, and as the people became acquainted with the serious crisis confronting the free nations of the world, a new viewpoint toward money and its uses developed. By the close of the war, money, even in million dollar amounts, was talked of regularly in family circles and about the hearth- stones in Indiana, where it had been discussed before a bit breathlessly in thousand dollar amounts.
Banks Prepare to Handle Bond Sales
At first it seemed probable that the flotation of the secur- ities would be accomplished through a haphazard organiza- tion of the banks, post offices, express companies, newspapers, department stores, and other organizations.8 Gradually, how- ever, a system grew out of the chaos and naturally the han- dling of the details of the actual sales became the problem of a special organization in each governmental unit. In the first drive this special organization functioned primarily through the banks of the country.
Thus in Indiana, the seventh Federal Reserve Bank of Chi- cago, and the eighth Federal Reserve Bank in St. Louis, first
3. An examination of the files of the daily newspapers from every county in In- diana shows that a tremendous amount of space was devoted in each issue to the sub- jeet of the First Liberty Loan. Numerous articles explaining in detail the features of a U. S. Government Bond, the soundness of such an investment, the imperative need of supporting the Government, appeared in practically all of the newspapers. Whole page advertisements were inserted, sometimes by banking institutions, and sometimes by groups of patriotic citizens, appealing to the people for support in the initial Liberty Loan Drive.
THE WAR PURSE OF INDIANA
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INDIANA WORLD WAR RECORDS
turned to the Indiana Bankers Association and the clearing houses in the larger cities. Later a special war-time organi- zation was super-imposed on the banking institutions of the sixty-eight northern counties of the state, while in the twenty- four southern counties of Indiana, which were a part of the Eighth Federal Reserve district with headquarters in St. Louis, a similar organization was formed. At first it was be- lieved that the bankers' associations would be able to carry on the great work of raising the loans, but eventually it was found that these financial associations would have to be sup- planted by special Liberty Loan committees, organized for the avowed purpose of handling the details of raising the enor- mous sums of money that would be needed by the Federal Government.
From the responses to the efforts of early newspaper and similar loan bureaus it immediately became apparent that the Government's plan would meet with tremendous popular sup- port. On May 3, Secretary McAdoo telegraphed the twenty- seven thousand five hundred and thirteen national and state banks and trust companies in the United States, authorizing them to receive subscriptions for the $2,000,000,000 loan. Mr. McAdoo requested the financial institutions to inform him by wire as to the approximate amount of bonds each would take for itself and patrons.
On May 4, the day following receipt of Secretary McAdoo's telegram, the Indianapolis Clearing House held a meeting to devise ways and means of arousing a popular subscription throughout the state. It was estimated at that time by lead- ing bankers and bond salesmen, that $4,000,000 would be the total amount subscribed by the citizens and banks of Indian- apolis and Marion County in the First loan campaign.4
The Indianapolis Clearing House named a general commit- tee to have charge of the First Liberty Loan sales, composed of Stoughton A. Fletcher, Frank D. Stalnaker, Otto N. Frenzel, Arthur V. Brown, Evans Woollen, John P. Frenzel, James M. McIntosh, and Bert McBride. This committee, in turn, named the Marion County Executive Committee for the loan-the committee which eventually was to become the ex- ecutive factor for the entire Seventh Federal Reserve territory
4. How inadequate was the viewpoint of those early days is shown by the fact that during the Fourth liberty loan drive the staggering sum of $24,000,000 was subscribed by Marion County.
23
THE WAR PURSE OF INDIANA
in Indiana. This executive committee was made up originally of Will H. Wade, then head of the bond department of the Fletcher American National Bank, George C. Forrey, partner in Breed, Elliott and Harrison, and Chester A. Jewett, head of the bond department of the Union Trust Company. Mr. Wade was elected chairman, Forrey secretary, and Jewett treasurer. An advertising committee, composed of H. F. Clippinger, head of the bond department of the Fletcher Sav- ings and Trust Company, and James M. Pearson, of J. F. Wild and Company, was named by the general committee.
