THE SUNDAY OREGONIAX, PORTLAND, OCTOBER 17, 1915.
-$$JAYCGDKERI
SEDAJBt
$$$
KAD1NG financiers of Great Brit
France have Just nego-
loan in the United States
for hundreds of millions ot dollars.
No banker or any group of bankers
has or can control this much money.
"Where would they get it? "Whose toil
ing efforts have made it possible for
this weith to be accumulated? How
would the loan be distributed or, more
pointedly, from whose purses would
the money come and through what
channels would it go?
These are some of the questions be
ing asked by the public, which for the
laat xno.Titti has been trying: - to Kaln
Home understanding; of such a colossal
transaction.
No attempt to raise such a vast sum
of money has been made in this coun
try since tho days of the Civil War.
Older heads in Wall Street recall the
furore which attended the successful
distribution of the two large loans put
out by the government one for five
hundred millions of dollars and an
other for eight hundred and thirty mil
lionsto pay the expenses incurred in
the struggle to preserve the Union.
Jay Cooke, the great financier of
that period, engineered the flotation of
both loans and the machinery he or
ganized and set in motion for gather
ing up the savings of people and ex
changing them for the government's
"five-twenty" and "seven-thirty" bonds,
while perhaps crude alongside of the
highly perfected system for conduct
ing banking and investment business
which exists today, was marvelous
from the viewpoint of results achieved.
He succeeded in speeding up his sys
tem to the point where subscriptions
tor the bonds came in faster than the
Treasury Department could supply the
engraved certificates.
It has been suggested that the bank
ers who have negotiated the Anglo
French loan may have studied the
Cooke methods. The Government's
"five-twenty" loan was authorized in
February, 1862. It remained on the
market nearly a year without success,
despite various efforts of Secretary
Chase to negotiate it. He solicited of
fers In New York, but the condition
of the money niarnet at the time was
such that most of the bids were at a
considerable discount below par. In
fact, there was not sufficient of cur
rency in New York to absorb the loan
rapidly enough to supply the wants of
the Government.
It became evident that if the loan
were to be taken it would only be
through popularizing; it, by seeking
purchasers among the mass of the
peoplo in all parts of the country, and
no longer merely upon the capital ac
cumulated la the money centers.
' How was this to be done? The
Treasury Department was not adapted
to the management of business of that
character. There were no officers who
could bo charged with the undertaking.
All the bureaus were crowded with
overworked employes. Besides, the
laws regulating tho receipts and dis
bursements of public moneys present
ed Insuperable barriers to a direct ne
gotiation of the loan between the
Treasury Department and the people.
Popularising; Machine Organized.
When these difficulties became obvi
ous Secretary Chase decided to resort
to private enterprise and selected Jay
Cooke, of Philadelphia, head of the
banking house of Jay Cook & Co.. as
LEADING
uin and
tiated a
(ffVFOR, THB TOUNG
ELMER NA UGHTON'S "S. O. S."
WHEN Elmer Naughton and
George Duval constructed their
amateur wireless stations at the
houses of their respective parents they
bad no idea what it might ultimately
mean to them. It entertained them,
and. as Elmer's mother said, kept them
out of mischief while teaching them
something valuable, and so was worth
the money it cost. To tell the truth,
th Naughtona bore most of the ex
penso of both plants, because they had
money, while the Duvals were poor;
but George was so prolific in ideas that
there was no feeling of unequality on
either side. Besides, what would El
mer's plant be worth if there was no
one to respond to his messages?
Many pleasant days were spent by
th boys in erecting towers on top of
their houses, and so bracing them that
they would stand. Many days passed
In gathering together telegraph Instru
ments and the necessary batteries be
fore they were ready for the test. In
the meantime the boys had studied the
Morse code until they knew it almost
s well as they did the printed alpha
bet. Indeed, th preparation of the
wireless occupied almost the entire
Summer vacation.
At last, however. It was completed.
I. UK TURNED Olf TUB WITCH
'iillfli-i. Ilr isr--iMW'lt"'-'"''r - --1 L.rtaaM-& J,...:...
special agent for the Treasury De
partment in disposing of the bonds.
Mr. Cooke attacked the work with
vigor and enthusiasm. "Under his man
agement there was organised a. vast
machinery that resulted In the enlist
ing of every bank and banker and
almost every newspaper in the North
ern States in advocating the loan. He
conducted a publicity campaign which
up to that time was probably without
a parallel.
"The 'five-twenty loan and it
merits." said Senator John Sherman
afterward, "stared in tho face of the
people in every household from Maine
to California. . . . The people
everywhere, in all parts of the country,
came with their little savlnrs. some
more and some less, and poured them
into the treasury, taking in return the
pledge of the Government to repay
their loans."
The bonds were issued In denomina
tions of $50. $100, 1500 and $1000, and
it was estimated that at least 8.000,-
000 persons subscribed for the loan la
amounts ranging from $50 to sums In
six figures. Senator Sherman said: "I
know that in the portion of Ohio where
1 live there la scarcely an independent
farmer or mechanic who has not more
or less of It. It has been taken by
servants, laborers, mechanics, persons
in every walk of life.""
Farmer)' Support Sought.
The Cooke advertisements were spir
ited and confident, reflecting the vig
orous character of the man who wrote
theiu. He kept the loan before the
people constantly.
Hia newspaper "broadsides" were
characterised by both originality and
ingenuity. One of his most effective
efforts in the line or publicity appeared
as a kind of farmers' and mechanics'
catechism, entitled "The Best Way to
Put Money Out at Interest." One of
his favorite ways in gaining desired
publicity was to present a series Of
questions supposed to have been pro
pounded by a farmer or laborer, which
he would answer lucidly, all of which
would be sent out to the newspapers
throughout the country for publication
in full. He believed thoroughly in the
power of the press.
Mr. Cooke personally called upon the
editors in Philadelphia and New York
to indoctrinate them with his views.
His brother, Henry Cooke, was on terms
of Intimacy and friendship with the
correspondents congregated at Wash
ington and, so we are told. Invited them
individually and in parties to partake
of the hospitalities of his splendid home
in Georgetown to be "filled full to the
brim, not only with edibles and biblbles,
but with 'the glorious financial pros
pects of the future."
In all parts of the country the news
papers would frequently commend Sec
retary Chase and Jay Cooke, for their
financial sagacity, advise the people to
Invest in the loan, record the amount
daily received from subscriptions and,
like the managers of famous singers
in those days, vociferously reiterate
that the "last chance to see, hear and
get eo much for so little money" was
near at hand.
Besides the countrywide publicity
carried on in the newspapers and mag
azines Cooke literally showered the
Nation with show cards, posters, cir
culars, pamphlets and handbills, a
marvelous variety of devices of the
type to catch the eyes of the people, im-
The towers stood higher than any
building around; higher than th inter
vening trees. From the 'tops of each
tree projected many metal tips, and
these were connected by wlr with the
Instruments Inside. The batteries were
carefully prepared and the first mes
sage was sent. It worked I
Thereafter the boys became the envy
of the neighborhood. There were oo
caaional hitches, requiring the use of
the telephone between th homes ot th
two boys. But glory came when the
local editor visited the station at El
mer Naughton's and wrote a good "no
tice" of the work of the two boys. To
the other boys this was fame. It made
them wish that they, too. had prepared
themselves to do things.
It was the night before school was
to begin. There was something about
the proximity ot school which led El
mer to sleep lightly. During the night
he awakened sufficiently to bear
sounds that ordinarily would have
made no impression upon him. Final. j
there came a creak arid an unmistaka
ble footfall in th parlor downstairs.
Elmer was fully awake and alttlna;
upright in bed. In moment. The
clock made a tremendous noise with
its ticking, and Elmer's own heart
thumped till h feared it might alarm
AND BBQAS HIS CAU, -I. O. .
.it f-&$C f) W&MsjBSf 'xf" M'.'k &.
rfife-x-x'. ..MmgMm
press their minds and draw the money
from their pockets. One poster which
attracted particular attention was em
bellished with an American eagle and
urged the workingmen and women to
"fetch on your little sums of $50 and
the neighbornood, but through it all
he could distinguish a stealthy sound
in the parlor. He arose and crept to
the stairway. As he did so, a dark
shadow crossed at the foot of the stairs
and entered a room on the opposite
side of the hall. Elmer understood.
There were burglars in the house.
Two of them, for now a second figure
crossed the hall, and as he did so flashed
' momentarily a light up the stairway.
Elmer's heart jumped and then stopped
beating. What if he had been seen'
Apparently he had not been, for the
burglar passed on without a pause.
"What ought he to do? One sugges
tion after another ran through Elmer's
mind. He was afraid to cry out. He
feared to try to slip into his father's
room to notify him, lest he be heard
by the intruders below. Now he knew!"