Some days later headquarters were opened at 110 East Mar- ket Street. The committee drew into headquarters practically all the experienced bond salesmen of Indianapolis, and gradually the executive committee came to be the agency through which Federal Reserve Director of Sales C. F. Childs worked in transmitting information, requests and messages to similar committees throughout the sixty-eight northern counties. During the opening days of the loan the Marion County Committee did not serve as a state committee. Gradually however, it assumed the functions of such a body. Eventually it became the general clearing house for the Fed- eral Reserve Bank of information as to the progress of the loan throughout the northern sixty-eight counties of Indiana. The Federal Reserve Bank of Chicago recognized this commit- tee as the chief agency in the sixty-eight northern counties and consulted this organization in regard to the progress of the loan in these tributary counties.
The methods adopted to float the First loan in Indiana were decidedly unorganized. The Marion County Committee (later known as the State Liberty Loan Committee) called on men of all political parties to go out over the state at their own ex- pense and urge the buying of U. S. Government bonds. A few special advertising features to arouse interest in the cam- paign were sent out by the Federal government. There was no systematized effort made to reach individual bond pur- chasers during the opening days of the loan." The speaking campaign which became a chief factor in later drives was of
5. A statement of Mr. Forrey's, a member of the Marion County Executive Com- mittee, dated May 14, 1919, relating to the plans adopted in the First liberty loan cam- paign is on file with the Liberty Loan material in the Indiana State Library, marked, Files First Liberty Loan. In this statement mention is made of the fact that one of the oldest members of the Indianapolis Clearing House Association announced that the city of Indianapolis would do well if it took one million dollars' worth of bonds. He ventured to say that the state at large might take three or four million dollars' worth of bonds.
24
INDIANA WORLD WAR RECORDS
wholly voluntary nature in the First loan period. Ministers, lawyers, bankers, doctors and others were called upon to give such time as they could. The Indiana newspapers handled whatever publicity there was for the campaign. Without their aid the work of selling government bonds would have been next to impossible. In front of the Marion County Head- quarters in Indianapolis, a platform was erected from which speakers were heard during most of the time between the hours of ten in the morning and five in the evening. Speakers were obtained from Fort Benjamin Harrison, and the Post band, and individual units of soldiers from Fort Harrison were used to arouse interest.
In the twenty-four southern counties of Indiana, a plan similar to that adopted by the sixty-eight northern counties was followed, in that the banks were expected to take the major part of the Loan quota. Marcus S. Sonntag, President of the American Trust and Savings Bank, and also President of the Evansville Clearing House, was appointed chairman of the twenty-four southern counties, and Frank R. Wilson, J. C. Johnson, C. B. Enlow, C. H. Battin, C. L. Howard and Frank Schwegeman were appointed members of his commit- tee." Two of the leading banks of Evansville announced be- fore the opening of the First liberty loan campaign that patrons had already spoken for $30,000 worth of U. S. Govern- ment bonds." Other southern Indiana banks announced that bonds would be sold on the partial payment plan, and the sub- scriber might pay for them as low as ten dollars down, and ten dollars a month until each $100 bond was paid for.
In Indianapolis, as in almost every county seat throughout the state, business houses donated the necessary supplies for maintaining Loan headquarters. The cost of posters, plac- ards, handbills, booklets, and numerous other incidentals used in advertising the Loan sent out from state headquarters to county committees, was met generally by contributions from local banks and trust companies. The Indianapolis Stock Exchange, and the Indianapolis Clearing House con- tributed expense money to the loan campaign in Marion County. A big bulletin board at the Indianapolis loan head- quarters recorded daily totals of sales from the counties of the district. The American Bankers Association, the Indiana
6. Evansville Courier, May 5, 1917.
7. Ibid.
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THE WAR PURSE OF INDIANA
Bankers Association and kindred organizations printed pam- phlets and otherwise assisted in arousing the public to the pur- chase of the necessary quotas.
Among the numerous slogans adopted for advertising the First Loan campaign in Indiana, appeared the following :
"If you can't offer yourself and your sons, offer your dollars."
"Your countrymen are giving their lives ; you are only asked to lend your money."