The telephone was in the room adjoin
ing his own. He slipped in there and
carefully closed the door. Then, hold
ing his hand over the bell to silence
the sound, he rang up Central. Then,
was no response. Again he rang.
Again there was no response. It cam
to him m a flash that the burglars
had cut the wires before they entered
the building for th express purpose
of preventing a call by telephone; and
another flash revealed to his mind that
tho wireless had no wires to cut. Into
hia own room he stole where th wire
less outfit was. He turned on the
witch and began his call, "S. O. S."
Over and over he called without re
sponse, until at last, yes! George was
clearly at the other instrument.
"Burglars in house. Wires cut
Phon for officers."
That was the massage Elmer clicked
with greater speed than ha had ever
displayed before. Immediately re
sponse at the other end ceased. Noth
ing was left for Elmer to do but to
trait. And wait he did. counting th
ticking of the clock until it ran up into
the thousands, and still there was no
response. He etill heard at intervals
the shuffling downstairs, but jas too
much in terror to look again into the
hall or to notify his father of what wa
happening. A thousand things ran
through his mind, many of them hav
ing no connection with the event trans,
piring. For. one thing, the lines of
Byron:
"My hair is gray, but not with years,
Nor turned it. white in a single night.
As mm have don from awful
fears,-
repeated itself to him over and over,
and he wondered If his own hair was
turning -white, and what Becky Hll
liard would think of him if he should
appear th next morning with silvery
hair.- Thr were many sounds out
side, though he had always supposed
$100. Make the United States your
savings ban- "
All the while traveling agents ooursd
the country from end to end eekinsT
money in the remotest corner of the
country. It was not long before the
the night was a season of quietness.
He began to count the various sounds
he heard. Then suddenly there was
another sound, different from the ever
repeated tones he had heard before.
A key turned in the door, and it was
thrown open as an officer stepped
within. There was a rush in the room
across the hall.
Then two officers stepped into view,
each with a prisoner in hand. The
lights had been turned on in force.
It was at this time that Elmer's father
was awakened and came into the ball
upstairs.
"What's up?" he called.
"The jig is,'' one of the officers
laughed back. Elmer remembered the
words, though he hardly understood
Solatia te Chestnnt Pnasle.
their meaning. "You were being; bur
glarised and we have caught th
burglars red-handed."
Father, mother and Elmer were
both down stairs by this time. In one
corner ot th room was a quantity of
silverware that the burglars had col
lected la cloth, ready for their depar
ture. The guilty men stood silent and
stolid.
"But bow did you find out about
the burglary?" Elmer's fathar asked.
"Oh, your kid sent word to his
chum by wireless, and that feller noti
fied the polio by phone. Tour wires
were cut. you know. Some kids,
whatt"
The general verdict of the town,
when the news srot abroad, was la ac
cord with that of the officer, though
generally oouched in more elsgant
language. The makers of th wire
less stations were looked upon as
something approaching geniuses and
almost heroes besid. Mr. Naughton
mad each of th boys a present ot
complete sot of tools for mechanical
drawing. But mora than all th
praise, and mors than the gift from
bis father, Elmer appreciated a great
red apple which he saw Becky Billiard
Place on his 6esk by stealth.
xK
( A. A
X 1
vsr y
name of Jay Cook became known
every village and farm and had only
BLUE EYES AND HER EYELIDS
BLUE EYES was a little girl who
wanted to have her own way. So
"one day she scolded her eyelids
for winking without waiting to be told.
"You are my very own eyelids," she
said, "and should only close when I
want you to."
Now the little girl's eyelids were
very much surprised when they heard
her say this, and one told the other
it thought she must be joking. "For,"
it said, "if she has to do th winking
all by herself, she won't be able to do
anything else, for she would always be
thinking of the right time to close her
eyes." Then they told the little girl
that while they would like to please
her, and had been doing their very best
for seven years, they were afraid she
might forget to close her eyes often
enough to keep them damp or to keep
the dust from getting in.
"Oh, I can close my eyes whenever
I want to. Bee," she said, showing
them "how. "So you needn't bother
about it any more."
The eyelid were very quiet until
th little girl closed them herself tha
night and went to sleep. Then one of
them said it didn't think she did It
very well.