"Your country expects you to make your money fight;"
"Germany is watching."
"Have you helped your country by investing in the war loan, or have you helped Germany by keeping your money in your pocket ?"
"Do you realize that it is an expression of disloyalty to de- cline to contribute to this loan ?"
"You can help to end the war by borrowing on your life insurance policy or obtaining a loan from your bank with which to buy these bonds."
"If necessary, wear old clothes, old boots, old dresses; eat, drink and smoke less and then borrow against your future savings to invest in this patriotic necessity."
"Bonds as low as fifty dollars."
"Uncle Sam wants your money. Enlist your dollars here."8
Opening Of First Liberty Loan Drive
May 15, 1917, was the official date on which the First bond sales campaign was supposed to open throughout the United States. However, the sales organizations in Indiana did not start the campaign until one week later, May 22nd. The day preceding the opening of the campaign, Governor Goodrich issued the following proclamation :
"To the People of Indiana :
"Whereas, the United States has been drawn into the World War, not from any selfish motive but to protect the rights and lives of its citizens and to assure the permanence of the freedom and rights of democracy; and
"Whereas, The enemy is powerful financially and from a military standpoint and determined to wage the war with every means he can employ ; and
8. See Files, especially posters and hand bills of First liberty loan campaign ; In- diana State Library.
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INDIANA WORLD WAR RECORDS
"Whereas, Our people have prospered amazingly. through the profits in business which have come to us as a direct result of the war; and9
"Whereas, In order that we may preserve our rights and liberties, our government must win this war and so to do must have the united and enthusiastic support of all the people;
"Therefore, I, James P. Goodrich, Governor of Indiana, sug- gest that the people of this commonwealth evidence their sup- port of the government at this time by prompt and liberal subscriptions to the Liberty Loan. Go at once to your bank and subscribe to this loan. All banks and reputable bond houses are authorized to receive subscriptions.
"In witness whereof, I have hereunto set and caused to be affixed the great seal of the State at the Capitol, in the City of Indianapolis, this 21st day of May, 1917.
"JAMES P. GOODRICH, "Governor of Indiana."10
The first subscription recorded at the Indianapolis Liberty Loan headquarters was made by Ebenezer T. Chaffee, an old soldier living at the National Soldiers' Home at Marion, Indi- ana. He subscribed for a one-hundred-dollar bond. "I can't fight now,-but my money can", Chaffee was quoted as saying.11
One special honor that fell to Indiana during the opening of the First liberty loan drive was announced in a Washing- ton dispatch to the Indianapolis News, dated May 30, 1917. The dispatch read as follows :
9. It is interesting to note at this point that Indiana business men had already begun to exert their influence on the authorities in Washington to insure the Hoosier state a fair proportion of contracts for war materials. A dispatch from Washington dated May 6, 1917, announced that Indiana was the first of the Central Western States to call the attention of her congressional delegation to the necessity of having the big war contracts equitably distributed in view of the forthcoming heavy financing opera- tions of the government. An Indiana delegation of business men went to Washington to impress the request on the government. The spokesman of this delegation was quoted as saying that "Indiana probably will subscribe $5,000,000 to the war bonds," and he then insisted that it would not be fair to drain this money out of the state and pay it over to eastern manufacturing establishments when Indiana had manufactories that were capable of making all sorts of war material. The result of this request was that a plan was formulated whereby Indiana was to open a clearing house for war orders in Washington, and the interests of all Hoosier manufacturers were to be pooled for this purpose. The inadequacy of the ideas of even the big business men of Indiana in those days as to the final war financing needs was glaringly shown by this episode, for the $5,000,000 discussed as Indiana's share of the war finance program at that time really was but the proverbial "drop in the bucket" to the total amount actually sub- scribed. For further references to war contracts awarded to Indiana firms see page 43.