"Neither do !," agreed the other.
mm OUR PUZZLE CORNER MIS
CHEStWtT
Tnea children are gathering ched'nuts. See if you can find one by cul
ting out th black pieces and fitting them together,
be spoken by one of his solicitors to
draw the carefully hoarded savings
from their hidden recesses as it by
magic Hundreds of timid persons who.
would not intrust their hard won sav
ings to agents traveled by train to
Philadelphia, not infrequently from
points far distant, that they might hand
the)r money over to Cooke personally
and received from him the coveted cer
tificate. . Night agencies at which mechanics,
mill workers and factory employes
could subscribe for the bonds were es
tablished in all the large cities shortly
after Cooke received his appointment
for the "seven-thirty" loan, in Janu
ary, 1865. Accessibility rather than
outward appearances determined the
location of these Impromptu "banking
quarters."
The office of a coal and wood con
cern, a real estate shop, and even the
front part of a corner saloon, answered
the purpose, so long as it gave the
wageearner an easy opportunity to in
vest his surplus earnings in United
States bonds.
Nearly a score of these night agen
cies were opened up in New York City.
Brooklyn and nearby New Jersey fac
tory centers, and for weeks the "seven
thirty" government furor continued at
a high pitch. Some idea of the excite
ment and interest which attended the
sale of bonds by lamplight may be had
from the following extract from an ar
ticle which appeared in & leading New
York newspaper at the time:
"All sorts ot people, all varieties of
race and character, flock to the night
agencies. Thousands are accommodated
In a night and sums represented by
bonds varying from the small $50. which
places the loan within the reach ot the
poorest -savings, to the more enviable
$1000 note are taken with republican
simplicity into the vast receptacle ot
the United States exchequer.
"A glance at the characters ordinarily
encountered in a single night of the
'seven-thirty' will give some idea of the
universality of this impartial money
distribution.
"Out ot 100 bond buyers who crowd
the office at Bleecker street, each wait
ing in turn to lend his money out at
interest, at least 60 are mechanics or
laborers, 20 are saloonkeepers, small
dealers p.nd soldiers, and the rest are
an almor.t nondescript condition of ver
ders, clerks and even boys, mixed in
with women in faded calico and mourn
ing a confusion of faces, tongues and
opinions."
The remarkable, success which at
tended the employment of these meth
ods fully justified their adoption.
Within less than IS months after Jay
Cooke took charge of the distribution
of the "five-twenty" loan the enormous
aggregate of $500,000,000 had been di
verted from the ordinary channels of
Investment and trade and turned over
to the Government without serious dis
turbance to the industrial or commer
cial interests of the country.
The loan had been before the public
- several months before the adoption of
the popular agency system, and during
that time there was scarcely a per
ceptible demand for it. Within a few
months after the agency system was
inaugurated by Mr. Cooke the sales
commenced running at $1,000,000 a day,
and so soon as the machinery for the
popular sale and distribution of the
bonds was fully perfected and in oper
ation the demand grew In all part of
the . country, swelling the sales to
$3,000,000 and upward a day.
In all the period the popularizing
machine was in action there was no
serious pressure resulting upon the
money market, no exhaustion of the re
to source relied upon, no faltering Or un
to evenness in the flow from a thousand
"For. instead of letting her lids droop
very slowly, which is all the style now,
she squeezed them down real tight."
"And what if she should forget to
close them some night?" said the first
one. "I feel her big blue eyes would
get very red and sore." So the eye
lids talked to each other all night
telling how much better it would be
for them to do the winking without
waiting to tbe told; because they knew
when the light was too bright and
when it was time to close them half
way.
And in the morning the sun came
up and shone on her pillow and the
little birds sang outside her window,
but the little girl did not awaken. After
her mother had called her ever so
many times, one of the eyelids said.
"If we were to open just the least little
bit the light would enter her eyes
and awaken her as it does other morn
ings, but she told us she wanted to do
It all herself, so we'd best be as quite
as w can." When mamma cam Into
th room later she was frlghtalad and
opened her little girl's eyes to If
anything was th matter with her.
Blue Eyes was glad to be awakened
and said she had slept very long be
cause she had told her eyelids not to
PUZZLE.
rills which fed the constantly swelling
current of the supply. In thus popular
izing the loan, distributing it among
the people in all sections, occupations
and degrees of wealth, the foundations
were laid for future loans and the na
tional credit was placed on a broader
and firmer basis than it ever had been
on before. This was demonstrated by
the marvelous rapidity with which the
operation of marketing the "seven
thirty" loan was completed, the issue
having been run up to $830,000,000
within six months after Mr. Cooke had
received his appointment as subscrip
tion agent.
Modern Methods More Refined.
Since the stirring days in which Jay
Cooke achieved his financial triumphs
the processes by which the surplus
funds of the country find their way
into Investment have been refined and
brought up to a higher state of perfec
tion. There exists in the economic
structure of the nation today a finan
cial department of perfect machinery
which applies to the country's develop
ment the combined energy of th ac
cumulated savings ot men and women
all over the land. Like the transmis
sion machinery of the modern indus
trial plant by which the heat units in
the coal bin are transformed to pounds
of energy in producing useful com
modities, our banking system gathers
up the savings the $500,000 nest eggs
from myriad thrifty homes, unites
them in powerful funds ot limitless
energy and puts them to work. It is
through the operation of this ma
chinery that railroads and public utili
ties are financed. Industrial enterprise
is promoted and tho funds required to
carry on state and municipal improve
ments are raised. '
To gear this machinery up so that
large foreign loans can be arranged in
this country is the problem now before
the heads of the Nation's great finan
cial institutions.
From the very outset of the war they
have realized that nations of Europe,
being engaged in the waste and de
struction of capital on a prodigious
scale, would sooner or later be knock
ing at our doors and asking for finan
cial aid. That time has come. England
and France have sent some of their
most gifted financiers and men of af
fairs to the United States on a bor
rowing mission.
Baron Reading, Lord Chief Justice of
England, a man of extraordinary intel
lect and f orcefulnes;, often spoken of
as England's Disraeli of the 20th cen- -tury;
Sir Edward Holdcn, one of the
foremost Joint-stock bankers of Lon
don; Sir Henry B. Smith, an interna
tional banker of wide experience; Oc
tave Homberg, of the French Foreign
Office; Ernest Mallet, regent of the
Bank of France, and Basil B. Blackett,
a British Treasury expert these are
the men who have come to arrange for
a loan to be pledged Jointly by their
respective countries.
In listening to their arguments the
American bankers have constantly kept
in mind the fact that in order to get
the people to invest in bonds of for
eign nations they must first 'make them
see the advantages to be gained by
lending money abroad.
Obviously their problem Is not th
same as that which confronted Jay
Cooke, whose appeal for funds was.
after all, largely an appeal to the peo
ple's patriotism.
Cold facts concerning foreign ex
change, th movement of th crops and
other phases of the country's business,
vital as they are to general prosperity,
cannot be expected to awaken the same
enthusiasm as the cry, "The Union
must be preserved!" Nevertheless,
when the financial machinery of the
country is once set in motion wonder
ful things can be accomplished. Jay
Cooke demonstrated this.
move by themselves but to wait until
she told them to.
"You will be doing all you can If you
make your hands and tongue behave."
said mamma, who helped Blue Eyes
dress so she could have her break
fast and not be late for school.
ABOUT BAD TEMPERS.
When I am angry, I can see
It hurts no other one than me;
My face gets very hot and red.
And palrm are fighting in my head.
I go boo-hooing off to bed
Ashamed of ail the things I've said.
When I am loving, sweet and kind
I'm very sure to always find.
My head is cool, my heart is light.
And everything inside me right,
I have a good old appetite
And smile myself to sleep at night.
And so it seems, if I am smart,
I'll cultivate a gentle heart;
I'm sure myself will like this plan
For he's a little business man
He likes my temper spick-and-span-Bo
I will do th best I can!
Misery.
Topeks Capital.
Next to th boy who has money com
ing to him whioh he cannot collect, the
most miserable person is the colored
man with a gold tooth and no ohance
to display It.
- DIVISIONS.
1. Divide a flower in two parts and
get an article of food and a Vessel used
for drinking.
1. Divide a vessel whioh holds Bine
gallons In two parts and et a tree
and people related by birth.
3. Divide a family living together
in two parts and get a place ot abode
and to grasp or restrain.
t. Divide an order or command In
two parts and get a member of the
male sex and a fruit.
WORDS! WORDS! WORDS!
What nine words containing three
letters each can be expressed by one?
1. River?
2. Insect?
3. Bird? 4
. Garden vegetable?
S. Chinese drink?
C. Tree?
7. Body of water?
$. Part of the body?
9. Question?
ANSWERS.
DIVISIONS 1. Butter-cup. t. Fir
Uin. 3. House-hold. 4. Man-date.
WORDS! WORDS! WOHDBI Dee
(D), Bee (B), Jay (J). Pea (P). Tc
(T), Yew (U). Sea (C. Eye (I), Why
(Y).