10. Indianapolis Star, May 22, 1917.
11. Ibid. May 24, 1917.
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THE WAR PURSE OF INDIANA
"HOOSIER FIRST TO BUY"
"Washington, May 30 .- An Indiana man was first to put up the money to help float the Liberty loan. J. N. Marsh, of Columbus, who is em- ployed here, sent $500 to the secretary of the treasury the day after the bond bill was signed by the President12 and long before he knew what the terms of the bond issue would be. After all these days Mr. Marsh finally has heard from the treasury department in the form of a receipt for his money. Secretary McAdoo sent him a personal letter and told Mr. Marsh how glad he was to get the letter of loyalty that accompanied the money."
At State Liberty Loan headquarters it was generally con- sidered that Indiana's quota for the First loan would be ap- proximately eight per cent. of the total banking resources of the state. While there was some uncertainty as to the exact total amount of the state's quota in that loan, it was some- thing less than $50,000,000.
That the banks and trust companies were expected to take the major portion of the First loan quota in Indiana is shown by the report at the close of the first day's campaign in In- dianapolis, as follows :
"Reports from Indianapolis banking houses show a lively local interest in the Liberty Loan. While the subscriptions announced include many by correspondents throughout the state, the bulk of the amounts to date are: The Fletcher American National Bank and The Fletcher Savings and Trust Company, $2,000,000; The Indiana National Bank and the Union Trust Company $2,000,000; The Merchants National Bank and The Indiana Trust Company, $1,000,000; the Meyer- Kiser Bank, $250,000; J. F. Wild & Company, $100,000; Breed, Elliott and Harrison, $100,000; The American Cen- tral Life Insurance Company, $100,000; the State Life Insur- ance Company, $150,000; The Citizens Gas Company, $100,- 000, and the Railroadmen's Building and Savings Association, $100,000."13
Equally gratifying reports were received from numerous other counties in the state. Charles Haas, President of the
12. Date probably was April 25, 1917.
13. Indianapolis News, May 23, 1917.
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INDIANA WORLD WAR RECORDS
Farmers Bank of Wabash; N. M. Mccullough, President of the Citizens Bank at Anderson and Chairman of the Com- mittee in Madison County, and William H. O'Brien, Chairman of the Dearborn County Loan Committee and former auditor of State, were among the first of the county chairmen to report on the success of the first day's campaign. Mr. O'Brien wired that the banks in Dearborn County had taken $140,000 of bonds on the first day. Other reports received that day showed the following sales: Carroll County $10,000; Cass County $100,000; Decatur County $180,000; Huntington County $160,000; Lagrange County $25,000; Noble County $50,000; Union County $250,000; and the five banks of the City of Lafayette, $750,000.14
Commenting on the results of the first day's drive the State Committee reported that the promptness and enthusiasm shown by the banks of the state in the movement to absorb Indiana's allotment of the Liberty Loan was indeed gratify- ing. The statement continued that numerous inquiries were being received from individuals as to the manner in which bonds could be obtained.
Various Plans of Advertising Loan Adopted
One of the plans for "carrying the loan idea to the people" adopted at an early point in the First campaign, was that of organizing a special speaker's bureau. This committee at first consisted almost entirely of officials and employes of banks. Dick Miller, president of the City Trust Company of Indianapolis, was named as chairman of the committee. The immediate object of the speaker's bureau was to co- operate with the newly organized Four-Minute-Men's organ- ization. Also special efforts were made to enlist the support of the farmers and live stock men throughout Indiana. Guern- sey Van Riper of Indianapolis was named to take charge of the newspaper publicity, and to represent the Advertisers Club in co-operation with the Loan committee.
Among the special advertising features adopted by the state Liberty Loan workers was the use of a sermon preached by the Rev. Newell Dwight Hillis of Plymouth Church, Brook- lyn, N. Y., relating to the Christian's duty to protect his people and his country. The sermon was reprinted by the Marion County committee and given wide circulation among the min-
14. Indianapolis Star, May 25, 1917.
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THE WAR PURSE OF INDIANA
isters of the state. Ministers throughout Indiana were urged to use this sermon, or one akin to it, in addressing their congregations on Sunday, May 27, 1917. Dr. Hillis' sermon bore the foreword :
"The Liberty Loan of 1917: A National Crisis-The Sol- dier Must Protect the State-The Business Man Must Equip the Soldier, otherwise the Republic and Our Allies Can Not Survive."15
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